How to Start a Daycare in Alabama (2026)

Last updated: February 25, 2026

Starting a daycare in Alabama is one of the most heavily regulated business types in the state. The Alabama Department of Human Resources (DHR) licenses and regulates all childcare facilities through its Child Care Services Division. Alabama uses a tiered licensing system with different requirements for day care centers, group day care homes, and family day care homes. Staff-to-child ratios are among the key requirements – for infants, the ratio is 1:5, and for toddlers it is 1:7. All staff must pass state and federal background checks, and directors must complete specific training. Licenses are renewed every 2 years. This guide covers every requirement using official Alabama DHR sources.

Daycare Requirements in Alabama at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Secretary of State	$228 (online)	3-5 business days
DHR Day Care Center License	Alabama DHR – Child Care Services	No published fee	3-6 months (application to approval)
Background Checks (all staff)	Alabama Bureau of Investigation / FBI	~$35-$50 per person	2-4 weeks
Director Training/Orientation	DHR-approved provider	Varies	Before opening
CPR/First Aid Certification	ARC, AHA, or equivalent	$50-$100 per person	1 day
Fire Inspection	Local Fire Marshal	Varies	Before DHR license issued
Health/Sanitation Inspection	County Health Department	Varies	Before DHR license issued
Municipal Business License	City/County Clerk	Varies ($50-$300+)	1-5 business days
General Liability Insurance	Private Carrier	$2,000-$5,000/year	Before opening
Workers’ Comp Insurance	Private Carrier	Varies by payroll	Before hiring 5th employee
Federal EIN	IRS	Free	Immediate (online)

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

Step 1: Form Your Business Entity

Register an LLC with the Alabama Secretary of State ($228 online). Apply for a free federal EIN at IRS.gov. Get a municipal business license from your city or county.

Step 2: Contact DHR and Choose Your License Type

Contact the Alabama Department of Human Resources, Child Care Services Division to request a licensing packet. Alabama has three license types:

License Type	Capacity	Location
Day Care Center	13+ children	Non-residential facility
Group Day Care Home	7-12 children	Operator’s home or non-residential
Family Day Care Home	Up to 6 children	Operator’s home

You must attend a mandatory pre-licensing orientation conducted by DHR before submitting your application. Contact your county DHR office to schedule.

Step 3: Prepare Your Facility

Alabama DHR Minimum Standards for Day Care Centers include:

Space Requirements

Indoor space: Minimum 35 square feet per child of usable floor space (excludes hallways, kitchens, bathrooms, offices)
Outdoor space: Minimum 50 square feet per child of usable play area
Outdoor area: Must be fenced (at least 4 feet high) and free of hazards

Safety Requirements

Working smoke detectors and fire extinguishers on each floor
Emergency evacuation plan posted in each room
All cleaning supplies, medications, and hazardous materials locked and inaccessible to children
Electrical outlets covered in rooms used by children
Swimming pools must be fenced with self-closing, self-latching gates
All furniture, equipment, and toys must be age-appropriate and in good repair

Kitchen/Food Service

If preparing food on-site, kitchen must meet county health department standards
Meals and snacks must meet USDA Child and Adult Care Food Program (CACFP) guidelines
Separate food preparation area from childcare areas

Step 4: Complete Background Checks for All Staff

Every person who has contact with children must pass a background check. This includes directors, teachers, aides, volunteers, drivers, cooks, and any other staff.

Alabama Bureau of Investigation (ABI) – state criminal history check
FBI fingerprint check – federal criminal history
Alabama Sex Offender Registry check
Alabama Child Abuse/Neglect Registry (Central Registry) check
Cost: ~$35-$50 per person for fingerprinting and processing

Disqualifying offenses include felony convictions, sex offenses, child abuse/neglect findings, and certain drug offenses. Background checks must be completed before the individual begins work.

