How to Start a Daycare in Delaware (2026)

Last updated: May 4, 2026

Starting a licensed daycare in Delaware means working with the Office of Child Care Licensing (OCCL) within the Delaware Department of Education. Delaware’s DOE took over childcare licensing, and OCCL is now the single licensing authority for all three facility types: Family Child Care (home-based, up to 9 unrelated children), Large Family Child Care, and Child Care Centers. Unusually, Delaware charges no licensing fee – a meaningful cost advantage over states like Maryland ($60-$400) and Pennsylvania ($175+). The minimum indoor space standard is 70 square feet per child of usable space. Staff ratios run from 1:4 for infants to 1:12 for older preschoolers. Directors must hold a CDA credential or associate degree in early childhood education plus 85 clock hours of approved training before assuming the role.

Delaware’s childcare market reflects its geography. New Castle County holds more than 60% of the state’s population and generates the largest center-based childcare demand in the Wilmington-Newark corridor. Sussex County’s rapid retiree-driven population growth is creating emerging childcare demand in beach-adjacent communities previously underserved. Kent County’s Dover area is anchored by Dover Air Force Base families and state government employees. Understanding where demand concentrates – and which families qualify for Purchase of Care subsidies – shapes the business case for a new childcare program.

Delaware Daycare Licensing Requirements at a Glance

Requirement	Detail	Contact / Agency
Licensing Authority	Office of Child Care Licensing (OCCL), Delaware Department of Education	(302) 892-5800 (New Castle Co.); (302) 739-5487 (Kent/Sussex)
Licensing Fee	No state licensing fee	OCCL
Facility Types	Family Child Care (up to 9 unrelated children in home), Large Family Child Care, Child Care Center	OCCL determines applicable type
Indoor Space	70 sq ft usable per child; hallways, bathrooms, kitchen, storage excluded	Verified at pre-licensing inspection
Outdoor Space	90 sq ft per child; fence at least 4 feet high required	OCCL inspection
Ratio: Infants (<1 yr)	1 caregiver per 4 children; max 8 per group	OCCL regulation
Ratio: Young Toddlers (<2 yr)	1 caregiver per 6 children; max 12 per group	OCCL regulation
Ratio: Older Toddlers (<3 yr)	1 caregiver per 8 children; max 16 per group	OCCL regulation
Ratio: Young Preschoolers (<4 yr)	1 caregiver per 10 children; max 20 per group	OCCL regulation
Ratio: Older Preschoolers (<5 yr)	1 caregiver per 12 children; max 24 per group	OCCL regulation
Director Qualifications	CDA credential or associate degree in ECE + 85 clock hours approved training before role	OCCL verifies credentials
Background Checks	Required for all staff with direct child contact; before employment begins	OCCL process
QRIS Program	Delaware Stars for Early Success – 5-star voluntary system, administered by DOE	mychildde.org
Subsidy Program	Purchase of Care (POC) via Delaware Division of Social Services; ~185% FPL eligibility	dhss.delaware.gov/dss
Delaware Business License	$75/year; required for all Delaware businesses	onestop.delaware.gov

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

Step 1: Choose Your Facility Type

OCCL licenses three childcare facility categories:

Family Child Care

A Family Child Care home operates out of the provider’s residence and can serve up to 9 unrelated children depending on their ages. This is the most accessible entry point – lower capital requirements, no commercial lease needed, and a smaller regulatory scope. Infant care capacity is more limited because the 1:4 ratio applies, reducing total capacity when infants are enrolled. Contact OCCL before setting up to confirm the maximum capacity for your age mix.

Large Family Child Care

Large Family homes exceed the Family Child Care threshold and require an assistant caregiver. They operate in a residential setting with expanded capacity. For a Family Care provider who has grown their program and wants to serve more children, this is the transition category before a full center license is required.

Child Care Center

Centers operate in commercial or institutional facilities, separate children by age group, and can serve larger populations. The 70-square-foot-per-child minimum (usable indoor space only) determines your licensed capacity from your physical footprint. A 1,400-square-foot usable space licenses for 20 children. Budget accordingly – commercial space in Wilmington and Newark can be expensive relative to the licensed capacity it produces.

