How to Start a Daycare in Colorado (2026)

Last updated: February 25, 2026

Colorado has a growing demand for quality childcare, and the state has invested heavily in early childhood education through the Colorado Department of Early Childhood (CDEC). Whether you are planning a home-based family childcare or a larger center, you will need a state license if you care for two or more children who are not related to you.

Colorado’s licensing process is thorough, covering background checks, training requirements, facility standards, and staff-to-child ratios. This guide walks you through every step, cost, and requirement to legally open and operate a daycare in Colorado.

Daycare Requirements in Colorado at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Colorado Secretary of State	$50	Instant (online)
Federal EIN	IRS	Free	Immediate (online)
Childcare License	CDEC (Dept. of Early Childhood)	Varies by type/capacity	3-6 months
Background Checks (all staff)	CBI / FBI	$40-$75/person	2-4 weeks
CPR & First Aid Certification	Red Cross / AHA	$50-$100/person	1 day
Pre-Licensing Training	CDEC-approved provider	Free-$200	Varies
Fire Inspection	Local fire department	Varies	1-3 weeks
Zoning Approval	City/county planning dept.	Varies	2-8 weeks
General Liability Insurance	Private insurer	$1,000-$3,000/year	Same day
Workers’ Compensation	Private insurer	Varies by payroll	1-3 days

How to Start a Daycare in Colorado (Step by Step)

Step 1: Choose Your Daycare Type

Colorado licenses several types of childcare facilities through the Colorado Department of Early Childhood (CDEC):

Family Childcare Home: Care for up to 6 children (including your own under age 12) in your home. Lower startup costs but limited income potential.
Large Family Childcare Home: Care for 7-12 children in your home. Requires at least one additional caregiver.
Childcare Center: Care for more than 12 children in a commercial or dedicated facility. Higher startup costs but greater income potential.
Preschool/School-Age Program: Programs for specific age groups, often part-day.

When is a license required? In Colorado, a license is required if you care for two or more children who are not related to you. Exempt situations include babysitting in the child’s own home and care by relatives.

Step 2: Form Your Business Entity

Step 3: Complete Background Checks

Colorado requires comprehensive background checks for everyone involved with your daycare:

Who must be checked: The applicant/owner, all staff, all household members age 18+ (for home-based providers), and regular volunteers
Type: Fingerprint-based criminal history check through CBI (Colorado Bureau of Investigation) and FBI
Cost: Approximately $40-$75 per person
Processing time: 2-4 weeks
Disqualifying offenses: Certain felonies and misdemeanors involving children, violence, sexual offenses, and drug offenses are automatic disqualifiers

For home-based providers, all persons living in the home age 18 and older must complete a Person In Home Authorization form and pass a background check.

Step 4: Complete Required Training

Colorado requires specific training before you can be licensed:

Pre-licensing orientation: Required before submitting your application
CPR and first aid certification: Required for all caregivers. Must be pediatric CPR for infant/toddler care. Cost: $50-$100 per person through Red Cross or American Heart Association.
Universal precautions/bloodborne pathogens training: Required for all staff
Medication administration training: Required if your facility will administer medication
Ongoing training: 15 hours of continuing education per year for all caregivers

Step 5: Prepare Your Facility

Your facility must meet Colorado’s licensing standards:

Indoor space: Minimum 35 square feet of usable floor space per child
Outdoor play area: Must provide outdoor play space or demonstrate access to a nearby park or playground
Safety: Smoke detectors, fire extinguishers, carbon monoxide detectors, childproofing, and locked storage for hazardous materials
Sanitation: Handwashing stations, diaper changing area (if applicable), and food preparation areas must meet health standards
Fire inspection: Must pass a fire safety inspection from your local fire department
Zoning: Verify that your location is zoned for childcare use, especially for home-based providers

Step 6: Apply for CDEC License

Submit your application through the CDEC Provider Hub portal:

Create an account in the Provider Hub
Complete the online application for your facility type
Pay the nonrefundable application fee (varies by facility type and capacity)
Submit all required documentation (background checks, training certificates, floor plans, policies)
Schedule and pass your licensing inspection
Receive your childcare license

The entire process typically takes 3-6 months from application to license.

Step 7: Get Business Insurance

General liability insurance: Essential for daycare operations. Covers injury claims, property damage, and negligence. Typical cost: $1,000-$3,000/year.
Professional liability (abuse & molestation coverage): Protects against allegations of improper care. Often required by licensing.
Workers’ compensation: Required if you hire any employees in Colorado.
Commercial property insurance: If you lease or own a separate facility.

Cost to Start a Daycare in Colorado

Item	Cost	Notes
LLC Formation	$50	Colorado Secretary of State
EIN	Free	IRS online application
CDEC License Application	$50-$500+	Varies by facility type and capacity
Background Checks	$40-$75/person	CBI + FBI fingerprint check
CPR/First Aid Training	$50-$100/person	Required for all caregivers
Pre-Licensing Training	Free-$200	Required before application
Fire Inspection	$0-$200	Varies by jurisdiction
Facility Preparation	$1,000-$10,000+	Safety equipment, childproofing, furniture, supplies
General Liability Insurance	$1,000-$3,000/year	Daycare-specific policy
Workers’ Comp (if hiring)	Varies	Based on payroll and classification
Periodic Report (annual)	$25/year	Required to keep LLC active

Estimated total startup cost: $3,000-$15,000+ (home-based) or $15,000-$75,000+ (center-based, excluding facility lease)

Related Colorado Business Guides

← Back to all Colorado business guides

Frequently Asked Questions

Do I need a license to run a daycare in Colorado?

Yes, if you care for two or more children who are not related to you. Colorado requires a childcare license through the Colorado Department of Early Childhood (CDEC). Exempt situations include babysitting in the child’s own home and care provided by relatives.

How long does it take to get a daycare license in Colorado?

The licensing process typically takes 3-6 months from application to approval. This includes completing background checks (2-4 weeks), required training, facility preparation, and passing your licensing inspection.

How much does it cost to start a home daycare in Colorado?

A home-based family childcare typically costs $3,000-$15,000 to start, including LLC formation ($50), licensing fees, background checks, training, childproofing, supplies, and insurance. Center-based facilities cost significantly more due to lease costs and more extensive build-out requirements.

What are the staff-to-child ratios in Colorado?

Colorado sets specific staff-to-child ratios based on age group. Family childcare homes can care for up to 6 children total. Large family homes can care for 7-12 children with at least two caregivers. Childcare centers must maintain ratios that vary by age – younger children require more staff per child.

What background checks are required for daycare staff in Colorado?

All staff, household members age 18+ (home-based), and regular volunteers must pass CBI and FBI fingerprint-based criminal history checks. Certain felonies and offenses involving children, violence, or drugs are automatic disqualifiers. Checks cost $40-$75 per person.

What training is required to open a daycare in Colorado?

You must complete pre-licensing orientation, obtain CPR and first aid certification (pediatric CPR for infant/toddler care), and complete universal precautions training. Ongoing requirements include 15 hours of continuing education per year for all caregivers.

More Colorado Business Guides

About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

Learn more about our research process