How to Start a Daycare in Alabama (2026)

Last updated: October 3, 2026

Child care licensing in Alabama runs through the Department of Human Resources (DHR). The rules that govern a center are Alabama Administrative Code chapter 660-5-26, and the rules for home-based care are chapter 660-5-27. Which chapter applies to you is decided by one number: how many children you take.

Two rules shape the money before anything else. The infant ratio is one staff member for every five children, and Alabama requires two staff aged 18 or older holding current pediatric CPR and first aid to be present during all hours of operation, no matter how small the group. Space is the other one: 32 square feet indoors per child, and 60 square feet of fenced outdoor play area per child for any center licensed after January 22, 2001.

Daycare Requirements in Alabama at a Glance

Requirement	Rule	Where it comes from
Licensing agency	Alabama Department of Human Resources, state and county offices	Ala. Admin. Code r. 660-5-26-.02
Family day care home	Not more than six (6) children	r. 660-5-27-.02
Group day care home	At least seven (7) but no more than twelve (12) children; separate license required	r. 660-5-27-.09
Day care center	More than twelve (12) children for daytime care	r. 660-5-26-.01
License term	Two years; renewal application at least thirty (30) calendar days before expiration	r. 660-5-26-.02
Before opening	Care may not be provided or advertised prior to issuance of a license, six-month permit, or approval	r. 660-5-26-.02
Fire inspection	Written report with no violations cited; updated at a minimum of every five (5) years; volunteer fire department approvals not accepted	r. 660-5-26-.03
Health and zoning	Written health department inspection report, food permit if food is prepared, and a written statement of zoning compliance	r. 660-5-26-.03
Indoor space	At least 32 square feet of indoor activity space for each child	r. 660-5-26-.03
Outdoor space	At least 60 square feet per child for centers licensed after January 22, 2001; fence or wall at least four (4) feet high	r. 660-5-26-.03
Toilets	At least one flush toilet and one handwashing sink for every 15 children; at least one tub per center	r. 660-5-26-.03
Infant ratio	1:5 from birth up to 18 months	r. 660-5-26-.04
CPR coverage	At least two (2) staff aged 18 or older with current pediatric CPR and first aid present during all hours of operation	r. 660-5-26-.04
Director	At least 19 years of age, 20 clock hours in administration and management, 4 clock hours in quality child care, plus one of four education and experience paths	r. 660-5-26-.06
Annual training	Directors 24 clock hours; child care workers 12; service staff 4. CPR and first aid do not count toward these hours	r. 660-5-26-.06
Background checks	Three written references, State Central Registry clearance, FBI fingerprint check, national and state sex offender registries, interstate checks if the person lived elsewhere in the past five years	r. 660-5-26-.07
Operating without a license	Misdemeanor, fined not less than $100 nor more than $1000 or imprisoned up to one year, or both	r. 660-5-26-.10

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

Step 1: Choose Your License Type

Alabama splits child care into homes and centers, in two different chapters of the Administrative Code:

Type	Capacity	Notes
Family day care home	Not more than six (6) children	A child care facility which is a family home and which receives not more than six (6) children for care during the day. Governed by chapter 660-5-27.
Group day care home	At least seven (7) but no more than twelve (12) children	A separate license shall be applied for and obtained before offering group day care at this size. Requires the licensee, an assistant caregiver, and at least two (2) substitutes.
Day care center	More than twelve (12) children	Any child-care facility receiving more than twelve (12) children for daytime care during all or part of a day. Governed by chapter 660-5-26, which is the basis for most of this guide.
Nighttime center	More than 12 children after 7:00 p.m.	Day care begins no earlier than 5 a.m.; nighttime care begins at 7 p.m. Extra rules apply in r. 660-5-26-.09.

Some programs fall outside licensing entirely. The definition excludes programs run by public school systems or institutions of higher learning, programs operating no more than four hours a day for children younger than lawful school age, and drop-in facilities at a shopping center where the parent stays on the premises, though those must still meet local and state fire and health requirements.

A group day care home has two staffing rules worth knowing before you plan capacity. Whenever seven (7) or more children are present, at least two (2) adult caregivers shall be present and supervising the children. And no group day care home shall be licensed for more than six (6) children younger than twelve (12) months of age, with at least one caregiver present and supervising each three (3) children younger than twelve (12) months.

