How to Start a Daycare in California (2026)

Last updated: September 16, 2026

California licenses daycares through the California Department of Social Services, Community Care Licensing Division (CCLD) under Title 22 of the California Code of Regulations. Two license types dominate: Child Care Centers (CCC) for commercial facility-based care, and Family Child Care Homes (FCCH) with two sub-types (Small 8 and Large 14, based on capacity) for home-based care. The license type determines ratios, facility requirements, and inspection frequency — choose carefully before you lease a space or apply.

The biggest California-specific change for 2026 is the Universal Prekindergarten (UPK) full implementation reached in Fall 2025. Free public Transitional Kindergarten is now available to every 4-year-old in the state, with 213,313 students enrolled on Census Day in 2025-26 — up 35,743 from the prior year and roughly 2.8 times the 2021-22 level. (A widely repeated 229,000 figure was the January 2025 budget projection, not the enrollment count.) This is not a regulatory change to your daycare license, but it is a market shift that every new California daycare must plan around: the private preschool market for 4-year-olds is compressing, while demand for infant and toddler care (under 4) remains strong or growing because public TK does not cover those ages. If your business model depended on a pre-K/4-year-old revenue tier, that tier is shrinking.

Other California-specific layers: strict Title 22 ratios (infant 1:4 with a group cap of 12, toddler 1:6, preschool 1:12 — and no group-size cap on preschool); LiveScan fingerprint background checks for every adult in contact with children, checked against California DOJ, FBI, and the California Child Abuse Central Index; Director and teacher qualifications specified in 22 CCR 101215.1 and 101216.1; and mandatory pre-application CCLD orientation. Full licensing timeline is typically 180 days from orientation to license issuance.

California Daycare Requirements at a Glance

Requirement	Agency	Cost	Timeline
CCLD Orientation (mandatory pre-application)	CDSS Community Care Licensing Division	$25 family child care home · $50 center	Before application
Child Care Center License (capacity-based fee)	CDSS CCLD	Original application $484 (capacity 1-30) rising to $2,420 (121+); annual fee is half the application fee	90-180 days from application to license
Family Child Care Home License (Small 8 or Large 14)	CDSS CCLD	$73-$140 initial application fee + annual fees	60-120 days
LiveScan Background Check (each adult)	DOJ / CDSS	~$75 per person	2-6 weeks for clearance
CPR and Pediatric First Aid Certification	Red Cross / American Heart Assn. / approved	$60-$120 per person; renew every 2 years	Before opening
15-Hour Health and Safety Training — all center staff who provide child care, every family child care home licensee, their staff, and substitute adults	CDSS-approved trainers	$100-$200 per person	Before license issuance. Since January 1, 2026 the pediatric first aid/CPR component must also cover anaphylaxis and epinephrine auto-injector use
TB Clearance for All Staff	Licensed healthcare provider	$25-$75 per person	Before opening
Fire Clearance (centers and large family child care homes only)	Local fire marshal	$100-$500+. A small family child care home is exempt — it needs only a fire extinguisher, smoke detector, and carbon monoxide detector	Pre-licensing
LLC Articles of Organization	bizfile Online	$70	2-3 business days
Annual Franchise Tax	Franchise Tax Board	$800/year from year one (post-AB 85)	15th day of 4th month after formation
Workers’ Compensation Insurance	Private carrier / State Fund	Advisory pure premium rate $1.936 per $100 of payroll (WCIRB class 9059, effective 9/1/2026) — about $1,936 per $100,000. A real quote is higher: this rate excludes insurer expense and your experience modification	Day of first hire
General + Professional Liability Insurance	Commercial carrier	$1,500-$4,500/year combined	Before opening
City Business License (child care centers only)	City Finance	$50-$500+ annually for a center. $0 for a family child care home — state law bars any city from charging one	Before operating

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

Step 1: Choose Your License Type — Center vs. Family Home

License Type	Capacity	Where	Typical Startup
Child Care Center (CCC)	Varies; set by square footage and program	Commercial-zoned facility	$75,000 – $250,000+
Small Family Child Care Home	Four infants; or six children with no more than three infants; or seven to eight under Health & Safety Code 1597.44. Capacity never exceeds eight, and the licensee’s own children under age 10 living in the home count	Your own residence	$8,000 – $25,000
Large Family Child Care Home	Twelve children with no more than four infants when an assistant provider is present; 13 or 14 only under Health & Safety Code 1597.465. With no assistant present the small-home limits apply. Children under age 10 of both the licensee and the assistant count	Your own residence	$12,000 – $40,000

Family Child Care Homes have meaningful California protections — state law overrides most local zoning to allow FCCHs in residential zones (Health & Safety Code 1597.40 et seq.), and homeowner’s associations cannot prohibit them. This protects the home-based model in jurisdictions that might otherwise zone it out.

