Written by

Jennifer Carlson

August 25, 2025

Edited by

Kristen Cramer

Fact-checked by

Tara Farmer

Opening a daycare in Minnesota

Starting a daycare in Minnesota requires careful planning, compliance with state regulations, and dedication to providing safe, high-quality care. This guide outlines all the essential steps to open a home-based or center-based daycare system in Minnesota, reflecting the latest rules and licensing requirements.

1. State of Minnesota daycare licensing

The Minnesota Department of Children, Youth, and Families (DCYF) regulates all licensed child care programs, having taken over from the Department of Human Services (DHS). All daycare centers must obtain an appropriate license before operating.

Types of child care licenses

Certain child care programs, such as those run by public schools or religious organizations, may be exempt from licensing but still must register with DCYF.

• Child Care Center: 13 or more children in a non-residential setting

• Group Family Child Care: 7 to 12 children, including those related to the provider, in the provider's home

• Family Child Care: Up to 6 children, including related children, in the provider's home

• Legally Exempt Care: Care provided under specific conditions exempt from licensing but may require registration

Zoning and local regulations

Before applying for a license, contact your local zoning office to confirm your location complies with city or county ordinances. For home-based care, check with your homeowners' association or landlord and obtain written permission if necessary.

Staff-to-child ratios

Minnesota enforces strict staff-to-child ratios to ensure safety and quality care. Ratio requirements vary by age group and care type.

Family Child Care Homes, on the other hand, have to follow these rules:

• The home must have a capacity limit of 10 children, with no more than 6 being under school age.

• Within that group of 6, there can be a maximum of 3 infants and toddlers combined, and no more than 2 infants.

• If only one adult caregiver is present, and a newborn is in care, that newborn must be the only child under 12 months, unless there is another adult caregiver or the newborn is the provider's own.

2. Attend training and background checks

All owners, directors, staff, and volunteers must meet Minnesota's training and background check requirements:

• Pre-service training: Complete DCYF-approved health, safety, and child development training before starting work.

• Ongoing training: Staff must complete annual continuing education hours focused on child care topics.

• CPR and first aid: Maintain current pediatric CPR and first aid certification on-site at all times.

• Background checks: All staff, household members (for home-based care), and regular volunteers must pass state and federal fingerprint-based background checks and child maltreatment registry checks before employment and every five years thereafter.

3. Prepare the home or center

Your daycare must meet Minnesota's health and safety standards:

Indoor and outdoor space

Provide at least 35 square feet of usable indoor space per child and adequate outdoor play areas that meet safety requirements. Ensure the environment promotes learning, exploration, and physical activity.

Safety standards

Equip your facility with smoke detectors, fire extinguishers, secure exits, and childproofing measures. You must pass fire, health, and sanitation inspections before you can officially open your doors.

Supplies and equipment

Stock age-appropriate furniture, toys, books, and sleep equipment. For infants, provide approved cribs; for older children, use cots or mats. Ensure all materials meet safety standards. Make sure to read our Daycare Supplies List to see if you're missing any supplies.

4. Submit your application to DCYF

Once you finish your training and prepare your facility, submit your application to the Department of Children, Youth, and Families. Required documents include:

• Completed licensing application

• Proof of completed training and certifications

• Background study clearances

• Floor plans or facility layout

• Fire and health inspection certificates

• Lease agreement or proof of property ownership

• Zoning and business permit approvals

Within a 90-day waiting period, the DCYF will either accept or reject your application.

5. Facility inspection & fees

As part of the application process, a DCYF licensing specialist will inspect your daycare to verify compliance with all state regulations. Be prepared to demonstrate emergency procedures, daily routines, and staff qualifications.

Your licensor may require a fire marshal inspection. You'll also have to undergo a physical exam within one year of your licensure stating you're physically able to care for young kids.