Step 2: Apply Before You Advertise

This trips people up, so it is worth stating plainly. Child care (day care or nighttime care) shall not be provided or advertised prior to issuance of a license, six-month permit, or approval. Both free and paid advertisement is prohibited, and the rule reaches printed material, flyers, signs, social and other internet advertising, letters, and even printing on cups and pens.

Two things you may do while the application is pending. You may advertise for staff, and you may put up construction, renovation or remodeling signs, provided a license application has been filed and the material carries the clearly visible phrase “license application pending.” A market survey to determine the need for child care in a locality is also allowed, so long as it does not solicit children.

An application is not transferable from one person to another or from one location to another. After it is filed, a DHR representative will examine the premises proposed for the center and will investigate the person or people responsible for it.

Step 3: Clear Fire, Health and Zoning

Three approvals come before the license, and each is a separate scheduling problem:

• Fire. Prior to being issued an initial license, six-month permit, or approval, the applicant shall submit a written fire department inspection report, with no violations cited. Note two details: inspections must be updated at a minimum of every five (5) years, and Volunteer Fire Department approvals and/or inspections will not be accepted.
• Health. A written health department inspection report. If food is prepared at the center, a copy of a current health department food permit shall also be submitted. If food is served but not prepared on site, you need written approval of the food service plan from the health department instead.
• Zoning. A written statement of compliance with applicable zoning requirements. If no zoning laws or ordinances apply, you submit a written statement verifying you checked with the local governing authority and there are none.

Copies of the fire and health reports must be submitted to DHR and also posted in the center.

Step 4: Meet the Space Rules

Indoor

There shall be at least 32 square feet of indoor activity space for each child. The exclusions matter as much as the number: Bathrooms, kitchens, isolation room, office, halls used as passageways, and storage areas shall not be considered when computing activity space. Activity areas must be used exclusively by the children in care during operating hours.

Bathrooms shall be located on the same floor level and under the same roof as activity areas, with at least one flush toilet for every 15 children, at least one handwashing sink for every 15 children, and at least one tub per center. Toilets and sinks used by children must be child size in height or adjusted with sturdy platforms or seat adapters. Every room where children are diapered needs its own handwashing sink with warm running water, soap, and disposable paper towels.

A few more that affect the building search: there shall be an operational telephone in the center for center business only; temperature shall be maintained between 68 and 82 degrees Fahrenheit with a thermometer in each area used by children; and space shall be provided for a child who becomes ill or is injured.

Outdoor

For centers licensed, permitted, or approved after January 22, 2001, there shall be at least 60 square feet of outdoor play area for each child. There is a real concession for larger programs: in centers with a capacity of 60 or more children, the 60 square feet per child applies to at least one-half of the center’s licensed capacity rather than all of it.

Outdoor play areas shall be enclosed by a fence or wall at least four (4) feet in height, free from sharp protruding edges, with gates secured. Separate play areas shall be provided for children younger than age 2½ years, which may be achieved by scheduling alternate play periods. Shade structure and sun areas shall be provided, an off-street loading area is required for post-2001 centers, and concrete or asphalt shall not be used under outdoor playground equipment except for wheel toys.

Step 5: Meet Staff-to-Child Ratios

These are the center ratios. Note the separate 24 to 36 month band, which overlaps the 18 month to 2½ year band and is easy to miss.

Age	Staff to child ratio
0 up to 18 months	1 to 5
18 months up to 2½ years	1 to 7
24 months up to 36 months	1 to 8
2½ years up to 4 years	1 to 11
4 years up to school age	1 to 18
School age up to 8 years	1 to 21
8 years and older	1 to 22

Children younger than age 2½ years shall be grouped separately from children older than 2½ years of age. When children of different ages are grouped together, the ratio follows the age of the youngest child in the group if more than 20% of the children are in the youngest age category; if the youngest category is 20% or less of the group, the ratio follows the next highest age category.

Ratios relax during sleep, but not for infants: 0 up to 18 months stays 1 to 5, 18 months up to 2½ years becomes 1 to 14, and 2½ years and older becomes 1 to 36. At least one staff person meeting child care worker qualifications shall be present in each room where children are napping, able to see all the children in the room.

Two staffing floors apply regardless of headcount. At least two (2) staff who are at least 18 years of age, meeting child care worker qualifications and holding a current pediatric CPR certificate and a current first aid certificate, shall be present during all hours of operation. And there shall be a second staff person, age 18 or older, available in the center building or on the premises whenever seven (7) or more children are present. No staff person shall be on duty with the children for more than eight (8) continuous hours on a regular basis.

