How to Start a Daycare in Oregon (2026)

Last updated: April 29, 2026

Oregon’s child care licensing system was reorganized in 2023, when HB 3073 split the Office of Child Care out of the former Early Learning Division and created a new cabinet-level agency: the Department of Early Learning and Care (DELC). If you’re working from older guides or training data, anything referring to “Office of Child Care under the Employment Department” or “Early Learning Division” is out of date – DELC is now the licensing, subsidy, and quality-rating authority for the entire system. The substantive licensing rules under ORS 329A continue, but the agency, portal addresses, and staff have changed.

Two more 2026 changes that materially affect new operators: First, the Spark Quality Rating and Improvement System is sunsetting its five-star portfolio rating on June 30, 2026 – any program seeking a new or higher star rating must postmark a portfolio by that date. After July 1, 2026, ratings become “historical” and Spark transitions to a goal-setting / Quality Improvement Cycle model. Second, the Employment Related Day Care (ERDC) subsidy reimbursement rates moved to a cost-based model effective January 1, 2026 – a meaningful increase for many rural providers. New Certified Family rules also took effect July 1, 2025, adding trauma-informed care training and tightening infant/toddler limits.

Daycare Requirements in Oregon at a Glance

Requirement	Agency	Cost (2026)	Timeline
LLC Articles of Organization	Oregon Secretary of State	$100	2-3 business days online
DELC Registered Family (RF) License	DELC Office of Child Care	No license fee; $50-$100 application	Up to 10 children; 60-120 day process
DELC Certified Family (CF) License	DELC Office of Child Care	No license fee; ~$200 application	Up to 16 children; 90-180 day process
DELC Certified Center (CC) License	DELC Office of Child Care	Application + plan review; varies by capacity	Capacity by floor space + staff; 90-180 day process
DELC Outdoor Nature-Based (ONB) License	DELC Office of Child Care	Application + plan review; varies	Available since 2021; outdoor nature/farm setting
Central Background Registry (CBR) Enrollment	DELC CBR	Per-applicant fee (typically $35-$75 for fingerprints + processing)	30-90 days; required for owner, all staff 18+, household members in family homes
Pre-Licensure Training (Oregon Registry Online)	DELC / Oregon Registry Online (myORO)	$0-$200 depending on courses	Before license issuance
Pediatric CPR/First Aid Certification	American Red Cross / American Heart Association	$70-$120 per person	Required for all care providers; biennial renewal
Local Fire and Life Safety Inspection	City/county Fire Marshal	$50-$300	Before license issuance
Local Sanitation Inspection (centers)	County Environmental Health	$100-$400	Before license issuance for centers
Frances Online Registration (UI + Paid Leave Oregon)	Oregon Employment Department	Free	If hiring any employees
Workers’ Compensation Insurance (NCCI 9059)	SAIF Corporation or private insurer	2-4% of payroll typical	Required from first hire
General/Professional Liability Insurance	Private insurer	$800-$3,000/year for $1M policy	Required by DELC for licensed care
Portland Business License Tax	Portland Revenue Division	2.6% net income; $100 minimum	If operating in Portland
Multnomah County Business Income Tax	Portland Revenue Division	2.0% net income; $100 minimum	If operating in Multnomah County

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

Step 1: Choose Your DELC License Type

Oregon’s four licensing pathways under ORS Chapter 329A and OAR Chapter 414:

License Type	Setting	Capacity	Typical Operator
Registered Family (RF)	Provider’s residence	Up to 10 children (with sub-limits on infants/toddlers)	Single provider in own home; lower regulatory bar than CF
Certified Family (CF)	Provider’s residence	Up to 16 children; minimum capacity for first cert is typically 12	Established family operator scaling beyond RF; can charge ERDC subsidy at higher rate
Certified Center (CC)	Commercial building (or non-residential space)	Capacity set by usable floor space, classroom configuration, and staffing – no fixed cap	Standalone center, employer-sponsored center, school-age center (SC subtype, no night care)
Outdoor Nature-Based (ONB)	Outdoor woodland, farm, or nature setting	Smaller groups; specific outdoor facility standards	Forest school / farm school operators (license type added 2021)

Most new operators start with Registered Family, scale to Certified Family after demonstrating 1,500+ operating hours, and may eventually open a Certified Center as their second site. Outdoor Nature-Based is a niche specialty – significant outdoor curriculum development required before licensure.

