How to Open a Daycare Center in North Carolina
How to Open a Daycare Center in North Carolina
How to start a daycare in North Carolina
Opening a daycare in North Carolina requires careful planning, strict adherence to state regulations, and a commitment to providing safe, high-quality care. This guide outlines the essential steps and legal requirements for launching either a home-based or center-based daycare in North Carolina, with all information tailored to current state laws and regulations.
1. Get a child care license
The North Carolina Division of Child Development and Early Education (DCDEE) oversees all child care licensing in the state and regulates both child care centers and in-home daycares.
Types of daycare licenses
North Carolina offers several types of child care licenses, depending on your setting and the number of children you plan to care for:
Child Care Center (CCC) license: This license is required for the care of more than three children under age 13, not related to the provider, for more than four hours per day, while operating from a facility that is not a residence.
Center Located in a Residence (CLIR): Centers operating from a residential home and caring for three to twelve children under age 13 must have a CLIR license. CLIRs are subject to CCC regulations, with possible additional local zoning requirements.
Family Child Care Home (FCCH): This is required when caring for two to ten children at one time in your home.
Exemptions include short-term programs, specialized activities (like art or athletics), drop-in care when parents are on-site, certain accredited schools, and parent cooperatives.
Contact local zoning office
Before proceeding, verify that your chosen location complies with local zoning requirements. Obtain written permission from your local zoning and planning office to operate a daycare at your intended address.
For home daycares, contact your HOA or landlord, if applicable, and get written permission to set up a child care facility. DCDEE can't help you without this step.
Attend a pre-licensing workshop
Before you can apply for a license, you must complete a pre-licensing workshop. This workshop covers state laws, health and safety standards, and the application process. Registration is available through the DCDEE website or local offices, and the workshop costs $75 for the full 5-hour session.
Staff-to-child ratios for center-based daycare
North Carolina mandates strict staff-to-child ratios to ensure safety and quality care. The following table outlines the minimum staff-to-child ratio requirements for children in center-based daycare.
| Age group | Staff-to-child ratio | Maximum group size |
|---|---|---|
| Children in single-age groups | ||
| Infants (<1 year) | 1:5 | 10 |
| 1 to 2 years | 1:6 | 12 |
| 2 to 3 years | 1:10 | 20 |
| 3 to 4 years | 1:15 | 25 |
| 4 to 5 years | 1:20 | 25 |
| 5+ years | 1:25 | 25 |
| Children in multi-age groups | ||
| 0 to 3 years | 1:4 | 8 |
| 1 to 3 years | 1:5 | 10 |
| 2 years to 47 months | 1:6 | 10 |
| 4 years to 6 years | 1:9 | 18 |
| 6 year through 12 years | 1:19 | 25 |
Staff-to-child ratios for residential daycare
The table below details the staff-to-child ratios for a residential daycare center with a licensed capacity of 3 to 12 children.
| Age group | Staff-to-child ratio |
|---|---|
| Infants (<1 year) | 1:5 preschool children plus 3 additional school-age children* |
| 1 to 2 years | 1:6 preschool children plus 2 additional school-age children* |
| 2 to 13 years | 1:10 |
| 3 to 13 years | 1:12 |
*"School-age" is any child attending or who has attended a public or private grade school or kindergarten and meets the age requirements outlined in G.S. 115C-364.
Staff-to-child ratios for large residential daycare
The staff-to-child ratios for a residential daycare center with licensed capacity of 13 to 15 children are:
| Age group | Staff-to-child ratio | Maximum group size |
|---|---|---|
| Infants (<1 year) | 1:5 | 10 |
| 1 to 2 years | 1:6 | 12 |
| 2 to 13 years | 1:10 | 15 |
| 3 to 13 years | 1:15 | 15 |
2. Complete required training
All child care providers and staff must meet training and background check requirements:
Pre-service training: North Carolina requires a minimum of 16 hours of pre-service training for new staff, covering health and safety, child development, and emergency preparedness. All staff and directors must complete it within 1 year of employment.
Ongoing training: Providers must complete at least 20 hours of annual in-service training.
CPR and first aid: All staff must maintain up-to-date pediatric CPR and first aid certifications.
3. Prepare the facility
Whether home-based or center-based, your daycare must meet strict health, safety, and space requirements. Adhering to the state's guidelines helps maintain a safe and secure environment for the children in your care.
Space requirements
Centers must provide at least 25 square feet of indoor space per child in activity areas. Outdoor play areas must offer at least 75 square feet per child using the space at one time.
Safety standards
Facilities must be free of hazards, equipped with working smoke detectors, fire extinguishers, and emergency exits. Centers must pass fire, sanitation, and building inspections.
Daycare supplies
Invest in age-appropriate furniture, toys, educational materials, and safe sleep equipment. This includes cribs for infants and cots or mats for older children. To make sure you have everything you need, check out our Ultimate Daycare Supplies List!
4. Submit your application
After completing training and preparing your facility, submit your application to the DCDEE. Required documents include:
Completed application form
Proof of training and certifications
Background screening clearance
Floor plans and site plans
Fire and health inspection certificates
Proof of property ownership or lease
Local zoning and business permit approvals
5. Daycare inspection
Once the DCDEE reviews and accepts your application, a licensing consultant will do a thorough walk-through and inspect your facility to ensure compliance with all regulations. Be ready to demonstrate emergency procedures, daily routines, and staff qualifications.
