Written by

Jennifer Carlson

July 14, 2025

Edited by

Kristen Cramer

Fact-checked by

Tara Farmer

How to open a daycare in Texas

Wondering how to start a daycare center in Texas? Follow this step-by-step guide that covers best practices and current state requirements. Opening a daycare in Texas can be a rewarding endeavor, but it requires careful planning, compliance with state regulations, and a clear understanding of the licensing process.

1. Pick your daycare type

Texas offers several types of childcare licenses, each with specific requirements. The type of license you need depends on the number of children you plan to serve, their ages, and whether you're providing care in your home or a separate facility:

• Licensed child care centers: 7 or more children in a facility outside the home

• Home daycares:

  • Licensed child care home: 7 to 12 children in the caregiver’s home

  • Registered child care home: Up to 6 children (plus 6 school-age children after school) in the caregiver’s home

  • Listed family home: Up to 3 unrelated children in the caregiver’s home

Application

If the center you have in mind requires a license, follow these steps when applying:

• Create an online account with Texas Health and Human Services.

• Submit your application and pay the required fees.

• For home-based care, submit your application online; for centers, submit to your local childcare regulation office.

• After a review, you’ll receive an operation number, which becomes your license number once approved.

2. Meet Texas daycare requirements

Each license type has its own set of daycare requirements, but generally, you must:

• Be at least 18 or 21 years old (depending on license type).

• Have a high school diploma or GED (for most licenses).

• Complete a licensing pre-application course.

• Pass background checks for yourself and any staff.

• Obtain pediatric first aid and CPR certification.

• Secure liability insurance.

• Meet all Texas Health and Human Services standards.

For center-based programs, the director must also meet specific educational and experience requirements.

Education & training

Texas requires all childcare providers to have at least a high school diploma or equivalent. Additionally, all providers, regardless of their role, need to complete 24 hours of pre-service training, including 8 hours before being given responsibility for children. This pre-service training covers developmental stages, supervision, and safety.

Childcare providers must also undergo annual training, with directors needing at least 30 hours of training relevant to the ages of the children they care for.

3. Research & planning

Spend several days researching other daycare centers and in-home daycare businesses in your area. Examine their pricing, daily schedules, and policies for emergencies, extreme weather, and late pick-ups. Observe where they advertise and what methods they use to attract families.

If you feel comfortable, reach out to local daycare owners for advice or insights. Many early childhood educators are open to networking, especially if you’re not a direct competitor. These conversations can provide valuable tips and help you better understand local licensing requirements.

Make a business plan

A detailed daycare business plan helps guide your daycare’s operations and growth. It should include the following elements:

• Executive summary

• Description of your business

• Market analysis and research

• Legal organization or structure

• Description of services you offer

• Your strategy for marketing

• Safety features and design of the location

• Financial plans and estimates

• Funding request

• Risk analysis

• Timeline

• Growth strategy

Set pricing

Once you’ve researched rates at comparable daycare centers, you can establish your own pricing. On average, child care in Texas costs $500 to $1,900 per month, with rates varying based on location and the child’s age. The younger the child, the higher the cost tends to be.

Family or in-home daycares often charge less than childcare centers because their overhead costs are lower. Many parents prefer in-home daycares because they have fewer kids than large centers, allowing for more one-on-one care.

Choose a name

Select a daycare name that captures your mission and resonates with local families. Aim for something straightforward, memorable, and easy to say. Names such as “Little Scholars” or “Bright Beginnings” suggest a nurturing and educational environment, making them attractive to both parents and children.

Before making your final decision, ensure the name isn’t already taken or trademarked. It’s also a good idea to secure a matching website domain and social media handles, which will help families easily find and remember your daycare online.

Marketing

To attract families, build a strong online presence with a professional website and active social media profiles. Being visible and engaged online helps you build trust and fill enrollment spots more easily. Consider these daycare marketing strategies to promote your business:

• Share photos of your facility, testimonials from satisfied parents, and details about your programs on your website and social media.

• Join TrustedCare to reach more potential clients and connect with local families.

• Encourage happy clients to refer your daycare to others since word-of-mouth recommendations are highly effective.

• Get involved in your community by attending events, partnering with local schools, or joining parenting groups to increase your visibility and credibility.

4. Prepare your facility

Ensure your home or center meets all health, safety, and zoning requirements. This includes childproofing, appropriate furnishings, and safe outdoor play areas. Be ready for state inspections as part of the licensing process.

Space requirements

Each child must have at least 30 square feet of usable indoor space, excluding restrooms, kitchens, hallways, and storage areas. Outdoor play areas must provide at least 80 square feet per child, with safe, age-appropriate equipment and a minimum four-foot fence surrounding the play area.