Step 2: Contact OCCL Before Construction or Renovation

Contact OCCL before signing a lease, purchasing property, or beginning construction. For a center, submit floor plans and have the space inspected – a facility that looks large enough can fall short of the 70-square-foot-per-child standard once non-usable areas are excluded. The pre-licensing process includes OCCL inspection, and may also require building department, fire marshal, and health department sign-off depending on facility type and county. Budget 60-120 days from first OCCL contact to license issuance for a new center. Family Child Care licensing typically moves faster. Delaware charges no licensing fee from OCCL.

Step 3: Meet Staff-to-Child Ratios

Ratios determine both minimum staffing and maximum licensed capacity. For mixed-age groups, the youngest child present governs the ratio – a room with one 18-month-old and ten 4-year-olds must maintain the young toddler ratio (1:6, max 12) rather than the preschool ratio (1:12, max 24). This mixed-age rule has significant capacity implications: plan age-group separation carefully to avoid reducing capacity below your break-even enrollment number. Delaware’s ratios are middle-of-pack nationally – stricter than some southeastern states, less strict than Massachusetts (1:3 infant) or New Hampshire (1:4 infant maximum group 8).

Step 4: Qualify Your Director

Directors must hold at least a CDA credential or an associate degree in early childhood education and complete 85 clock hours of OCCL-approved training before assuming the role. The 85-hour training requirement must cover topics designated by DOE – it cannot be general professional development. If you are an owner planning to serve as your own director, complete the training before your pre-licensing inspection. Document all credentials and training completion with official records; OCCL will verify these as part of the application process.

Step 5: Complete Staff Background Checks

All employees and volunteers with direct child contact must complete background checks before working with children. Delaware’s background check process includes criminal history review. Contact OCCL for the current approved fingerprinting vendors and required check types – requirements can be updated and OCCL’s guidance is authoritative. Background check processing typically takes 2-6 weeks; plan this into your hiring timeline so staff are cleared before your open date and before your pre-licensing inspection.

Step 6: Form Your Business and Get the Delaware Business License

File an LLC Certificate of Formation with the Division of Corporations at corp.delaware.gov for $110. Pay the flat $300 LLC franchise tax annually by June 1. Obtain a Delaware Business License from the Division of Revenue for $75/year at onestop.delaware.gov. Delaware has no sales tax, so childcare services are not subject to state sales tax. Delaware’s Gross Receipts Tax (GRT) applies to childcare revenues at 0.3983% for service businesses, with a $100,000 monthly exclusion – most smaller programs owe nothing in GRT. Delaware personal income tax on LLC pass-through income is graduated from 0% to 6.6% (top rate above $60,000).

Step 7: Handle Payroll Compliance

Delaware’s Healthy Delaware Families Act PFML requires employers with 10 or more covered employees to contribute 0.8% of wages (employer pays at least 50%). Benefits became available January 1, 2026. A center with 10-15 caregivers will hit this threshold. Unemployment insurance: new employers pay 1.0% on the first $14,500 of each employee’s wages in 2026. Workers’ compensation is required at one employee – childcare workers fall under NCCI code 9059 (child care). Delaware’s minimum wage is $15.00/hour. Report new hires within 20 days of start date at newhire-reporting.com/DE-Newhire.

Step 8: Pursue Delaware Stars and Accept Purchase of Care

Delaware Stars for Early Success is Delaware’s 5-star Quality Rating and Improvement System administered by DOE. Programs earn ratings across four areas: Learning Environment and Curriculum, Family and Community Partnerships, Management and Administration, and Professional Development and Qualifications. Star-rated programs appear in the state’s MyChildDE.org childcare finder, which is the primary search tool Delaware families use.

The practical business reason to pursue Delaware Stars is access to the Purchase of Care (POC) subsidy. The Division of Social Services’ POC program helps income-eligible families (approximately 185% of the Federal Poverty Level, roughly $61,500/year for a family of four in recent guidelines) pay for licensed childcare. Programs that accept POC payments benefit from guaranteed subsidy revenue for low-income children whose families could not otherwise afford center-based care. Delaware Stars enrollment is free; DOE provides technical assistance and professional development support to enrolled programs working toward higher ratings.