Step 6: Meet Director and Staff Qualifications

Director

The center director shall be at least 19 years of age and shall have at least twenty (20) clock hours of training in administration and management and at least four (4) clock hours of training in quality child care. On top of that, the director shall meet at least one of the following:

• One hundred twenty (120) clock hours of training in child care, a high school diploma or GED, and at least twelve (12) months of working experience as a child care worker or director in a licensed center or a Department approved setting. The 120 hours must include at least twenty (20) hours in each of six areas: child development; health, safety and universal precautions; quality child care and licensing; the child care professional and the family; language development; and positive discipline and guidance; or
• A Child Development Associate credential (CDA) or a Certified Child Care Professional certificate (CCP), a high school diploma or GED, and at least twelve (12) months of working experience; or
• An associate degree in child development or early childhood education and at least nine (9) months of working experience; or
• A bachelor’s degree in child development or early childhood education and at least six (6) months of working experience.

Everyone Else

• Child care workers and teachers shall be at least 18 years of age with a high school diploma or GED. Within thirty (30) days after employment they shall have at least twelve (12) hours of training in child care and development, covering at least one hour in each of the same six areas listed above.
• Aides and assistant teachers shall be at least 16 years of age with at least an 8th grade education, work under the direct supervision of a qualified child care worker, and shall not be counted in the required staff-child ratio.
• Drivers of a center vehicle shall be at least 19 years of age with a valid driver’s license.
• Everyone, including service staff and substitutes, shall have at least one (1) hour of preservice training from an outside source in each of eleven required areas, covering infectious disease control, SIDS and safe sleep, medication administration, food and allergic reactions, premises safety, shaken baby syndrome, emergency preparedness, hazardous materials, recognizing and reporting abuse and neglect, first aid and CPR, and transportation precautions where applicable.

Staff also enroll in the Alabama Pathways Professional Development Registry, and the center director completes orientation training on the assessment tools used by the Department’s Quality Rating and Improvement System.

Annual in-service training is tiered, and this is a common misreading: directors shall obtain at least twenty-four (24) clock hours of training each year, child care workers and teachers at least twelve (12), and service staff such as cooks, bus drivers and janitors at least four (4). Training in CPR and first aid shall not be counted toward annual in-service training hours.

Health records are part of hiring. Each staff person provides a statement from a licensed medical doctor, physician’s assistant or certified nurse practitioner, dated within six (6) months prior to employment, documenting a tuberculin skin test or chest x-ray and attesting to physical suitability. That statement is renewed at least every four years.

Step 7: Complete Character and Suitability Checks

Alabama runs this as a “character and suitability” review rather than a simple background check, and it covers applicants, board members, directors, staff, employees and volunteers. For each person the center collects:

• At least three (3) written reference letters from individuals not related by blood, marriage, or adoption.
• A completed request for clearance of the State Central Registry on Child Abuse/Neglect, on DHR-DFC Form 1598, updated every five (5) years.
• A criminal history background check whose components are a National FBI criminal history check with fingerprints, a National Crime Information Center national sex offender registry check, an in-state criminal history check with fingerprints, and an in-state sex offender registry check.
• Interstate criminal history and sex offender registry checks if the individual has lived in another state within the past five years.
• A Suitability Determination letter from the Department, updated every five (5) years.

Two practical points. The Department of Human Resources shall not be responsible for the payment of any fees required for obtaining criminal history information, so that cost is yours. And pending completion of all required background check components, applicants, directors and staff cannot be counted in the child/staff ratio, which is a scheduling problem as much as a compliance one.

After you are licensed, the licensee shall inform the Department of any criminal convictions and current criminal charges involving the licensee, staff, employees or volunteers within 24 hours, followed by a written report within five (5) days.

Step 8: Put the Required Written Materials in Place

• Operating policies. Establish written operating policies, give a copy to each parent at enrollment, and submit a copy to the Department. Operating policies shall not contradict the Standards.
• Emergency preparedness plan. The center shall develop a written disaster plan, post it conspicuously, submit it to the Department, and provide copies to all parents. It has to cover weather, lockdown and evacuation for threats of violence, hazardous materials, disease outbreaks, and loss of power, water or heat, and it is updated yearly. Emergency procedures shall be practiced at least once each quarter.
• Children’s records. Individual records on each child on file the first day of attendance, including a valid State of Alabama Certificate of Immunization unless a medical or religious exemption is on file. Records are kept for the current year plus two additional years.