You must space out cribs for infants at least 3 feet apart to ensure a safe sleeping environment. Facilities that care for infants and toddlers should provide additional space for cribs, crawling, and play.

Child-to-staff ratios

The required child-to-staff ratios for Texas daycare centers vary by age group. These ratios help ensure children receive appropriate supervision and care at every developmental stage. Texas also sets maximum group sizes for each age group, which centers must follow in addition to these ratios.

Health and safety

You must keep all daycare buildings, grounds, and equipment in good repair to protect children’s health and safety. This includes regular cleaning, prompt repair of hazards, and safe storage of cleaning supplies and toxic substances. Facilities must pass a sanitation inspection and maintain records of inspections and corrections.

Make sure your daycare meets these specific requirements:

• Electrical outlets accessible to children must have childproof covers or be safety outlets.

• Install smoke detectors, carbon monoxide detectors, fire extinguishers, and sprinkler systems throughout the facility.

• Post emergency telephone numbers by a phone accessible to all staff.

• Maintain all playground equipment in safe condition, free from sharp edges or dangerous protrusions.

• Fence off pools, ponds, or other water hazards deeper than 10 inches with at least a 4-foot barrier.

• Children must show proof of required vaccinations before entry, in accordance with Texas state vaccine requirements.

• You must establish a daycare sick policy, including exclusion for fever and guidelines for administering medication. Keep medications in their original containers and properly labeled.

• Staff must have training in pediatric first aid and CPR.

• All staff and regular volunteers must pass background checks.

Other facility policies

Animals are not allowed in food preparation, childcare, or play areas when children are present or if there is any risk to children. Supervise playgrounds at all times, maintaining the same staff-to-child ratios required in classrooms. The use of alcohol, drugs, tobacco, or e-cigarettes is prohibited on the premises.

5. Get funding

Securing funding is a crucial step when starting a daycare, as initial costs can be significant. Fortunately, Texas offers a range of grants and financial assistance programs designed to help new providers with expenses like startup costs, equipment, and staff training.

Providers can explore grants from federal sources such as the U.S. Office of Child Care, which supports many licensed programs nationwide.

Grants to open a daycare in Texas

Even if you’re opening a small operation, upfront costs can add up quickly. The Texas Workforce Commission (TWC) is a primary source for grant opportunities, including awards of up to $25,000 for eligible childcare programs to help with launch expenses.

Additionally, the Texas Rising Star program and various local and private foundations offer incentives and financial support for providers who meet certain quality standards. Exploring these resources can help offset your initial investment and support your daycare’s growth and quality improvement efforts.

The Texas Department of Agriculture's Child and Adult Care Food Program (CACFP) reimburses childcare centers and home daycare providers for part of the cost to serve approved meals and snacks to children in their care.

6. Maintain compliance

Once licensed, maintain compliance by renewing your license as required (every 1 to 2 years, depending on your license type), keeping up with training, and adhering to all state regulations. Regular inspections and ongoing staff development are essential for continued success.

Insurance & permits

In Texas, all licensed daycare centers, registered child care homes, and listed family homes must carry at least $300,000 in liability insurance to cover injuries or accidents involving children in their care since homeowners insurance does not cover daycare-related incidents. Providers must submit proof of coverage annually to the state.

Additional recommended coverages include general liability, professional liability, commercial auto (if transporting children), and abuse and molestation coverage. Some exceptions to the liability insurance requirement exist, but providers must notify parents in writing if they qualify for an exemption.

FAQs about starting a daycare in Texas

What kind of training or education do I need to run a daycare in Texas?

To run a daycare in Texas as a director, you must be at least 18 to 21 years old, have a high school diploma or equivalent, and meet one of several education and experience combinations:

• Bachelor’s degree (with child development and management credits) + 1 year experience

• Associate degree (child development or related field) + 2 years' experience

• 60 college credits (with child development or management) + 2 years' experience

• Child care administrator’s certificate or credential + 2 years' experience

• Child Development Associate (CDA) or Certified Child Care Professional + 2 years' experience

• 9 college credits in child development and 9 in management + 3 years' experience

How do I find and hire qualified staff?

You should look for staff with experience in childcare and required certifications, such as pediatric first aid and CPR. Conduct thorough background checks and verify references to ensure safety and compliance with state standards.

What business structure should I choose for my daycare?

Many daycare owners operate as sole proprietors, limited liability companies (LLCs), or corporations. Small, one-person home daycares may only require a sole proprietorship, but LLCs help protect the assets of slightly larger operations.

Consider consulting with a legal or business advisor to choose the structure that best protects your assets and meets your business goals.

How can I keep up with changes in regulations or best practices?

Subscribe to updates from Texas Health and Human Services, participate in industry workshops, and network with other providers to stay informed about new rules and best practices in early childhood care.