Step 2: Enroll on the Central Background Registry

Every adult who will be present in a child care setting in Oregon must be enrolled on the Central Background Registry (CBR). This includes:

• The provider/owner
• All paid staff age 18+
• All volunteers age 18+ who have unsupervised contact with children
• All household members age 18+ (in family child care homes)

The CBR processes:

• Oregon State Police criminal history
• FBI fingerprint-based national criminal history check
• DHS Child Protective Services records review
• National Sex Offender Public Website check
• Out-of-state child abuse and neglect registry checks (if applicant has lived elsewhere in past 5 years)

Apply through my.oregonregistryonline.org (myORO). Allow 30-90 days for processing – applicant cannot be present in care or count toward ratios until enrolled. The application fee covers fingerprinting and processing; specific fee amounts are posted on the CBR Rules document. Enrollment is renewable; check DELC for current renewal cadence.

Step 3: Complete Required Training Through Oregon Registry Online (myORO)

Pre-licensure training requirements vary by license type but typically include:

• Introduction to the Child Care Profession (Set One)
• Recognizing and Reporting Child Abuse and Neglect (mandatory reporter training)
• Foundations for Learning (developmentally appropriate practice)
• Pediatric CPR and First Aid (American Red Cross, American Heart Association, or DELC-approved equivalent)
• Trauma-Informed Care (added July 1, 2025 for Certified Family providers)
• Infant/Toddler-Specific Training: Additional 20 hours for CF providers caring for more than 4 children under 24 months of age, plus a second qualifying caregiver who meets specified requirements

Track training in your myORO Professional Development Account – DELC verifies your records during licensing. Ongoing training requirements continue post-licensure (typically 15-30 hours/year depending on license type and Spark participation).

Step 4: Application, Inspections, and Pre-Licensing Visit

Submit your DELC application packet. The packet differs by license type but typically includes:

• Application form
• Floor plan and outdoor play area diagram
• Emergency preparedness plan
• Discipline policy
• Health and immunization policies
• Operating hours and program description
• List of all adults requiring CBR enrollment
• Liability insurance certificate

DELC then schedules:

• Pre-licensing visit by a DELC Compliance Specialist
• Local Fire and Life Safety inspection (varies by city/county)
• Local Environmental Health sanitation inspection (for Certified Centers)
• Building Code compliance review (for new construction or change of use)

Realistic timeline from first application to issued license: 90-180 days, depending on license type, facility readiness, and DELC backlog. Plan accordingly when leasing space – paying rent for 4-6 months before you can legally enroll children is the most common cash-flow trap for new center operators.

Step 5: Staff-to-Child Ratios and Group Size

Certified Center (CC) Ratios — OAR 414-300-0130

Age Group	Staff:Child Ratio	Maximum Group Size
Infants (under 13 months)	1:4	8
Toddlers (13 months – under 36 months)	1:4	12
Preschoolers (36 months – kindergarten entry)	1:10	20
School-age (kindergarten and older)	1:15 (typical)	30 (typical)

Certified Family (CF) Capacity Rules — OAR 414-350-0120

• Maximum 16 children at any time (down from earlier rules)
• If first applying as CF and qualifying based on Registered Family experience, capacity is initially capped at 12 children; provider must complete 1,500 hours operating at 12-child capacity before applying to expand to 16
• If more than 12 children in care, groups must be physically separated
• If certified for >12 and caring for more than 8 infants/toddlers, written plan required to limit infant/toddler group size to 8
• Provider must be on-site and actively caring for children at least 2/3 of weekly operating hours or 40 hours, whichever is less, when operating above 12 children
• All children in the home under age 13 (including the provider’s own children, foster children, and other staff/caregiver children) count toward the ratio

Step 6: Insurance and Workers’ Compensation

Liability insurance for licensed child care: typical $1M general/professional liability runs $800-$3,000/year. DELC verifies coverage during licensure.

Workers’ compensation required from the first paid employee through SAIF Corporation or any private licensed carrier. NCCI class code 9059 (Day Nursery / Kindergarten / Day Care Center) typically runs 2-4% of payroll for licensed daycares. Penalty for operating uninsured: $1,000 minimum civil penalty plus $250/day plus personal liability for any injury.

WBF Assessment: 1.8 cents per hour worked for 2026, split 0.9 ¢ employer / 0.9 ¢ employee, reported quarterly to the Department of Revenue.

Step 7: Subsidy Programs and Quality Rating

ERDC (Employment Related Day Care) — Cost-Based Model from January 1, 2026

The Employment Related Day Care subsidy is Oregon’s primary state-funded child care subsidy for working families. Historic reimbursement rates were market-based (set to a percentile of regional market prices), which produced rates significantly below actual provider cost in rural and high-cost areas. Effective January 1, 2026, ERDC moved to a cost-based reimbursement model – rates are now anchored to the actual cost of providing care, calculated through the DELC cost model. Most rural providers and many infant/toddler programs see meaningful rate increases.

