How to Start a Daycare in Nebraska (2026)

Last updated: May 4, 2026

Nebraska licenses child care under five distinct categories through the Nebraska Department of Health and Human Services (DHHS), and the licensing threshold is triggered by a specific threshold: caring for four or more children from different families. If you care for three children from other families in your home, you are exempt; at four, you need a DHHS license. Nebraska’s licensing fees are among the most accessible in the Midwest – $25 per year for operations under 30 children and $50 per year for larger operations – but the background check, space, and ratio requirements carry real compliance weight that new providers often underestimate before opening day.

Nebraska’s Child Care Assistance Program (CCAP) is in the middle of a legislative debate that matters for your business plan. Through September 30, 2026, CCAP covers families with incomes up to 185% of the federal poverty level (roughly $53,000-$54,000 for a family of four in 2026). On October 1, 2026, that threshold is scheduled to drop back to 130% FPL unless the Legislature acts to extend it. A legislative proposal was advancing through committee as of spring 2026 to permanently maintain the 185% threshold. If you plan to accept CCAP subsidies as a primary revenue source, monitor this issue closely – the client pool eligible for subsidy could contract significantly in the fall of 2026 if the eligibility drop takes effect.

Daycare Requirements in Nebraska at a Glance

Requirement	Agency	Cost	Timeline
LLC Certificate of Organization	Nebraska Secretary of State	$100 online + $2 fee; plus newspaper publication $30-$75	3-5 business days
DHHS Child Care License (under 30 capacity)	Nebraska DHHS Children’s Services Licensing	$25/year	30-60 days; requires inspection
DHHS Child Care License (30+ capacity)	Nebraska DHHS Children’s Services Licensing	$50/year	30-60 days; requires inspection
Fingerprint Background Check (all staff)	DHHS — ecmp.nebraska.gov	Free through 2029 (DHHS pays)	Before working with children
Central Registry Checks	DHHS — dhhs.cfscentralregistry@nebraska.gov	Free	Required for all staff
Workers’ Compensation Insurance	Licensed private insurer; newcc.gov	Varies (NCCI class 9059)	Required at 1+ employee
CCAP Subsidy Provider Enrollment (optional)	Nebraska DHHS	Free	After licensing; enroll to accept CCAP
Step Up to Quality enrollment (voluntary)	NDE / DHHS — stepuptoquality.ne.gov	Free (coaching and support provided)	After licensing; enhances CCAP access

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

Step 1: Choose Your Nebraska DHHS License Type

Nebraska DHHS licenses child care under five distinct categories. Your license type determines your maximum capacity, physical space requirements, and operational flexibility:

Family Child Care Home I

Home-based care in the provider’s own residence. Limited to smaller group sizes typical of family-style care. Designed for providers caring for children in an intimate, home-like environment. One of the most common starting points for new child care providers in Nebraska.

Family Child Care Home II

A larger home-based operation than Home I, allowing higher capacity while maintaining the home setting. Additional staff and space requirements apply. Suitable for providers who have outgrown Home I capacity and are not ready to establish a separate facility.

Child Care Center

Center-based care in a dedicated facility outside a personal residence, or in a non-residential portion of a residence. Largest capacity allowances. Subject to the most comprehensive space, staffing, and operational requirements of any Nebraska child care license type.

Preschool

Focuses on educational programming for preschool-age children. Must meet DHHS licensing standards in addition to any curriculum or educational requirements. Often combined with child care center operations to offer before- and after-school care alongside preschool programming.

School-Age-Only Center

Specifically for children school-age and older. Common for before- and after-school programs and summer care. Staff ratios and space requirements are calibrated for older children.

Licensing threshold

A DHHS child care license is required when you care for four or more children from different families at the same time. Caring for relatives’ children, or caring for fewer than four unrelated children simultaneously, is exempt from state licensing.

Step 2: Form Your Business Entity

Most Nebraska daycare businesses operate as LLCs or sole proprietorships. An LLC provides personal liability protection – important in a business where injuries and accidents create legal exposure.

• File a Certificate of Organization with the Nebraska Secretary of State at nebraska.gov/apps-sos-edocs for $100 online plus $2 processing fee.
• Publish a notice of organization in a legal newspaper in your county and file an Affidavit of Publication with the SOS (required by Nebraska law; omitting it can result in administrative dissolution).
• Apply for a federal EIN at irs.gov.

Step 3: Meet Facility and Staffing Requirements

Nebraska DHHS sets minimum space and staff-to-child ratio requirements for each license type. Before applying for a license, ensure your facility meets these standards:

Staff-to-child ratios

• Infants: 1 staff per 4 children (1:4)
• Toddlers: 1 staff per 6 children (1:6)
• Age 3: 1 staff per 10 children (1:10)
• Ages 4-5: 1 staff per 12 children (1:12)
• School-age 6-12: 1 staff per 15 children (1:15)

These ratios apply during all child care hours. Mixed-age groups use the ratio for the youngest child in the group. Nebraska’s ratios for infant care (1:4) are at or below the national average – this is one of the more staffing-intensive operational costs for Nebraska infant rooms.

