How to Start a Licensed Daycare in Texas
Starting a licensed daycare in Texas is a meaningful business opportunity — but the licensing process requires careful planning. This guide walks through every step from choosing your licence type to your first enrolled family, with realistic costs and timelines.
Step 1: Choose Your Licence Type (Week 1–2)
Texas licenses three types of childcare operations:
• Licensed Child Care Center (LCCC): Cares for 7 or more children unrelated to the provider. Requires a facility that meets commercial or residential-converted specifications.
• Licensed Child Care Home: Cares for 7–12 children in the provider's home.
• Registered Child Care Home: Cares for up to 6 children in the provider's home. Fewer requirements, faster approval.
Most new providers start as a Registered Home and expand to a Centre or Licensed Home as their business grows. Choose based on how many children you plan to serve.
Step 2: Complete Pre-Application Requirements (Week 2–4)
Before submitting an application, you must complete:
• Caregiver Background Check: Submit fingerprints through the HHS Background Check Unit. Costs approximately $50 per person.
• Pre-licensing Orientation: A free online course through the Texas HHS Child Care Licensing portal. Completion is required before your application is accepted.
• Health and Safety Training: Directors and certain staff must complete 24+ hours of training including pediatric first aid, CPR, and child development. Costs $100–$300 depending on courses.
Step 3: Prepare Your Facility (Week 2–8)
Your facility must meet Texas Minimum Standards before a licence will be issued.
• Indoor space: At least 30 square feet per child in activity areas.
• Outdoor space: At least 80 square feet per child in outdoor play areas.
• Fire safety: Compliant exits, fire extinguishers, and smoke detectors. A fire inspection may be required.
• Health requirements: Accessible handwashing sinks, proper diaper changing stations, and adequate bathroom facilities.
• Insurance: You must carry liability insurance. Budget $1,500–$3,000/year for a centre.
Facility renovation and setup costs vary widely — plan for $5,000–$30,000+ depending on the scope of work.
Step 4: Submit Your Application (Week 4–8)
Submit your application through the Texas HHS Child Care Licensing portal at hhs.texas.gov. The application fee is $35 for a Registered Home and $50 for a Licensed Centre.
Your application packet must include:
• Completed application form
• Proof of background check completion
• Proof of pre-licensing orientation
• Proof of first aid and CPR certification
• Facility floor plan
• Signed Director Designation (if applicable)
Processing time after submission: 2–6 weeks.
Step 5: Pass Your Licensing Inspection (Week 8–16)
An HHS licensing representative will schedule an on-site inspection. They will evaluate your facility against the Texas Minimum Standards.
Common reasons for delays:
• Missing documentation
• Facility does not meet space requirements
• Equipment not yet installed or approved
Use the daycare inspection checklist in our Guides section to self-audit before your visit. Most issues that fail inspections are preventable.
Step 6: Set Up Your Operations (Ongoing)
Once licensed, you can begin enrolling children. Before your first family starts:
• Write your Parent Handbook covering fees, policies, and procedures
• Set up a payroll and accounting system
• Open a dedicated business bank account
• Purchase appropriate insurance (general liability + professional liability)
• Set your tuition rates. Average Texas daycare tuition: $600–$1,400/month depending on age group and location.
• List your daycare on ZuKeepr to connect with local families immediately
Total Costs and Timeline Summary
• Background checks: ~$50–$200
• Training courses: ~$100–$300
• Application fee: $35–$50
• Facility setup: $5,000–$30,000+
• Insurance (first year): $1,500–$3,000
• Total startup range: $7,000–$35,000+
• Timeline from start to first child enrolled: 3–6 months (typical)
Texas HHS resources: hhs.texas.gov/providers/long-term-care-providers/child-care-licensing
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