Step 2: Attend CDSS Community Care Licensing Orientation

Before you submit anything else, you must attend the mandatory CCLD orientation offered by your regional office. CDSS offers three formats — online, live virtual, and in-person — so you do not have to travel to a regional office. The child care center online orientation is two separate sessions, and both must be completed before you apply. Topics covered:

• Overview of Title 22 regulations
• License type selection (CCC vs. FCCH)
• Staff-child ratios and group size
• Facility and safety requirements
• Background check process
• Application submission and review timeline
• Required training and certifications

Orientation is mandatory and not free: the fee is $25 for a family child care home session and $50 for a child care center session, set by statute. Fees are non-refundable and are not transferable between orientations. CDSS will not accept your license application without proof of orientation attendance.

Step 3: Form Your LLC (or Sole Proprietorship for Home-Based)

Center operators almost always form an LLC for liability separation. Family Child Care Home operators sometimes stay sole proprietorships to avoid the $800 FTB franchise tax, but the liability exposure (children in your home, chemicals, transportation, pool/hot tub issues) makes LLC formation worth the $800 for most operators.

• Articles of Organization (LLC-1): $70 at bizfile Online
• Statement of Information (LLC-12): $20 within 90 days, biennial thereafter
• Federal EIN: free at IRS.gov
• $800/year FTB franchise tax from year one — AB 85 first-year exemption expired Jan 1, 2024

Step 4: LiveScan Fingerprint Background Checks

Every adult with regular contact with children must complete LiveScan fingerprinting for CDSS background clearance:

• Director and all staff
• Volunteers with direct child contact
• For Family Child Care Homes: all adult household members (even if not working in the daycare)
• Assistants, cooks, drivers, maintenance workers with routine facility access

LiveScan checks:

• California DOJ Criminal History System
• FBI Criminal History System
• California Child Abuse Central Index (CACI)

Cost runs approximately $75 per person (rolling fee + DOJ/FBI fees). Disqualifying convictions include any registered sex offense, serious/violent felonies, crimes against children, and certain drug offenses. CDSS may issue exemptions case-by-case for other offenses — the process adds 2-6 months if needed. Plan hire timing around background clearance, not around payroll start dates.

TrustLine note: TrustLine is California’s registry for license-exempt in-home caregivers — nannies, babysitters, ancillary child care at gyms. Licensed daycare staff use the CDSS CCLD background check system, which is a separate (stricter) process than TrustLine.

Step 5: Submit Your Application Packet and Fees

Submit the full packet to your regional CCLD office:

• Child care center: form LIC 200A, Application for a Child Care Center License. (Its instruction packet is LIC 281A. LIC 281 is the generic facility packet and is not the center application.)
• Family child care home: form LIC 279, Application for a Family Child Care Home License
• Facility floor plan showing each room, exits, and required square footage
• Outdoor play area plan (minimum 75 sq ft per child outdoors)
• Indoor usable space plan (minimum 35 sq ft per child indoors)
• Evacuation plan and disaster preparedness plan
• Menu and food service plan (if providing meals)
• Fire clearance from your local fire marshal — required for child care centers and large family child care homes. A small family child care home is exempt from the state fire-inspection articles and needs only a fire extinguisher, smoke detector, and carbon monoxide detector
• Health and TB clearance for all adults
• CPR and Pediatric First Aid certifications
• Health & Safety Training certificates — 15 hours, required of all center staff who provide child care as well as family child care home licensees, their staff, and substitute adults (HSC 1596.866, as amended by AB 150, effective June 29, 2026)
• Water quality test if on well water
• Lead and asbestos disclosure for older buildings
• Licensing fees (varies by capacity)

Application review takes 30-90 days before the pre-licensing inspection is scheduled.