Step 5: Complete Required Training

Director Qualifications

Must be at least 21 years old
High school diploma or GED required
Complete DHR-approved pre-service training (orientation)
Experience in childcare or early childhood education preferred (requirements vary by center size)
For centers of 13+ children: director should have relevant education (Associate’s or Bachelor’s in early childhood education or related field) or equivalent experience

Staff Training Requirements

CPR certification (infant and child) – at least one certified staff member on-site at all times
First Aid certification – at least one certified staff member on-site at all times
Annual training: Minimum of 12 clock hours of in-service training per year for all staff
Training topics must include child development, health and safety, nutrition, positive guidance, and inclusion of children with special needs

Step 6: Meet Staff-to-Child Ratios

Alabama DHR requires the following minimum staff-to-child ratios at all times, including outdoor play, field trips, and nap time:

Age Group	Staff-to-Child Ratio	Maximum Group Size
Infants (0-18 months)	1:5	10
Toddlers (18 months – 2.5 years)	1:7	14
Preschool (2.5 – 4 years)	1:11	22
Pre-K (4 – 5 years)	1:15	30
School-age (5+ years)	1:20	40

Note: Ratios must be maintained at all times. If a single child in a group is in the younger age category, the ratio for that younger age applies to the entire group.

Step 7: Pass Inspections and Receive Your License

Before your DHR license is issued, you must pass:

Fire safety inspection by the local fire marshal
Health/sanitation inspection by the county health department
DHR facility inspection by a DHR licensing representative

Once all inspections pass and documentation is complete, DHR issues your license for a 2-year period. DHR conducts unannounced inspections at least annually during the license period.

Cost to Start a Daycare in Alabama

Item	Cost	Notes
LLC Formation	$228	$28 name reservation + $200 formation
Municipal Business License	$50-$300	Varies by city/county
Background Checks (staff of 5)	$175-$250	~$35-$50 per person
CPR/First Aid Training (staff of 5)	$250-$500	$50-$100 per person
Facility Lease (first + last month)	$2,000-$8,000	Commercial space; varies by location
Facility Renovations/Buildout	$5,000-$30,000	Fencing, safety modifications, playground
Furniture and Equipment	$3,000-$10,000	Cribs, tables, chairs, mats, toys
Playground Equipment	$2,000-$15,000	Outdoor play structures, surfacing
General Liability Insurance	$2,000-$5,000/year	Childcare-specific policy
Workers’ Comp Insurance	Varies	Required at 5+ employees
Initial Supplies	$1,000-$3,000	Cleaning supplies, diapers, food, craft materials
Marketing	$500-$2,000	Website, signage, local advertising
Federal EIN	Free	Apply online at IRS.gov

Estimated total startup cost: $20,000-$75,000 (varies significantly based on facility type and location)

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Frequently Asked Questions

How do I get a daycare license in Alabama?

Contact the Alabama DHR Child Care Services Division or your county DHR office. You must attend a mandatory pre-licensing orientation, submit an application, pass background checks for all staff, meet facility requirements, and pass fire, health, and DHR inspections. The process typically takes 3-6 months.

What are the staff-to-child ratios for Alabama daycares?

Alabama DHR requires: infants (0-18 months) 1:5, toddlers (18 months-2.5 years) 1:7, preschool (2.5-4 years) 1:11, pre-K (4-5 years) 1:15, school-age (5+ years) 1:20. Ratios must be maintained at all times including outdoor play and nap time.

What background checks are required for daycare staff in Alabama?

All staff who have contact with children must pass: Alabama Bureau of Investigation (ABI) criminal check, FBI fingerprint check, Sex Offender Registry check, and Child Abuse/Neglect Central Registry check. Cost is approximately $35-$50 per person. Checks must be completed before the individual begins work.

How much does it cost to start a daycare in Alabama?

Startup costs range from $20,000-$75,000 depending on facility type and size. Major expenses include facility lease and renovation ($7,000-$38,000), furniture and equipment ($3,000-$10,000), playground ($2,000-$15,000), insurance ($2,000-$5,000/year), and background checks/training ($425-$750 for initial staff).

How much space do I need per child in Alabama?

Alabama DHR requires a minimum of 35 square feet per child of usable indoor floor space (excluding hallways, kitchens, bathrooms, and offices) and 50 square feet per child of outdoor play area. Outdoor areas must be fenced with at least 4-foot-high fencing.

What training is required for Alabama daycare staff?

Directors must complete DHR-approved pre-service orientation. At least one staff member on site must have current CPR and First Aid certification (infant/child). All staff must complete a minimum of 12 clock hours of annual in-service training covering child development, health and safety, nutrition, and positive guidance.

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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.

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