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Getting Started: The Path to Opening Your Child Care Business

A guide for new providers covering essential steps, requirements, and resources to start a child care business in California.

Updated today

Starting a child care business in California involves several important steps, from planning to licensing. We've gathered essential resources to help you begin your journey as a child care provider.

Understanding License Types

Before you begin, determine which license type fits your goals:

  • Small Family Child Care Home: Care for up to 8 children in your home

  • Large Family Child Care Home: Care for up to 14 children in your home

  • Child Care Center: Facility-based care with different age-specific licenses (infant, preschool, school-age)

Licensing Process Overview

The path to licensure typically includes:

  1. Attending a mandatory orientation (online or in-person)

  2. Completing required training and background checks

  3. Preparing your home or facility to meet health and safety standards

  4. Submitting your application and fees

  5. Passing your pre-licensing inspection

Training Requirements

All child care providers must complete specific training:

Family Child Care Home requirements:

  • 16 hours of Pediatric Health & Safety training from an EMSA-approved vendor including:

    • Preventive Health Practices

    • Pediatric CPR certification

    • Pediatric First Aid certification

  • Negative TB test

  • Criminal background clearance for all adults in the home

Child Care Center staff requirements:

  • Early childhood education units (varying by position)

  • Experience in licensed child care settings

  • Background checks and health screenings

  • Additional specialized training for infant care or administration

Funding Your New Child Care Business

Starting a child care business requires financial planning. Explore these funding options:

  • Child Care Initiative Project (CCIP): Provides training, technical assistance, and some startup resources

  • Small Business Loans: Including SBA microloans and CDFI loans designed for child care

  • First 5 Commission Grants: County-specific funding opportunities for early childhood services

  • Tax Incentives: Special deductions available for home-based providers

Business Planning and Setup

A solid business plan helps ensure your success:

  • Create a detailed business plan with financial projections

  • Set appropriate rates based on your market and costs

  • Develop policies for enrollment, payment, and operations

  • Consider insurance needs (liability, property, workers' comp)

  • Establish recordkeeping systems for attendance, finances, and licensing

Finding Help and Support

You don't need to navigate this process alone:

How can I get help opening a family child care home?
Contact the Child Care Initiative Project (CCIP) associated with your local Resource & Referral agency. CCIP will help you set up your family child care home, understand licensing requirements, and complete your application.

Who can help me plan my child care center?
Your local Resource & Referral agency can connect you with resources, training, and technical assistance specifically for center-based care.

Where can I find peer support?
Connect with established providers through professional associations like the California Child Care Providers Network or your local provider group.

Marketing Your New Child Care Business

Once licensed, you'll need to attract families:

  • Create a complete provider profile on MyChildCarePlan.org

  • Develop simple, professional marketing materials

  • Establish connections with local schools and businesses

  • Consider a website or social media presence to showcase your program

Common Questions for New Providers

Are Tuberculin (TB) tests required?
Yes, all providers must complete a TB test as part of the licensing application process. This applies to both family child care home providers and all staff in child care centers.

Can I open a child care business if I rent my home?
Yes, but you must notify your landlord. For family child care homes caring for more than the standard capacity limit, formal landlord consent is required using form LIC 9149.

How long does the licensing process take?
Typically 2-6 months from orientation to license issuance, depending on how quickly you complete requirements and the current workload of your regional licensing office.

What are the total costs to get licensed?
Costs include orientation fees, application fees, background check fees for all required individuals, training costs, and any facility modifications needed to meet requirements.

Additional Resources


Ready to take the next step? Contact your local Resource & Referral agency for personalized assistance with starting your child care business.

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