How to Start a Daycare in Kentucky (2026)

Last updated: February 25, 2026

Opening a daycare in Kentucky requires a state license from the Cabinet for Health and Family Services (CHFS), Division of Regulated Child Care (DRCC). Licensing is required for any facility caring for children outside their own home on a regular basis. The licensing process involves an application fee ($300), initial license fee ($50), facility inspection, criminal background checks for all staff through both Kentucky State Police and the FBI, and a child abuse registry check. Kentucky’s staff-to-child ratios are detailed and tiered by age group, with infant care requiring a 1:5 ratio. The process takes roughly 60-120 days from application to approval.

Daycare Requirements in Kentucky at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (recommended)	Kentucky Secretary of State	$40	2-5 business days
Child Care Center License – Application Fee	CHFS Division of Regulated Child Care	$300	Submit with application
Child Care Center License – Initial Fee	CHFS DRCC	$50	Paid upon license issuance
Annual Renewal Fee	CHFS DRCC	$25/year	Annual
CAN Registry Check (per person)	DCBS – CHFS	$10	Before hire/start
Kentucky State Police Background Check	KSP via KARES	$16-$20 typical	Before hire/start
FBI Fingerprint Background Check (per person)	IdentoGo	~$20 fingerprint + processing fees	Before hire/start
Workers’ Compensation	Private insurers	Varies by payroll	Required at first hire
General Liability Insurance	Private insurers	$2,000-$5,000+/year	Before opening

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

Step 1: Determine Your License Type

Kentucky CHFS licenses daycare facilities in two main categories for commercial operations:

License Type	Setting	Capacity
Type I Child Care Center	Non-dwelling building (or dwelling used primarily for child care)	13 or more children
Type II Child Care Center	Residential dwelling (home-based)	Up to 12 children
Certified Family Child Care Home	Residential home	Typically 7-12 children with certification

A commercial daycare center in a standalone building would be a Type I license. A home-based daycare caring for more than 6-7 children would typically be a Type II license. Contact CHFS DRCC at (502) 564-7962 to confirm which license type applies to your situation.

Step 2: Form Your Business Entity

Register an LLC with the Kentucky Secretary of State FastTrack portal for $40. Obtain a federal EIN from IRS.gov. You will need your business entity information for the license application. Also get your local occupational license registration with your city or county fiscal court.

Step 3: Complete Required Background Checks for All Personnel

All owners, directors, staff members, substitutes, and volunteers must complete all three background checks before starting work. This is one of the most time-consuming parts of the licensing process.

Kentucky Child Abuse and Neglect (CAN) Registry Check: $10 per person; conducted through the CHFS Division of Child and Family Services (DCBS). Any substantiated finding of abuse or neglect is disqualifying.
Kentucky State Police Criminal Background Check: Conducted through the KARES system (Kentucky Applicant Registry and Employment Screening); ~$16-$20 per person
FBI Fingerprint-Based Federal Background Check: Through IdentoGo (live scan fingerprinting locations across Kentucky); approximately $20 for fingerprinting plus federal processing fees
Interstate Background Check: Required for staff who lived outside Kentucky within the last 5 years; DRCC makes eligibility determination within 45 days

Background checks must be repeated every 5 years for all continuing staff.

Step 4: Prepare Your Facility to CHFS Standards

Your facility must comply with all requirements under 922 KAR 2:090 (licensure), 922 KAR 2:110 (provider requirements), and 922 KAR 2:120 (health and safety standards) before DRCC will issue a license. Key requirements include:

Minimum square footage: 35 square feet of indoor space per child; 75 square feet of outdoor play space per child
Infant/toddler sleeping: Approved cribs or sleeping mats, no inclined sleep positioners
Health standards: Handwashing sinks in child care rooms, separate food preparation area, age-appropriate bathroom facilities
Safety: Secured outdoor play areas, age-appropriate equipment, no recalled items, smoke and CO detectors, fire extinguishers
Zoning: Verify your location is zoned for child care use; may require a conditional use permit from your local planning department

Step 5: Apply for Your CHFS Child Care License

Submit the initial license application to the CHFS Division of Regulated Child Care:

Application fee: $300 (non-refundable)
Initial license fee: $50 (paid upon license issuance)
DRCC staff will schedule a site inspection after reviewing your application
Allow 60-120 days from application to final license approval

After initial licensing, annual renewal costs just $25 per year.