6. Develop a handbook

Your licensor can help you create a comprehensive handbook outlining the following details:

• Hours of operation and holidays

• Tuition rates, payment policies, and late fees

• Enrollment and withdrawal procedures

• Discipline and behavior management approaches

• Emergency plans and reporting procedures

• Staff qualifications and training

• Meal, snack, and nap schedules

• Procedures for reporting suspected abuse or neglect

• Your daycare sick policy

Updates

If you make any policy changes or the state makes any changes to regulations, update your handbook accordingly. If you get feedback from caregivers that warrants making changes, notify your staff and families if you implement those changes.

Curriculum and schedule

Design a curriculum that supports children's development through play, exploration, and structured activities. Include outdoor play, creative arts, music, story time, and quiet periods in your daycare schedule to promote social, emotional, cognitive, and physical growth.

7. Set up your business

Register your daycare as a legal business with the Minnesota Secretary of State. Choose a business structure such as sole proprietorship, LLC, or corporation, and obtain a federal Employer Identification Number (EIN).

Secure insurance coverage, including general liability and property insurance. You'll also need workers' compensation if you employ staff. Maintain thorough records of attendance, health and immunization, staff credentials, and finances.

Writing a business plan

A solid business plan can help you visualize your goals and is also a good tool when seeking funding or a grant. For in-depth instructions, read How to Create a Daycare Business Plan. Include the following subjects in your plan:

• An overview of your business and a clear mission statement

• Analysis of the local market and identification of community needs

• Comprehensive descriptions of the child care services you plan to provide

• An operations plan detailing staffing, facility layout, and daily schedules

• Your approach to marketing and outreach

• Financial forecasts, including budgets and projected income and expenses

• Written policies and standard operating procedures

• Details about your management structure and key organizational roles

• Relevant supporting materials, such as licenses, permits, and staff qualifications

8. Minnesota daycare grants

Daycare owners in Minnesota can access a variety of grants and funding to support startup, expansion, facility improvements, and ongoing operations. These grants aim to increase child care availability, improve quality, and help providers address needs. Below is a comprehensive list of available grants:

• Federal programs:

  • Head Start and Early Head Start

  • The Child Care Development Fund (CCDF)

  • Preschool Development Grants Birth through Five (PDG B-5)

  • Child Care and Development Block Grant (CCDBG)

• State grants:

  • Child Care Economic Development Grants (DEED)

  • Greater Minnesota Child Care Facilities Grant Program

  • Minnesota Child Care Facility Revitalization Grants

  • Child Care Technology Grants

  • Child Care Assistance Program (CCAP)

• Local or private grants:

  • Initiative Foundation Grants: Six regional foundations that serve all 80 counties in Greater Minnesota

  • No Child Left Inside Grants (Minnesota DNR): Mini-grants ($500 to $5,000) and larger grants ($5,001 to $25,000) for programs that connect children with outdoor learning and nature-based activities

  • Youth Today Grant Listings

9. Marketing your daycare

Build your daycare's reputation and attract families by:

• Creating a professional website with program details and enrollment information

• Joining TrustedCare to increase visibility

• Using social media to share updates and testimonials

• Listing your daycare on local child care directories

• Hosting open houses and community events

• Partnering with local schools and businesses

• Encouraging referrals through incentives and positive reviews

• Advertising in local publications and displaying clear signage

Check out our Daycare Marketing Ideas guide for more tips and free ways to advertise your business.

10. Hire qualified staff

Hire staff who meet Minnesota's requirements. All staff members must undergo a background check. Aides must be at least 16 years old, while teachers, directors, and assistant teachers must be 18 years old or older.

All teachers must have a high school diploma or equivalent, experience working with children, and child care-related coursework. Directors must meet those requirements and have at least 1,040 hours of staff supervision experience and 90 hours of related coursework.

11. License renewal

Renew your license annually by submitting updated documentation and paying the required fees. Expect unannounced inspections to ensure your facility continues to comply with state health and safety regulations.