Step 6: Build Staffing to Title 22 Ratios

California Title 22 staff-child ratios for Child Care Centers:

Age Group	Staff-Child Ratio	Max Group Size
Infant (under 2 years)	1:4	12
Toddler component (18–30 months) — optional, and only with an approved toddler component and written parent permission	1:6	12. Without an approved toddler component an 18–24 month old is still an infant at 1:4
Preschool (30 months to entering 1st grade)	1:12 — or 1 teacher + 1 aide per 15, or a fully qualified teacher + qualified aide per 18	No group-size cap in 22 CCR 101216.3

Title 5 (Education Code) regulates state-subsidized child care centers (CCTR, CSPP, General Child Care) with stricter ratios than Title 22 — typically 1:3 infants, 1:4 toddlers, 1:8 preschool. If you plan to serve subsidized families, expect Title 5 requirements layered on top of Title 22.

Staff qualifications under 22 CCR 101215.1 through 101216.3: (101215 covers the administrator and 101216 the general personnel rules; the director, teacher, aide and ratio requirements are in the decimal sections.)

• Director — any one of four paths under 22 CCR 101215.1(h): (1) high school/GED + 15 semester units (12 in child growth and development, family and community, and program/curriculum, plus 3 in administration or staff relations) + 4 years teaching experience; (2) an AA in ECE or child development + 3 administration units + 2 years; (3) a BA in ECE or child development + 3 administration units + 1 year; or (4) a Child Development Site Supervisor or Program Director Permit
• Teacher: may begin with 6 ECE semester units (or an Assistant Permit) while enrolled toward the rest; fully qualified is 12 ECE units + 6 months of work experience in a licensed center, or a Child Development Teacher Permit
• Aide: No prior ECE training required; must be 18+
• Infant program director: Additional 3 units in infant/toddler care

Step 7: Pass Your Pre-Licensing Inspection

A CCLD licensing analyst conducts a walk-through before issuing your license. The inspector verifies:

• Minimum 35 sq ft of indoor activity space and 75 sq ft of outdoor activity space per child, both calculated on total licensed capacity rather than daily attendance. Bathrooms, halls, offices, isolation areas, food-prep and storage do not count indoors; pools, pool decking and natural hazards do not count outdoors, and the playground fence must be at least four feet high
• Sleeping accommodations meet safe sleep standards (especially infants — firm mattress, no soft bedding)
• Hand-washing sinks, diapering stations, and separation of diaper-change area from food prep
• Food prep area clean, organized, with refrigeration at 41°F
• Chemicals, cleaning products, and medications locked in inaccessible storage
• Outdoor playground — fencing at least 4 feet, age-appropriate equipment, impact-absorbent surfacing under climbers/swings
• Fire extinguishers, smoke detectors, carbon monoxide detectors, first aid kit
• Emergency disaster plan posted; evacuation drills logged
• Required postings: license, staff schedule, menu, parent’s rights, how to file a complaint with CCLD
• Pool/spa fencing (if applicable) — Drain Act compliance required

The CCLD inspector also interviews the director and staff to confirm knowledge of Title 22 basics, ratio compliance during nap time and transitions, and incident reporting procedures.

Expect 90-180 days from application submission to license issuance for a new CCC; 60-120 days for a new FCCH. Any failed inspection item triggers a re-inspection after corrections are made.

Step 8: EDD, Workers’ Comp, Insurance

Once you hire, register with EDD within 15 days of paying $100+ in wages. California payroll taxes: UI 3.4% new employer on $7K; ETT 0.1%; SDI 1.3% no wage cap.

Workers’ compensation insurance is required from employee one. California’s workers’ compensation rating bureau sets an advisory pure premium rate of $1.936 per $100 of payroll for day care centers (class 9059) effective September 1, 2026 — roughly $1,936 per $100,000 of payroll. That rate has climbed steadily: $1.630 in 2024, $1.840 in 2025, $1.936 in 2026. Treat it as a floor for budgeting, not a quote: the WCIRB rate excludes insurer expense, profit and your own experience modification, all of which push the premium you are actually charged above it. Buy from any commercial carrier or State Fund.