6. Pay licensing fees
Licensing fees in North Carolina vary by facility type and capacity. Fees are due upon approval and annually for license renewal. The annual fee does not apply to state or public-school operated daycares or to religious facilities in accordance with a notice of compliance.
| Daycare type | Annual fee |
|---|---|
| Family Child Care Homes | $52 |
| Centers (capacity of 0 – 12) | $52 |
| Centers (capacity of 13 – 50) | $187 |
| Centers (capacity of 51 – 100) | $375 |
| Centers (capacity of 101+) | $600 |
All daycares must pay licensing fees online through the North Carolina DHHS payment portal.
7. Write a parent and staff handbook
Create a handbook with clear, written policies covering the following topics:
Hours of operation and holidays
Tuition, fees, and payment policies
Enrollment and withdrawal procedures
Daycare sick policies and immunization requirements
Discipline and behavior management
Emergency and safety protocols
Staff qualifications and training
Daycare menus including meals and snacks
Reporting suspected abuse or neglect
Updating policies
Regularly update your handbook to reflect changes in regulations or operational practices. Take parents' feedback into account when making changes, too. This will help you maintain compliance, keep families informed, and maintain a safe environment for children and staff.
8. Set up your business
Choose your business structure (sole proprietorship, LLC, corporation) and register with the North Carolina Secretary of State. You'll also need to obtain a federal Employer Identification Number (EIN).
Always keep detailed records of attendance, health and immunization, staff qualifications, and financial transactions.
Insurance
To protect your business, invest in a solid insurance policy. This should include general liability, property insurance, and workers' compensation insurance if you have employees. You'll also need commercial auto insurance if you transport children.
Business plan
A comprehensive business plan clearly defines your mission, identifies your target audience, describes your services, and projects your financial outlook. It should cover:
Overview of your business and mission statement
Analysis of the market and assessment of community needs
Description of the services you will provide
Operations plan, including staffing, facility details, and daily schedules
Marketing approach
Financial forecasts and budgeting
Policies and procedures
Management structure and organizational information
Relevant supporting documents, such as licenses, permits, and staff resumes
For specific instructions, read our in-depth guide on How to Create a Daycare Business Plan.
Grants and funding
Instead of taking out a loan or relying on credit, consider applying for daycare grants to help launch your daycare:
Federal programs:
Head Start and Early Head Start
The Child Care Development Fund (CCDF)
Preschool Development Grants Birth through Five (PDG B-5)
State grants:
Early Care & Learning Expansion & Access Grants (up to $125,000)
Child Care Stabilization Grants
North Carolina Pre-K
Curriculum and activities
An effective curriculum fosters children's growth by encouraging learning through play, discovery, and hands-on activities. Structure each day with balanced daycare schedules that incorporate group activities, outdoor play, creative arts, music, story time, quiet periods, and healthy meals.
9. Market your daycare
To attract families to your daycare, use the following marketing strategies:
Build a website and use social media to reach families.
Join TrustedCare to connect with parents searching for childcare in your area.
Network with schools, pediatricians, and community organizations.
Host open houses and tours to showcase your program.
Encourage referrals by offering incentives to families.
Pass out flyers at local businesses, offices, and community centers.
Advertise in local magazines or newspapers.
Use bold, colorful signs to increase visibility.
Check out our Daycare Advertising Ideas guide for more free ways to market your childcare business!
10. Hire staff and grow
If you have more children enrolled than you can handle on your own, you'll need to hire staff. North Carolina also sets specific requirements for daycare directors and teachers in both family child care homes and centers:
Daycare directors:
At least 21 years old
High school diploma or GED at minimum
Complete the North Carolina Early Childhood Administration Credential (Level I, II, or III).
Education:
Associate's degree in early childhood education or related field for Level II
Bachelor's degree in early childhood education, Child Development, or a related field with at least 18 relevant semester hours for Level III
At least 2 years of experience as a director or assistant director of a licensed child care center
Teachers:
High school diploma or equivalent
Staff under 18 years work under the direct supervision of someone 21 or older.
North Carolina Early Childhood Credential (NCECC) or an equivalent qualification
Alternatively, a 2-year degree or higher in any subject with at least 6 semester hours in Early Childhood Education or Child Growth & Development
Lead teachers may need 9 semester hours in early childhood education and 1 year of full-time experience, or an associate's degree with 12 semester hours in early childhood education and 1 year of experience.
Home daycare providers:
At least 21 years old
High school diploma or GED
NCECC or an equivalent qualification
11. Annual license renewal
Maintaining your daycare license in North Carolina requires ongoing compliance with state regulations and regular administrative updates.
All child care providers must renew their licenses annually by submitting updated documentation and paying required fees.
Providers must ensure all staff credentials, background checks, and training remain current for each renewal cycle.
Unannounced inspections
The DCDEE may conduct unannounced inspections at any time to verify ongoing compliance with health, safety, and program standards. By following these requirements, North Carolina ensures that daycare staff are properly vetted, trained, and prepared to provide safe, high-quality care for children.
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.