Enroll as an ERDC provider through DELC if you want to serve families on the subsidy. Spark-rated programs typically receive higher reimbursement tiers than non-rated programs.

Spark — Five-Star Portfolio System Sunsetting June 30, 2026

Spark (Oregon’s Quality Rating and Improvement System) launched in 2014 and used a five-star portfolio-based system to rate program quality. Key change: the portfolio star-rating system is being retired:

• Programs may submit portfolios for new or higher star ratings through June 30, 2026 (postmark date)
• After July 1, 2026, no new ratings will be issued
• Existing star ratings become historical ratings showing each program’s highest historic level
• Spark transitions to a Quality Improvement Cycle model with individualized goal-setting and Quality Improvement Specialist support

If you’re targeting a star rating before the deadline, work with your local Child Care Resource and Referral (CCR&R) agency – they coordinate Spark coaching and portfolio submissions. After July 1, your CCR&R remains your primary quality-improvement contact.

Preschool Promise + Multnomah County Preschool for All

Preschool Promise is Oregon’s state-funded preschool program for 3- and 4-year-olds in households below 200% of federal poverty level. Run by DELC, contracts go to qualifying centers, family providers, and Head Start grantees.

In Multnomah County, the locally funded Preschool for All (PFA) program (separate from the personal income tax of the same name) provides free preschool to participating families. PFA is administered by Multnomah County DCHS, not DELC; it operates in addition to Preschool Promise. Participating Multnomah providers can layer PFA, ERDC, and Preschool Promise revenue.

Oregon Child Care Market: Where the Demand Is

• Portland Metro: Strong demand for infant care (significant waitlists), bilingual programs, and tech-employer-adjacent centers in Hillsboro, Beaverton, and Lake Oswego. Multnomah Preschool for All funding makes county licensed providers in Portland especially competitive
• Bend (Deschutes County): Fastest-growing market – daycare capacity has not kept pace with population growth. Long waitlists across all age groups
• Eugene/Corvallis: University-driven demand from faculty and graduate-student families. UO and OSU both maintain on-campus child care alongside community providers
• Salem: State-employee-driven demand stable but underserved; limited center capacity in surrounding suburbs
• Coastal and rural east: Severe child care deserts – many counties have fewer than one slot per 5-7 children needing care. ERDC’s 2026 cost-based model is intended specifically to make rural family child care viable; this is the strongest opportunity for new RF/CF operators

Oregon Daycare Cost to Start (Realistic 2026 Range)

Cost Category	Registered Family (Home, 10 children)	Certified Center (Small, 30-50 children)
LLC formation + EIN + first annual report	$200	$200
DELC application fees	$50-$100	$200-$500
CBR enrollments (provider + 1-2 helpers + household)	$150-$300	$300-$1,500 (more staff)
Pre-licensure training (Oregon Registry Online)	$100-$300	$200-$1,000
Pediatric CPR/First Aid (provider + staff)	$120-$240	$500-$1,500
Fire/life safety + sanitation inspections	$100-$400	$200-$800
Building modifications / ADA / fire egress	$0-$5,000	$50,000-$300,000+
Equipment + furniture + supplies (initial)	$2,000-$8,000	$30,000-$100,000
Liability + professional insurance	$800-$1,500/year	$2,000-$6,000/year
Workers’ comp (NCCI 9059, 2-4% payroll)	$0-$2,000/year (if helpers)	$10,000-$25,000/year
Pre-opening rent during 90-180 day licensing	$0-$3,000 (home)	$15,000-$60,000 (commercial)
Marketing / website / enrollment	$300-$1,000	$3,000-$15,000
Realistic Year 1 Total	$3,820-$22,440	$112,000-$510,500

Oregon Daycare Traps That Catch New Operators

1. Counting on the Spark portfolio star rating after the June 30, 2026 deadline. If your business plan depends on hitting a 4- or 5-star Spark rating to compete for ERDC families and command premium rates, get the portfolio in before the deadline. After July 1, 2026, no new portfolio ratings – you’ll have to rely on the Quality Improvement Cycle process and historical ratings of competitors.

2. Underestimating the licensing timeline. 90-180 days is realistic; some centers wait longer. Lease commitments before licensing approval are the #1 cash-flow killer for new center operators. Negotiate a delayed-rent or licensing-contingency clause if possible.