Professional liability insurance is essential given the population served. Combined GL + professional liability typically runs $1,500-$4,500/year for a small center. Many insurers also require:

• Abuse and molestation coverage (often excluded from base GL — buy separately)
• Corporal punishment exclusion waiver
• Commercial auto if you transport children
• Property insurance for the facility

Choosing coverage for a home daycare or a center? Read our California daycare insurance costs and coverage. Compare the family-home options, center exposures and exclusions before requesting your quote.

Step 9: Local Registration, Subsidy Programs, and Planning Around UPK

Resource & Referral Agencies

Register with your county’s Resource & Referral (R&R) agency. R&Rs are the referral pipeline for families seeking care, and they’re the gateway to subsidy programs.

Subsidy Contracts

California runs several subsidized child care programs administered by CDSS (transferred from CDE in recent years under AB 131):

• CalWORKs Child Care — for families receiving CalWORKs cash aid
• Alternative Payment Program (CalWORKs Stage 2/3)
• CCTR (General Child Care) — for income-eligible working families
• CSPP (California State Preschool Program) — now increasingly coordinated with UPK

Subsidy contracts are often income floors for rural and lower-income markets. Contract requirements include meeting Title 5 ratios, higher staff qualifications, curriculum requirements, and stricter reporting.

The UPK Reality Check

California’s Universal Prekindergarten completed its multi-year rollout in Fall 2025. All 4-year-olds are now eligible for free public Transitional Kindergarten. Enrollment reached 213,313 students in 2025-26, the California Department of Education’s Census Day count — a 20.1% increase over the prior year.

For a new California daycare, this means:

• The 4-year-old private preschool market is shrinking. Don’t build a financial model assuming full-day pre-K tuition from 4-year-olds will be a primary revenue tier.
• Infant and toddler demand is up. Public TK doesn’t cover children under 4, and working parents still need wraparound care. Some centers that used to operate as mixed-age preschools are re-licensing for infant/toddler-only operations.
• Wrap-around care for TK students is a growing niche. Families using public TK often need before/after-care from 7 AM to 6 PM, which schools don’t provide. Licensed programs that partner with local elementary districts for wrap-around care are capturing a new revenue channel.
• Mixed-delivery UPK contracts — some districts contract with licensed child care centers to deliver UPK instead of operating it in-house. These are high-capacity subsidy contracts if you can meet Title 5 / UPK quality standards.

CalSavers

As of January 1, 2026, every California employer with at least one W-2 employee must offer a qualified retirement plan or register with CalSavers.

California Daycare Market Context

• Demand: California has roughly 2 million children under 5 and sustained structural demand for care. The state operates roughly 45,000 licensed child care providers (CCCs + FCCHs combined).
• Infant/toddler gap: Post-UPK, the unmet need is most acute for infants (under 2, in Title 22 terms) and toddlers. Infant care has the tightest 1:4 ratios, lowest capacity per licensed space, and the highest per-child rates — often $2,000-$3,500/month in coastal metros.
• What the market pays: the federal childcare price database puts California’s median price for full-time center-based infant care at $379.21 per week — about $1,643 a month by our arithmetic. Home-based infant care runs $284.37 per week and center-based preschool $224.99 per week (2022 data year, the latest published). Prices vary widely by county; the same federal database publishes county-level figures, and our childcare prices by state table sets California against the rest of the country.
• Workforce pressure: California child care pay is low relative to the cost of living, and it is the largest line in a center’s budget. BLS median hourly wages in California (May 2025): childcare workers $19.24 ($40,020 a year), preschool teachers $22.79 ($47,400), and preschool and daycare administrators $32.26 ($67,100). The 2026 state minimum wage of $16.90 (plus local minimums up to $19-$20+ in SF Bay) compresses the gap between center staff and fast food workers, making recruitment harder than ever.
• Facility costs: Licensing a brand-new Child Care Center requires facility square footage expensive anywhere in CA coastal metros. Home-based FCCHs avoid this — one reason FCCHs are the largest segment of California child care despite the smaller capacity.