Step 6: Maintain Proper Staff-to-Child Ratios

Kentucky’s staff-to-child ratios for Type I licensed centers (per 922 KAR 2:120) are tiered by the youngest child’s age in each group:

Age Group	Staff:Child Ratio	Max Group Size
Infant (under 12 months)	1:5	10
Young Toddler (12-24 months)	1:6	12
Toddler (24-36 months)	1:10	20
Preschool (3-4 years)	1:12	24
Preschool (4-5 years)	1:14	28
School-age (5-7 years)	1:15	30
School-age (7+ years, full day)	1:20	30
School-age (7+, before/after school only)	1:25	30

Cost to Start a Daycare in Kentucky

Item	Cost	Notes
LLC Formation	$40	One-time; Secretary of State
License Application Fee	$300	Non-refundable; CHFS DRCC
Initial License Fee	$50	Paid upon license issuance
Annual License Renewal	$25/year	After first year
Background Checks (per person)	$50-$75	CAN + KSP + FBI fingerprint combined
LLET (annual)	$175/year	Kentucky LLC entity tax
General Liability Insurance	$2,000-$5,000+/year	Child care specific policy recommended
Facility Renovations/Setup	$10,000-$50,000+	Highly variable; depends on existing condition
Equipment and Furnishings	$5,000-$20,000	Age-appropriate furniture, cribs, toys, outdoor equipment

Estimated total startup licensing cost: $600-$800 (not including facility, insurance, or equipment)

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Frequently Asked Questions

Who licenses daycares in Kentucky?

The Kentucky Cabinet for Health and Family Services (CHFS), Division of Regulated Child Care (DRCC) licenses child care centers in Kentucky. You can reach them at (502) 564-7962 or visit chfs.ky.gov. Licensing is required for any facility that regularly cares for children outside their own home.

How much does a Kentucky daycare license cost?

The initial child care center license costs $350 total – a $300 non-refundable application fee plus a $50 initial license fee paid upon approval. After that, annual renewal is just $25 per year. Background check costs add approximately $50-$75 per person for the required CAN registry check, Kentucky State Police check, and FBI fingerprint check.

What background checks are required for Kentucky daycare staff?

All owners, directors, staff, substitutes, and volunteers must complete three checks before starting work: (1) the Kentucky Child Abuse and Neglect (CAN) Registry Check ($10), (2) a Kentucky State Police criminal background check through the KARES system, and (3) an FBI fingerprint-based federal background check through IdentoGo. Staff who lived out of state within the last 5 years need interstate checks too. All checks must be repeated every 5 years.

What is the staff-to-child ratio for Kentucky daycare centers?

Kentucky’s ratios for licensed centers are age-tiered. The most restrictive are for infants (under 12 months): 1 staff per 5 children with a maximum group size of 10. Young toddlers (12-24 months) require 1:6; toddlers (24-36 months) 1:10; preschoolers (3-4 years) 1:12; preschoolers (4-5 years) 1:14; and school-age children 1:15 to 1:25 depending on hours of care.

How long does it take to get a Kentucky daycare license?

Plan on 60-120 days from application submission to final license approval. This accounts for DRCC application review, facility inspection scheduling, and background check processing. Interstate background checks can add additional time. Start the process well in advance of your intended opening date.

Does a home-based daycare in Kentucky need a license?

Yes, if you care for children outside their own home on a regular basis in Kentucky, you need a license. A home caring for 13 or more children needs a Type I license; a home caring for up to 12 children needs a Type II license; smaller operations may qualify as a Certified Family Child Care Home. Contact CHFS DRCC at (502) 564-7962 to determine which category applies to your planned operation.

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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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