Training requirements

DHHS requires child care providers to complete pre-licensing training before an initial license is issued. Training covers child development, health and safety, and abuse recognition. First aid and CPR certification are also required. Contact DHHS Children’s Services Licensing at DHHS.ChildCareLicensing@nebraska.gov for the current pre-licensing training curriculum.

Step 4: Complete Background Checks for All Staff

Nebraska requires comprehensive background screening for all child care staff and, for home-based providers, for all household members age 13 and older.

Fingerprint-based criminal history check

Federal mandate requires fingerprint-based national criminal history record checks for all child care workers. DHHS pays the full cost of fingerprinting and processing through 2029 under the federal mandate funding. Submit fingerprint requests through the DHHS system at ecmp.nebraska.gov. The orientation document for fingerprinting is available from DHHS Licensure.

Central Registry checks

All staff must clear two Central Registry checks: the Nebraska Central Registry for Adult Abuse and Neglect and the Nebraska Central Registry for Child Abuse and Neglect. Contact the Central Registry staff at dhhs.cfscentralregistry@nebraska.gov or (402) 471-9272.

Disqualifying offenses

DHHS will not license or enroll providers with convictions for crimes that endanger health and safety, including crimes against a child or vulnerable adult, crimes involving intentional bodily harm, illegal use of controlled substances, or crimes of moral turpitude.

Step 5: Apply for Your DHHS Child Care License

Submit your completed application, supporting documents, and licensing fee to Nebraska DHHS Children’s Services Licensing. Fees:

• Provisional license (all types, under 30 capacity): $25
• Provisional license (30+ capacity): $50
• Yearly license (under 30 capacity): $25
• Yearly license (30+ capacity): $50
• Fees are paid by check or money order and are non-refundable.

After you submit your application, DHHS will schedule a pre-licensing inspection of your facility. Allow 30-60 days for the full licensing process. Do not open for business until your provisional or annual license is issued.

DHHS Children’s Services Licensing contacts:

• Lincoln: (402) 471-6564
• Omaha: (402) 595-3343
• Toll-free: (800) 600-1289
• Email: DHHS.ChildCareLicensing@nebraska.gov
• Website: dhhs.ne.gov/licensure

Step 6: Get Workers’ Compensation Insurance and Register for Taxes

If you hire any staff (full-time, part-time, or substitute), you must carry workers’ compensation insurance. Nebraska requires WC at one or more employees with no threshold exception for child care. Purchase from a licensed Nebraska insurer. The NCCI workers’ comp class code for child care is 9059. The Nebraska Workers’ Compensation Court at newcc.gov can provide carrier contacts.

Register for a Nebraska Sales Tax Permit (daycare services are generally not taxable in Nebraska), income tax withholding if you have employees, and unemployment insurance through NEworks. Report all new hires within 20 days at ne-newhire.com. Nebraska’s minimum wage is $15.00/hr in 2026 – budget accordingly for all hourly staff.

Step 7: Enroll in Step Up to Quality and CCAP

Step Up to Quality (voluntary QRIS)

Step Up to Quality is Nebraska’s Quality Rating and Improvement System (QRIS), managed jointly by the Nebraska Department of Education (NDE) and DHHS. The program has five quality steps. Participation is voluntary, but rated providers appear in the Step Up to Quality provider search used by Nebraska parents seeking quality child care. Step Up to Quality 2.0, launched in early 2026, introduced earlier coaching access, expanded observation choices, and more personalized quality-improvement pathways. Find resources at stepuptoquality.ne.gov.

CCAP (Child Care Assistance Program)

The Nebraska Child Care Assistance Program (CCAP) provides subsidized child care for income-eligible families. To accept CCAP payments, you must enroll as a CCAP provider through DHHS. This is separate from your DHHS child care license.

Current CCAP income threshold (through September 30, 2026): Families with incomes up to 185% of the federal poverty level are eligible. For a family of four in 2026, that is approximately $53,000-$54,000 in annual household income.

Scheduled change on October 1, 2026: The threshold is set to drop to 130% FPL unless the Legislature extends the current eligibility level. A legislative proposal was advancing in 2026 to make 185% FPL permanent. If you rely on CCAP families for a significant share of enrollment, monitor this legislative development closely. A drop to 130% FPL would reduce the pool of families eligible for subsidized care.

Co-payment structure: Families below 100% FPL pay no co-payment. Families above 100% FPL contribute 7% of household income toward child care costs, with CCAP covering the remainder up to the program’s reimbursement rate.