Delaware Childcare Market: Where Demand Concentrates

Delaware’s childcare demand is most concentrated in New Castle County. The Wilmington metro’s financial services, pharmaceutical, and professional services employers generate a large dual-income household base with childcare needs. Newark’s University of Delaware creates additional demand from faculty, staff, and graduate student families. The growing suburban corridor from Middletown south through Glasgow and Bear is one of Delaware’s fastest-growing residential areas and an underserved childcare market for center operators.

Sussex County presents a different opportunity. The wave of retirees relocating to beach-adjacent communities has a secondary effect: adult children who follow retiree parents often relocate with young children of their own. Georgetown and Seaford serve the county’s large agricultural and poultry-industry workforce, which includes a significant Spanish-speaking population. Bilingual English-Spanish programs serving this community address an underserved need. Kent County’s Dover Air Force Base housing generates demand for flexible-hour infant and toddler care aligned with military duty schedules – a niche that standard 7 a.m.-6 p.m. centers often struggle to fill.

Cost to Start a Daycare in Delaware

Cost Item	Estimated Amount	Notes
OCCL Licensing Fee	$0	No state childcare licensing fee in Delaware
LLC Formation	$110 one-time + $300/year franchise tax	Division of Corporations at corp.delaware.gov
Delaware Business License	$75/year	Renewable December 31; onestop.delaware.gov
Background Checks (per employee)	$25-$75 typical	Required for all direct-contact staff before employment
Facility Build-Out / Renovation	$15,000-$100,000+	70 sq ft/child usable; highly variable by location
Equipment, Furnishings, Supplies	$5,000-$25,000	Age-appropriate per classroom; outdoor playground equipment
General Liability Insurance	$1,500-$4,000/year	Childcare-specific policy recommended
Workers’ Compensation	NCCI code 9059; rate varies by carrier	Required at 1+ employee

Related Delaware Business Guides

← Back to all Delaware business guides

Frequently Asked Questions

What agency licenses daycares in Delaware?

The Office of Child Care Licensing (OCCL) within the Delaware Department of Education licenses all childcare facilities. Contact before construction: (302) 892-5800 for New Castle County, (302) 739-5487 for Kent and Sussex counties. There is no OCCL licensing fee – an unusual Delaware advantage over most states.

What are the staff-to-child ratios for a Delaware daycare?

Infants under 1 year: 1:4 (max 8 per group). Young toddlers under 2 years: 1:6 (max 12). Older toddlers under 3 years: 1:8 (max 16). Young preschoolers under 4: 1:10 (max 20). Older preschoolers under 5: 1:12 (max 24). For mixed-age groups, the youngest child present determines the applicable ratio – this rule significantly affects capacity planning.

What qualifications does a Delaware daycare director need?

Directors must hold at least a CDA credential or an associate degree in early childhood education, and must complete a minimum of 85 clock hours of OCCL-approved training before assuming the director role. Credential and training documentation must accompany the license application.

What is Delaware Stars for Early Success?

Delaware Stars for Early Success is Delaware’s voluntary 5-star Quality Rating and Improvement System administered by the Delaware DOE. Star-rated programs appear on MyChildDE.org, the state’s childcare finder. Programs must be star-rated to accept children whose families use the Purchase of Care (POC) subsidy. Enrollment is free; DOE provides technical assistance.

How much space does a Delaware daycare center need?

Minimum 70 square feet of usable indoor space per child. Hallways, bathrooms, kitchens, and storage are excluded. Outdoor play areas must provide at least 90 square feet per child, fenced to at least 4 feet high. Your licensed capacity equals your usable indoor square footage divided by 70.

Does Delaware charge a fee to license a daycare?

No. OCCL charges no state licensing fee for childcare facilities. You still need a Delaware Business License ($75/year) from the Division of Revenue, and should budget for building, fire, and health department inspections and the time cost of the pre-licensing process (60-120 days for a new center).