A number of documents must be posted in a conspicuous place: the most recent license, the public notice form, the most recent licensing evaluation and deficiency report, any corrective or adverse action notices, the most recent fire and health inspection reports and food permit, the menu, the emergency plan, the name of the director or person in charge, and emergency telephone numbers by the center phone.

Step 9: The License, the Permit and What Comes After

Licenses issued to day care centers and nighttime centers are valid for two years. Application for renewal shall be made at least thirty (30) calendar days prior to the expiration date; if the renewal is not timely and sufficient, the license expires on its stated date and continuing to operate is reported to the District Attorney and the Attorney General.

If you are close but not finished, the Department may, at its discretion, issue one six-month permit. Before a six-month permit is issued all standards shall be met with the exception of one half of the required equipment, indoor and outdoor, for each age group to be served. The required equipment is itemized by age group in r. 660-5-26-.12, down to counts like two books per child, and it is a real line in the startup budget.

Alabama also runs a voluntary Quality Rating Improvement System. All licensed providers not on an adverse action are initially enrolled as a Star 1 rated facility, and a provider may opt out by giving written notice within sixty days. Participation and star rating have no effect on the license itself.

Once open, annual visits made for the purpose of determining compliance shall be made without prior notice. If DHR cites deficiencies, the ladder runs from a deficiency report to a corrective action plan to probationary status, which has a maximum period of six (6) months, and then to suspension or revocation. An emergency suspension may remain in effect for no longer than 120 days and is not renewable.

Step 10: If You Will Transport Children

DHR does not inspect away-from-center activities, and the licensee shall assume full authority and responsibility for them. If you transport, the rules add: a written statement signed by each child’s parent on file beforehand; transportation checklists on the required form used to account for loading and unloading at every location, signed by both the designated staff person and the driver; and a safety check on the required form done annually and signed and dated by a mechanic on all vehicles regularly used.

Staffing in the vehicle is stricter than you might expect. The driver shall not be counted in the required staff-child ratio when children younger than lawful school age are transported. For school-age children, fewer than fifteen may travel with only the driver; fifteen (15) or more requires at least one additional staff person, and thirty (30) or more requires at least two. A commercial driver’s license is required for vehicles designed to carry 16 or more persons including the driver.

Step 11: Form Your Business Entity and Register as an Employer

Business formation

Alabama uses a two-step filing. You must obtain a Certificate of Name Reservation before filing your formation documents, then file the Certificate of Formation with the Secretary of State. On the Secretary of State fee schedule, a Name Reservation is $25.00 and a domestic limited liability company Certificate of Formation is $200.00. Filing through an online portal can add a processing charge on top of those statutory fees, so check the total at checkout.

Forming an entity is not a licensing requirement. DHR licenses the facility and the people, not the business structure.

Workers’ compensation

Alabama’s Department of Labor puts the threshold plainly: any business that has five (5) or more employees, other than contractors, is required by law to have workers’ compensation coverage. Note who counts: the term employee includes all full or part-time employees, officers of a corporation or members of an LLC.

Unemployment tax

Employers newly liable under the Alabama UC law pay tax at the rate of 2.70% on the first $8,000 of wages for each employee. Later rates are set by experience rating.

What the State Sets, and What It Does Not

Item	Amount	Source
LLC Certificate of Formation	$200.00	Alabama Secretary of State fee schedule
Name Reservation	$25.00	Alabama Secretary of State fee schedule
Criminal history checks	Paid by the applicant or center; DHR is not responsible for these fees	r. 660-5-26-.07
Unemployment tax, new employers	2.70% on the first $8,000 per employee	Alabama Department of Labor
Operating without a license	Fine of not less than $100 nor more than $1000, or up to one year in county jail, or both	r. 660-5-26-.10
Refusing a lawful inspection	Class C misdemeanor, fine of not more than $500.00	r. 660-5-26-.10

Two things the licensing chapter does not set, which we checked by reading all thirteen rules of chapter 660-5-26: it states no license or application fee, and it contains no liability insurance requirement. Confirm the current application fee, if any, with DHR before you budget for one. Renovation, playground equipment, furnishings and insurance premiums depend entirely on the building and the carrier, so get quotes for your site rather than working from generic ranges.