Cost to Start a Daycare in California

Cost Category	Small Family Home (8 kids)	Child Care Center (40-60 kids)
LLC + first-year FTB	$890	$890
CDSS application + licensing fees	$75-$150	$500-$2,500
LiveScan fingerprinting (household + staff)	$150-$400	$1,000-$2,500
CPR, First Aid, 15-hour Health & Safety training	$200-$500	$600-$1,500 (per staff)
Home/facility modifications (safety, play area, fencing, diaper station)	$3,000-$10,000	$40,000-$150,000
Lease deposits + first 2 months rent (center only)	N/A	$15,000-$50,000
Fire clearance, occupancy, and building permits	$0 for a small family child care home (exempt under HSC 1597.455); $300-$1,000 for a large home	$2,000-$15,000
Furniture, cribs, toys, educational materials	$2,000-$5,000	$15,000-$40,000
Curriculum, training materials, assessments	$300-$1,000	$2,500-$7,000
Insurance (GL + PL + WC + abuse-molestation) yr 1	$1,500-$3,500	$8,000-$20,000
City business license	$0 — prohibited by HSC 1597.45(b)	$200-$800
Marketing + enrollment materials	$300-$1,500	$3,000-$12,000
Working capital (before full enrollment)	$2,000-$6,000	$20,000-$50,000
Total	$10,800-$30,000	$108,000-$350,000

Related California Business Guides

← Back to all California business guides

Three requirements first-time applicants routinely miss

• 12 hours of continuing education every year, starting January 1, 2027.
  Everyone covered by the 15-hour training rule — all center staff who provide child care,
  family child care home licensees, their staff, and substitute adults — must complete at
  least 12 hours of annual continuing education from January 1, 2027. The statute lists the
  topics: emergency and disaster preparedness, premises safety, safe sleep and SIDS prevention,
  shaken baby syndrome and child maltreatment, transporting children safely, infectious diseases,
  food and allergic reactions, hazardous materials, and medication administration.
• A large family child care home requires a year of prior experience. No home
  can be licensed as a large family child care home unless the provider has at least one
  year’s experience as a regulated small family child care home operator or as an
  administrator of a licensed child care center. The CDSS director may waive this on a finding of
  sufficient qualifying experience, but plan for it rather than assume the waiver.
  
• Your own children under 10 count toward capacity. A small family
  child care home is licensed for eight or fewer children including children under 10 years of
  age who reside at the home; a large home is 7 to 14 on the same basis. Providers routinely
  plan a roster as though their own kids are not in the count. They are.
  
• Going from 12 to 14 children in a large home has its own four conditions.
  A large family child care home may care for more than 12 and up to 14 children only if: at least
  one child is enrolled in and attending kindergarten or elementary school and a second child is at
  least six; no more than three infants are in care at any time more than 12
  children are present; the licensee notifies a parent that up to 13 or 14 children may be in the
  home at once; and, on leased or rented property, the licensee has the owner’s written
  consent.
  
• Going from six to eight children in a small home has four conditions, all of
  them. A small family child care home may care for more than six and up to eight
  children without an additional adult only if: at least one child is enrolled in and attending
  kindergarten or elementary school and a second child is at least six; no more than two infants
  are present at any time more than six children are in care; the licensee notifies every parent
  that up to seven or eight children may be in the home at once; and, if the home is rented or
  leased, the licensee has the property owner’s written consent.
  

Frequently Asked Questions

Who licenses daycares in California?

The California Department of Social Services, Community Care Licensing Division (CDSS CCLD) licenses all child care centers and family child care homes under Title 22 of the California Code of Regulations. Licensing is regional — you apply through your nearest CCLD regional office (LA, San Diego, San Francisco, Sacramento, San Jose, Fresno, and others). Every applicant must attend a mandatory pre-application orientation before submitting their license application.

What are California’s daycare staff-to-child ratios?

Under Title 22 for Child Care Centers: Infants (Title 22 defines an infant as under 2 years) 1:4, group capped at 12. A toddler component (18–30 months) at 1:6 is optional and requires an approved component plus written parent permission — without it an 18–24 month old is still 1:4. Preschoolers (30 months to first grade) 1:12, or 1 teacher + 1 aide per 15, or a fully qualified teacher + qualified aide per 18; there is no group-size cap for preschool. Title 5 state-subsidized programs have stricter ratios (typically 1:3 infant, 1:4 toddler, 1:8 preschool). Family Child Care Homes have separate capacity rules — Small 8 (up to 8 kids) and Large 14 (up to 14 with an assistant), with age-mix restrictions.

