Last updated: May 4, 2026

How to Start a Daycare in Idaho (2026)

Starting a childcare business in Idaho means working through the Idaho Department of Health and Welfare (IDHW) and its partner agency IdahoSTARS to obtain a state childcare facility license. Idaho uses a tiered licensing fee structure based on facility capacity – from $100 for family homes serving up to 6 children through $325 for large centers with 26 or more children. The application process allows six months to complete after IDHW receives your signed application, but all documentation must be submitted at least 45 days before the deadline. Background checks, CPR certification, facility inspections, and ongoing training requirements all apply regardless of license type.

Idaho’s quality improvement system – IdahoSTARS – operates a two-track quality rating system that childcare providers should understand before licensing. The Steps to Quality (STQ) program runs providers from Step 1 through Step 6 using Environment Rating Scale (ERS) assessments. The Quality Achievers (QA) program offers Growing Star and Star Achiever recognition for providers meeting specific quality benchmarks. Quality rating matters practically, not just for marketing: families accessing the Idaho Child Care Program (ICCP) – Idaho’s childcare subsidy – can only use licensed, ICCP-certified providers, and quality ratings increasingly influence subsidy payment rates. The Treasure Valley’s population boom has created significant unmet demand for licensed childcare, making Idaho one of the more favorable markets in the Mountain West for new childcare operators.

Idaho Daycare License Requirements at a Glance

Requirement	Agency	Cost	Notes
Family Home License (up to 6 children)	IDHW / IdahoSTARS	$100	Annual renewal required
Group Facility License (7-12 children)	IDHW / IdahoSTARS	$100	Annual renewal required
Small Center License (13-25 children)	IDHW / IdahoSTARS	$250	Annual renewal required
Large Center License (26+ children)	IDHW / IdahoSTARS	$325	Annual renewal required
Background checks (applicants, staff, household 13+)	IDHW	Varies per person	Required before license issuance; maintained annually
Pediatric CPR + first aid (at least 1 staff on-site always)	Approved training provider	~$60-$100 per certification	Renews every 2 years
Health and safety inspection	IDHW	Included in licensing fee	Pre-opening; annual thereafter
Fire safety inspection	Local fire authority	Varies by jurisdiction	Pre-opening; annual thereafter
Ongoing training (4 hours/year minimum)	Approved providers	Varies; free resources available through IdahoSTARS	Per staff member annually
LLC formation (recommended)	Idaho Secretary of State	$103 online	Annual report free
General liability + abuse/molestation insurance	Private carrier	~$1,500-$4,500/year	Childcare-specific policy required

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

Step 1: Form Your Business Entity

Before applying for a childcare license, form an LLC with the Idaho Secretary of State for $103 online via the SOSBiz portal at sos.idaho.gov/business-services. Annual reports are free, due by the last day of your anniversary month.

An LLC is especially important for childcare operations. Childcare businesses face greater liability exposure than most service businesses – injuries to children while in your care, allegations of abuse or neglect, or property damage incidents can all generate significant legal claims. An LLC separates your personal assets (home, savings, vehicles) from claims against your business. A sole proprietorship provides no such protection.

Step 2: Determine Your License Type and Contact IDHW/IdahoSTARS

Idaho childcare licensing is administered by the Idaho Department of Health and Welfare (IDHW) in partnership with IdahoSTARS. The first step is determining which license type applies to your planned operation.

Idaho Childcare License Types and Fees

• Family Home: Serves up to 6 children. Fee: $100. Typically operated from the provider’s residence. Most home-based providers start here.
• Group Facility: Serves 7-12 children. Fee: $100. Usually a larger home-based operation or small dedicated facility.
• Small Center: Serves 13-25 children. Fee: $250. Commercial facility or dedicated childcare building.
• Large Center: Serves 26 or more children. Fee: $325. Full-scale commercial childcare center.

How to Start Your Application

Contact IdahoSTARS to begin:

• Phone: 1-800-926-2588 or dial 2-1-1 statewide
• Website: idahostars.org/Child-Care-Providers/Child-Care-Licensing
• IDHW: healthandwelfare.idaho.gov

Application Timeline Rules

• You have 6 months to complete the application process after IDHW receives your signed, completed application
• All required documentation must be submitted at least 45 days before the 6-month deadline
• Do not begin caring for children in a group setting before your license is issued – operating without a license is a violation of Idaho Code § 39-1101

Step 3: Background Checks for All Required Individuals

Idaho requires background checks for a broad category of individuals connected to the childcare operation. This is a strict requirement – a disqualifying background check result can prevent license issuance or require removal of that individual from any role at the facility.

Who Must Have a Background Check

• All childcare center applicants and owners
• All staff members, including volunteers who have unsupervised access to children
• All household members over age 13 at a home-based facility who have unsupervised contact with children or are regularly present on the premises

Background checks are processed through IDHW. Results must be received and cleared before the license can be issued. The background check requirement is ongoing – any new staff hire or household member addition requires a new background check. Results are reviewed for violent crimes, sex offenses, child abuse history, and drug convictions. Disqualifying offenses are specified in Idaho childcare regulations.

