Last updated: April 24, 2026

How to Start a Daycare in California (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 statewide enrollment projected at 229,000 students in 2025-26 — roughly triple the 2021-22 level. 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 max 12 group, toddler 1:6, preschool 1:12 max 36); 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 and 101216; 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	Free	Before application
Child Care Center License (capacity-based fee)	CDSS CCLD	Application fee + annual fee scaled by capacity (typically $200-$2,500+)	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 Preventive Health and Safety Training (FCCH)	CDSS-approved trainers	$100-$200	Before license issuance (family home)
TB Clearance for All Staff	Licensed healthcare provider	$25-$75 per person	Before opening
Fire Clearance	Local fire marshal	$100-$500+	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	~$2,500-$5,000/year per $100K child care payroll	Day of first hire
General + Professional Liability Insurance	Commercial carrier	$1,500-$4,500/year combined	Before opening
City Business License	City Finance	$50-$500+ annually	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	Up to 8 children (6 if no school-age)	Your own residence	$8,000 – $25,000
Large Family Child Care Home	Up to 14 children (with assistant)	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. Orientations run in LA, San Diego, Sacramento, San Francisco, San Jose, Fresno, and other regional hubs. 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 free but mandatory. 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:

• Form LIC 281 (Application for License) for Child Care Centers, or LIC 279 for Family Child Care Homes
• 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
• Health and TB clearance for all adults
• CPR and Pediatric First Aid certifications
• Health & Safety Training certificates (15 hours for FCCH)
• 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 18 months)	1:4	12
Toddler (18-30 months)	1:6	No max specified
Preschool (30 months to entering 1st grade)	1:12	36

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 101215-101216:

• Director: AA degree with 12 units in early childhood education OR 60 college units including 6 ECE units + 4 years experience
• Teacher: 12 semester units in ECE + 50 days experience, or 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 per child indoors; 75 sq ft per child outdoors
• 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. Child care class codes run roughly $2,500-$5,000 per $100,000 of payroll — lower than cleaning or food service because injury rates are lower. 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

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 roughly 229,000 students in 2025-26 (about 59-75% of eligible 4-year-olds in different regions).

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 (0-18 months) and toddlers (18-36 months). 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.
• Geographic disparities: San Francisco, Silicon Valley, and West LA have the highest monthly rates ($2,500-$4,500 infant care). Central Valley, Inland Empire, and Sacramento run $900-$1,800. Rural areas have chronic provider shortages.
• Workforce pressure: California’s child care workforce is historically underpaid — median teacher wage ~$18/hour. 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	$300-$1,000	$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	$50-$300	$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

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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 (under 18 months) 1:4 with a max group size of 12. Toddlers (18-30 months) 1:6. Preschoolers (30 months to first grade) 1:12 with a max group size of 36. 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 — roughly 229,000 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.