Do I need TrustLine registration or CCLD background check for my daycare staff?

Licensed daycare staff use the CDSS CCLD background check process, which is stricter than TrustLine and includes LiveScan fingerprinting against California DOJ, FBI, and the California Child Abuse Central Index. TrustLine is separate — it’s California’s background check registry for license-exempt in-home caregivers like nannies and babysitters, not licensed daycare staff. Every adult with regular child contact at your daycare (including, for family child care homes, all adult household members) must pass the CCLD background check before starting work with children.

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

Expect 90-180 days for a Child Care Center from application submission to license issuance, and 60-120 days for a Family Child Care Home. The timeline includes mandatory pre-application orientation, LiveScan fingerprint clearance (2-6 weeks), application review (30-90 days), and pre-licensing facility inspection. Plan for longer if any background-check exemptions are needed. Don’t sign a commercial lease assuming you can be operational in 60 days — build the timeline around CCLD’s process.

How has California’s Universal Prekindergarten (UPK) affected the daycare market?

UPK completed full implementation in Fall 2025, making free public Transitional Kindergarten available to every 4-year-old in California — 213,313 TK students enrolled statewide in 2025-26. This has compressed the private preschool market for 4-year-olds but left infant and toddler demand strong. New California daycares should plan revenue models around infant/toddler care (ages 0-36 months) rather than 4-year-old preschool. Wrap-around care for TK students (before/after school) and mixed-delivery UPK contracts with local districts are growing revenue channels.

Do I need an LLC to start a family child care home in California?

No — you can operate a Family Child Care Home as a sole proprietor. Many solo FCCH operators skip the LLC to avoid California’s $800 annual franchise tax. That said, because children are in your home with chemicals, pools/hot tubs (if present), and transportation, the liability exposure is significant. An LLC separates your personal assets from business liability. If you’re running a Small 8 solo, staying sole prop may be reasonable; if you’re running a Large 14 with an assistant or plan to add a second home, the LLC’s $800 is worth it.

Sources

Source	What it covers
California Code of Regulations, Title 22, Division 12 (Barclays official edition)	Chapter 1, child care centers: director qualifications and the four education-and-experience paths (§ 101215.1); teacher qualifications, including the six-unit start and twelve-unit fully qualified standard (§ 101216.1); teacher aide rules (§ 101216.2); the teacher-child ratio of one to 12, one teacher and one aide to 15, and a fully qualified teacher and qualified aide to 18 in a preschool program (§ 101216.3); the optional 18-to-36-month toddler component (§ 101216.4); 35 square feet of indoor activity space per child on licensed capacity (§ 101238.3); 75 square feet of outdoor activity space per child, the four-foot fence and the cushioning requirement (§ 101238.2); licensing fees (§ 101187). Chapter 3, family child care homes: staffing ratio and capacity, including the four-infant and six-child tiers and the rule that the licensee’s own children under 10 count (§ 102416.5); fire safety clearance for large homes (§ 102371); fees (§ 102384)
Health and Safety Code § 1596.803	The statutory fee schedule: family day care $73 original and annual for capacity 1-8 and $140 for 9-14; centers $484 original and $242 annual at capacity 1-30, rising to $2,420 and $1,210 above 120; orientation fees of $25 for a family child care home session and $50 for a center session
Health and Safety Code § 1596.866	The 15-hour health and safety training and who must take it; pediatric first aid and CPR renewed every two years; anaphylaxis and epinephrine auto-injector instruction required on and after January 1, 2026; a minimum of 12 hours of continuing education each year beginning January 1, 2027; training may not be a home study course
Health and Safety Code § 1597.44	The four conditions for a small family day care home to care for more than six and up to eight children without an additional adult attendant
Health and Safety Code § 1597.45	Family day care homes are a residential use by right, and a local jurisdiction may not impose a business license, fee or tax for operating a small or large family daycare home
Health and Safety Code § 1597.455	A small family daycare home is outside the fire code articles but must have a fire extinguisher, a smoke detector and one or more carbon monoxide detectors
California Department of Social Services, Child Care Licensing	Community Care Licensing Division regional offices, orientation registration and current application forms

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