3. Forgetting CBR enrollment for household members in family child care homes. A Registered Family or Certified Family provider’s spouse, adult children, or roommates living in the home all require CBR enrollment. Missing one delays licensure even if the provider’s own background is clean.

4. Misclassifying assistant teachers as 1099 contractors. Common in family child care to “1099” a part-time afternoon helper. Oregon’s BOLI, Workers’ Comp, Employment Department, and Department of Revenue all use ABC-like tests stricter than the IRS. A helper following your schedule, using your equipment, in your facility is an employee. Misclassification triggers Paid Leave Oregon, UI, workers’ comp, TriMet, and tax exposure.

5. Ignoring infant/toddler ratio sub-rules in Certified Family. A CF home of 16 children with too many under 24 months violates the rule and triggers a DELC corrective action. Plan your enrollment mix carefully.

6. Operating in Multnomah County without registering for the Portland Business License Tax + MCBIT. Daycare revenue is subject to both, with $100 minimums on each ($200 total even on a small operation). Filed annually with the Oregon return through Portland Revenue Division.

Related Oregon Business Guides

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Frequently Asked Questions

What are the four Oregon daycare license types?

Oregon DELC issues four license types under ORS 329A: Registered Family (RF) – in-home, up to 10 children; Certified Family (CF) – in-home, up to 16 children with stricter standards and infant/toddler training; Certified Center (CC) – commercial building, capacity set by usable floor space and staffing; and Outdoor Nature-Based (ONB) – outdoor woodland or farm-based programs (license type added in 2021). Most new operators start with RF and scale to CF or CC over time.

What is the Central Background Registry and who has to enroll?

The Central Background Registry (CBR) is Oregon’s statewide background-check system for child care. Every adult who will be present in licensed care must enroll: the provider, all paid staff age 18+, all volunteers 18+ with unsupervised access to children, and all household members 18+ in family child care homes. Processing includes Oregon State Police, FBI fingerprint, DHS Child Protective Services, sex offender registry, and out-of-state child abuse registry checks. Apply through my.oregonregistryonline.org (myORO); allow 30-90 days. Application fees cover fingerprinting and processing.

What are Oregon’s daycare staff-to-child ratios?

Certified Centers (CC) under OAR 414-300-0130: 1:4 infants (max group 8), 1:4 toddlers (max group 12), 1:10 preschoolers (max group 20), 1:15 school-age (max group 30 typical). Certified Family (CF) homes use a different framework based on overall capacity (maximum 16) with sub-limits on children under 24 months and group separation when more than 12 children are in care. Registered Family (RF) caps capacity at 10 children with sub-limits on infants and toddlers.

What is happening with Spark in 2026?

Spark, Oregon’s Quality Rating and Improvement System, is sunsetting its five-star portfolio rating system on June 30, 2026. Programs may submit portfolios for new or higher ratings through that date (postmark required). After July 1, 2026, no new portfolio ratings are issued – existing star levels become “historical ratings” reflecting each program’s highest achieved rating. Spark transitions to a Quality Improvement Cycle with individualized goal-setting and Quality Improvement Specialist support. If a star rating matters to your enrollment strategy, get the portfolio in before the deadline.

What is the ERDC subsidy and what changed in 2026?

The Employment Related Day Care (ERDC) subsidy is Oregon’s primary state-funded child care subsidy for working families. Effective January 1, 2026, ERDC reimbursement moved from a market-based to a cost-based model – rates are now anchored to the actual cost of providing care, calculated through the DELC cost model. Most rural providers and many infant/toddler programs see meaningful rate increases. Enroll as an ERDC provider through DELC if you want to serve subsidy-eligible families; Spark-rated programs typically receive higher tiers.

How long does Oregon daycare licensing take?

Realistic timeline from first application to issued license is 90-180 days, depending on license type, facility readiness, and DELC backlog. The biggest delays typically come from Central Background Registry processing (30-90 days for some applicants), local fire and sanitation inspections, and building code compliance for new construction or change of use. Plan accordingly when leasing space – pre-opening rent during the licensing wait is the most common cash-flow trap for new center operators.

Do Oregon daycares have to charge sales tax on tuition?

No. Oregon has no statewide sales tax, and child care services are not taxed at the state or local level. Tuition is what families pay – no sales tax line item. Note: tuition revenue is subject to the Portland Business License Tax (2.6%) and Multnomah County Business Income Tax (2.0%) if you operate in those jurisdictions, both with a $100 annual minimum and filed jointly through Portland Revenue Division.