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← Back to all Alabama business guides

Frequently Asked Questions

Who licenses daycares in Alabama?

The Alabama Department of Human Resources, through its state and county offices. Centers are governed by Alabama Administrative Code chapter 660-5-26 and home-based care by chapter 660-5-27. The Commissioner or a designee approves or denies licenses, six-month permits and approvals, and conducts inspections and investigations.

How many children can I care for before I need a license?

A family day care home receives not more than six children. A group day care home covers seven to twelve and needs its own separate license. A day care center is any facility receiving more than twelve children for daytime care. A license, permit or approval must be in hand before you provide or advertise care at any of these sizes.

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

For centers: 1:5 from birth up to 18 months, 1:7 from 18 months up to 2½ years, 1:8 from 24 up to 36 months, 1:11 from 2½ up to 4 years, 1:18 from 4 years up to school age, 1:21 for school age up to 8 years, and 1:22 for 8 and older. In a mixed group the ratio follows the youngest child if more than 20% of the children fall in that youngest category.

How much indoor and outdoor space does an Alabama daycare need?

At least 32 square feet of indoor activity space per child, not counting bathrooms, kitchens, the isolation room, the office, passageway halls or storage. Outdoors, centers licensed after January 22, 2001 need at least 60 square feet per child, behind a fence or wall at least four feet high. At a licensed capacity of 60 or more, the outdoor requirement applies to at least half of capacity rather than all of it.

Does Alabama require daycare directors to have a degree?

No. A degree is one of four routes. A center director must be at least 19 years old with 20 clock hours of administration and management training plus 4 hours in quality child care, and then either 120 clock hours of child care training with a diploma or GED and 12 months of experience, or a CDA or CCP with a diploma or GED and 12 months, or an associate degree with 9 months, or a bachelor’s degree with 6 months.

What background checks are required for Alabama daycare staff?

Three written references from unrelated individuals, a State Central Registry on Child Abuse/Neglect clearance on Form DHR-DFC 1598, and a criminal history check made up of an FBI fingerprint check, a national sex offender registry check through NCIC, an in-state fingerprint criminal check and an in-state sex offender registry check. Anyone who lived in another state in the past five years also needs interstate checks. Until every component is complete, that person cannot be counted in the staff-child ratio.

How long is an Alabama daycare license good for?

Two years. Renewal must be applied for at least thirty calendar days before the expiration date, and it is the licensee’s sole responsibility to obtain and submit the form on time. If a renewal is late or incomplete, the license expires on its stated date, and operating past it is referred to the District Attorney and the Attorney General.

Sources

Source	What it covers
Ala. Admin. Code ch. 660-5-26, Day Care Licensure: Child Care Licensing and Performance Standards for Day Care Centers and Nighttime Centers	The full center chapter, all thirteen rules: definitions and the more-than-twelve-children threshold (.01); licensing procedures, advertising ban, six-month permit, two-year license, renewal and QRIS (.02); fire, health and zoning approvals, 32 sq ft indoor, toilets, telephone, 60 sq ft outdoor and fencing (.03); ratios, napping ratios, two-CPR-staff rule, emergency plan (.04); transportation (.05); director and staff qualifications and annual training hours (.06); character and suitability checks (.07); administration, reporting and posting (.08); nighttime centers (.09); corrective and adverse actions and penalties (.10); hearings and appeals (.11); the required equipment list (.12)
Ala. Admin. Code ch. 660-5-27, Standards for Family Day Care Homes, Family Nighttime Homes, Group Day Care Homes and Group Nighttime Homes	Family day care home defined as not more than six (6) children; group day care homes at least seven (7) but no more than twelve (12), separate license, two adult caregivers whenever seven or more children are present, and the limit of six children under twelve months
Alabama Secretary of State, fee schedule	Domestic limited liability company Certificate of Formation $200.00; Name Reservations $25.00
Alabama Secretary of State, LLCs	Certificate of Name Reservation required before filing formation documents
Alabama Department of Labor, Workers’ Compensation FAQ	Coverage mandatory at five (5) or more employees; employee includes full and part-time employees, corporate officers and LLC members
Alabama Department of Labor, Unemployment Compensation employer information	New account rate of 2.70% on the first $8,000 of wages per employee; $8,000 taxable wage base
Alabama Department of Human Resources, Child Care Licensing	Where applications are made and current forms and contacts are published

Comparing states? See our daycare guides for all 50 states.