How to Start a Daycare in Arkansas (2026)

Last updated: February 25, 2026

Starting a daycare in Arkansas involves one of the most heavily regulated licensing processes of any small business. Child care centers are licensed by the Arkansas Department of Elementary and Secondary Education (DESE), Division of Child Care and Early Childhood Education. All prospective staff must pass a fingerprint-based criminal background check through the Arkansas State Police before they begin work. A regular license is granted when a facility demonstrates substantial compliance with Arkansas’s minimum licensing requirements. Licenses must be renewed annually. There is no single licensing fee amount publicly listed – contact DESE directly for the current application and renewal fees.

Daycare Requirements in Arkansas at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Secretary of State (BCS)	$45 (online)	3-5 business days
Child Care Facility License	DESE – Division of Child Care	Contact DESE for fee schedule	60-120 days
Arkansas State Police Background Check	Arkansas State Police	~$25-$60 per person (fingerprints)	2-4 weeks
Building/Facility Inspection	Local fire and health departments	Varies	Before licensing
Sales Tax Permit	AR Dept of Finance & Administration	$50 non-refundable	3-5 business days
Workers’ Compensation Insurance	Private Carrier	Varies by payroll	Required at 3+ employees
General Liability Insurance	Private Carrier	~$2,000-$5,000/year	Before opening
Annual Franchise Tax	Secretary of State	$150/year	Due May 1st annually
License Renewal	DESE – Division of Child Care	Contact DESE for fee	Annual

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

Step 1: Form Your Business Entity

Register an LLC with the Arkansas Secretary of State for $45 online. Apply for a free federal EIN at IRS.gov.

Step 2: Understand Arkansas Daycare License Types

Arkansas distinguishes between several types of child care facilities based on the number of children served:

• Licensed Child Care Center – For facilities caring for 6 or more children from more than one family. This is the most common type for business operators. Regulated by DESE under the Division of Child Care and Early Childhood Education.
• Licensed Child Care Family Home – For care of 6 to 16 children in the provider’s own home.
• Registered Child Care Family Home – For care of fewer than 5 children in the provider’s home. Registration (not full licensing) required.

For a commercial daycare business, you will most likely need the Licensed Child Care Center classification.

Step 3: Contact DESE and Begin Your Application

Contact the Arkansas DESE Division of Child Care and Early Childhood Education to obtain current requirements, application forms, and fee information:

• Website: dese.ade.arkansas.gov – Child Care Licensing
• Online application: portal.arkansas.gov – Apply for Child Care Facility License
• Plan a pre-application meeting with a DESE licensing consultant to review requirements specific to your facility size and location

Regular License is granted when you demonstrate substantial compliance with minimum licensing requirements. A Provisional License may be issued to new facilities working toward compliance.

Step 4: Complete Background Checks for All Staff

This is one of the most important and time-sensitive steps. No staff member may begin work until a satisfactory background check result has been received.

• Fingerprint criminal background check through the Arkansas State Police
• Applies to all owners, operators, directors, teachers, aides, and volunteers with child contact
• Disqualifying offenses include crimes of violence, sexual offenses, child abuse and neglect, and drug offenses
• Budget approximately $25-$60 per person for fingerprinting services
• Allow 2-4 weeks for results

Step 5: Prepare Your Facility

Arkansas’s Minimum Licensing Requirements establish detailed standards your facility must meet:

• Indoor space: Minimum 35 square feet per child in activity areas
• Outdoor space: Access to a safe outdoor play area
• Staff-to-child ratios:
  • Infants (under 18 months): 1:6 maximum
  • Toddlers (18-36 months): 1:10 maximum
  • Preschool (3-4 years): 1:12 maximum
  • School age (5+): 1:14 maximum
• Inspections required: Local fire marshal inspection and local health department inspection before licensing
• Kitchen/food service: If you serve meals, additional health department approval may be required
• First aid and CPR: At least one staff member per group must hold current certifications

Step 6: Insurance and Tax Registration

• General Liability Insurance: $1 million per occurrence minimum; essential for a daycare. Budget $2,000-$5,000/year depending on enrollment.
• Workers’ Compensation: Required once you have 3 or more employees. Daycares typically employ multiple staff, so this will apply early.
• Sales tax: Child care services are generally exempt from Arkansas sales tax. However, register through ATAP to confirm your exemption status and for any taxable sales (products, materials).

Startup Cost Breakdown

Item	Cost
LLC formation	$45
DESE child care license (contact DESE for fee)	Contact DESE
Background checks (per staff member)	$25-$60 each
Facility inspection fees	$100-$300
Facility renovation/childproofing	$5,000-$50,000+
Equipment (cribs, toys, furnishings)	$5,000-$20,000
General liability insurance (annual)	$2,000-$5,000
First aid/CPR training	$50-$150 per person
Total estimated startup (facility costs vary widely)	$12,000-$75,000+

Frequently Asked Questions

Who licenses daycares in Arkansas?

Daycares in Arkansas are licensed by the Arkansas Department of Elementary and Secondary Education (DESE), Division of Child Care and Early Childhood Education. This responsibility was moved from the Department of Human Services (DHS) to DESE. Contact DESE’s Child Care Licensing office for application forms, fees, and current requirements.

Do daycare staff need background checks in Arkansas?

Yes. All staff members must complete a fingerprint-based criminal background check through the Arkansas State Police before beginning work. No exceptions – a satisfactory result must be received before any employee may have contact with children. Disqualifying offenses include crimes of violence, sexual offenses, child abuse, and drug offenses.

What are the staff-to-child ratio requirements for Arkansas daycares?

Arkansas minimum ratios: infants (under 18 months) 1:6, toddlers (18-36 months) 1:10, preschool (3-4 years) 1:12, school age (5+) 1:14. These are maximum ratios – having fewer children per caregiver improves quality and may be required by your facility type and square footage.

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

Expect the licensing process to take 60-120 days from initial application, depending on background check processing times, facility inspection scheduling, and DESE review. Start the process well before your intended opening date. Background checks alone can take 2-4 weeks.

Related Arkansas Business Guides

• Starting a Business in Arkansas – Complete Guide
• How to Start a Food Truck in Arkansas
• How to Start a Hair Salon in Arkansas