Nebraska Child Care Market: Where the Demand Is

Nebraska’s child care market has a documented supply-demand gap. The state’s child care desert problem is most acute in rural areas and in the Omaha metro for infant care specifically. The University of Nebraska Medical Center (UNMC) in Omaha employs thousands of healthcare workers on shift schedules that create demand for non-traditional-hours care. Offutt Air Force Base in Bellevue (Sarpy County) has on-base child care, but military families in surrounding communities depend on local licensed providers. The base’s presence creates a stable demand base that is less sensitive to economic cycles than purely private-sector-dependent markets.

Lincoln has high demand driven by state government employment, UNL faculty and staff, and a growing healthcare sector. The Lincoln metro has a higher concentration of two-income professional households than most Nebraska cities, which supports premium pricing for higher-quality Step Up to Quality-rated programs. In central Nebraska cities like Grand Island and Kearney, agricultural and meatpacking industry employment creates demand for early-morning availability from workers on production schedules that start before 6 AM – a differentiator that many standard child care operations cannot serve.

Cost to Start a Daycare in Nebraska

Item	Cost	Notes
LLC Certificate of Organization (online)	$102	$100 + $2 processing; plus newspaper publication $30-$75
DHHS Child Care License (under 30 children)	$25/year	$50/year for 30+ capacity; non-refundable
Fingerprint background checks	$0	DHHS pays through 2029 under federal mandate
First aid / CPR certification	~$50-$100/staff	Required for licensure; renew every 2 years
Pre-licensing training	Varies	DHHS-required before initial license issued
Workers’ Compensation Insurance	Varies	Required at 1+ employee; NCCI class 9059
General Liability Insurance	~$500-$1,500/year	Not state-required but strongly recommended; some CCAP contracts require it
Facility preparation (for center-based)	Highly variable	Space, safety, and equipment requirements per DHHS regulations

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• How to Start a Landscaping Business in Nebraska
• How to Become a Private Investigator in Nebraska

← Back to all Nebraska business guides

Frequently Asked Questions

When do I need a DHHS child care license in Nebraska?

You need a DHHS child care license when you care for four or more children from different families at the same time. Caring for three or fewer unrelated children simultaneously is exempt from state licensing. Caring exclusively for your own relatives’ children (regardless of number) is also generally exempt. If you are unsure whether your planned operation triggers the licensing requirement, contact DHHS Children’s Services Licensing at (800) 600-1289.

What are Nebraska’s child care staff-to-child ratios?

Nebraska DHHS requires: 1:4 for infants, 1:6 for toddlers, 1:10 for age 3, 1:12 for ages 4-5, and 1:15 for school-age children 6-12. In mixed-age groups, the ratio for the youngest child in the group applies. These ratios must be maintained during all hours of operation, not just during supervised activities. Failing a ratio inspection is one of the most common compliance issues for new Nebraska child care centers.

What background checks are required for Nebraska daycare staff?

Nebraska DHHS requires fingerprint-based national criminal history record checks for all child care workers. As of 2024, DHHS pays the full cost of fingerprinting and processing through 2029 under a federal mandate. Additionally, all staff must clear Central Registry checks for both adult and child abuse and neglect in Nebraska. Home-based providers must run background checks on all household members age 13 and older. Contact DHHS at (402) 471-9272 or dhhs.cfscentralregistry@nebraska.gov.

What is Step Up to Quality and do I have to participate?

Step Up to Quality is Nebraska’s voluntary Quality Rating and Improvement System (QRIS), a five-step program managed jointly by the Nebraska Department of Education and DHHS. Participation is not required for a DHHS child care license, but rated providers appear in the Step Up to Quality public search tool and may have access to enhanced CCAP reimbursement rates. Step Up to Quality 2.0, launched in early 2026, offers earlier coaching access and a more personalized quality-improvement pathway. Learn more at stepuptoquality.ne.gov.

What is Nebraska’s CCAP subsidy and how do I accept it?

The Nebraska Child Care Assistance Program (CCAP) provides subsidized child care for income-eligible families. Through September 30, 2026, families up to 185% of the federal poverty level qualify. This threshold is scheduled to drop to 130% FPL on October 1, 2026 unless the Legislature acts. To accept CCAP payments, you must enroll as a CCAP subsidy provider through DHHS – enrollment is separate from your child care license and is free. Families below 100% FPL pay no co-payment; families above 100% FPL contribute 7% of income toward child care costs.

What is the DHHS child care license fee in Nebraska?

Nebraska’s child care licensing fee is $25 per year for operations with fewer than 30 children in care, and $50 per year for operations with 30 or more children. The same fees apply to both provisional and annual licenses. Fees are paid by check or money order directly to DHHS and are non-refundable. This is one of the lowest licensing fee structures for child care in the Midwest.