Idaho Home of Record Checks

In addition to Idaho State Police records, background checks for childcare licensure include searches of national sex offender registries and the Idaho child abuse and neglect registry. Individuals with histories in other states may need out-of-state record verification – IDHW will advise on any additional documentation required based on your employment history.

Step 4: Pediatric CPR and First Aid Certification

Idaho requires that at least one staff member certified in pediatric CPR and first aid be present on the premises at all times during operating hours. Key details:

• Certification must be pediatric-specific (not standard adult CPR) – courses from the American Red Cross, American Heart Association, and other accredited programs qualify
• Most Idaho providers require all staff to be certified, not just one – this eliminates coverage gaps when the primary certified staff member is absent
• Cost: approximately $60-$100 per person for a combined pediatric CPR + first aid course
• Certifications expire every 2 years – build renewal tracking into your staff management

Step 5: Health and Fire Safety Inspections

Your facility must pass two types of pre-opening inspections and maintain compliance through annual reinspections:

Health and Safety Inspection (IDHW)

Conducted by Idaho IDHW, the health inspection evaluates:

• Indoor and outdoor space requirements (square footage per child)
• Safe sleeping arrangements for infants (firm, flat sleep surfaces; no soft bedding)
• Proper food storage and preparation areas
• Restroom facilities and diaper-changing areas
• Emergency evacuation plan (posted, practiced)
• Staff-to-child ratios (see below)

Fire Safety Inspection (Local Fire Authority)

Your local fire department or fire authority will inspect for:

• Working smoke detectors and carbon monoxide detectors
• Fire extinguishers (proper type, current inspection tag)
• Clear emergency exit routes with posted evacuation maps
• Fire suppression systems where required by building code

Staff-to-Child Ratios

Idaho childcare regulations specify minimum staff-to-child ratios that your facility must maintain at all times. Exact ratio requirements are specified in IDHW administrative rules and vary by the age of children served. Common Idaho childcare ratio requirements include:

• Infants (birth to 18 months): 1 adult per 4 children (maximum group of 8)
• Toddlers (18 months to 3 years): 1 adult per 5-6 children
• Preschool (3-5 years): 1 adult per 10-12 children
• School-age (5+): 1 adult per 15-20 children depending on supervision context

Verify current Idaho ratio requirements with IDHW and IdahoSTARS, as they can be updated by rule. Ratio requirements directly affect your staffing model and operating costs – a lower ratio (more adults per child) is a competitive differentiator for premium-positioned centers but increases payroll costs.

Step 6: Ongoing Training Requirements

Idaho requires that all staff members, owners, and operators complete a minimum of 4 hours of ongoing training related to child development every 12 months. Key details:

• Training must be from IDHW-approved programs and providers
• Topics must relate to child development, health and safety, early childhood education, or childcare management
• IdahoSTARS offers free and low-cost training resources through the Idaho Professional Development (Idaho PD) system
• Maintain thorough records of all completed training for each staff member – IDHW may request documentation during license renewal inspections
• 4 hours is the minimum; providers pursuing IdahoSTARS quality rating must complete significantly more training to advance through quality levels

Step 7: Enroll in IdahoSTARS and Pursue Quality Rating

IdahoSTARS is Idaho’s quality rating and improvement system (QRIS) for childcare providers. All licensed providers should be enrolled in IdahoSTARS – it is the gateway to the Idaho Child Care Program (ICCP) subsidy and to professional development resources.

Steps to Quality (STQ)

The Steps to Quality program is a 6-step progression that measures and supports quality improvement:

• Step 1: Basic compliance – licensed, enrolled in IdahoSTARS, active RISE account
• Steps 2-5: Use Environment Rating Scale (ERS) assessments to measure quality across six quality standards; each step adds new indicators
• Step 6: Highest STQ recognition – sustained quality across all standards

Quality Achievers (QA)

A parallel recognition track within IdahoSTARS:

• Growing Star: Meets Idaho Quality Essentials baseline across seven quality domains (Business Practices, Health/Safety/Wellness, Environments/Curriculum, Child Development, Family/Community Partnerships, Pyramid Model, National Accreditation)
• Star Achiever: Quality Essentials plus additional high-quality Achievement indicators

Contact IdahoSTARS Quality Achievers at QA@idahostars.org or call 1-800-926-2588.

ICCP Subsidy Connection

The Idaho Child Care Program (ICCP) is Idaho’s federally funded childcare subsidy for income-qualifying families. To accept ICCP subsidy payments, your facility must be:

• Licensed by IDHW
• ICCP-certified (a separate certification from the license)
• Enrolled in IdahoSTARS with an active account

ICCP certification allows you to serve families who receive subsidy assistance, significantly expanding your potential client base. ICCP clients represent a stable, government-backed revenue stream. Contact IDHW childcare services at 1-800-926-2588 for ICCP certification information.

Step 8: Get Insurance

Commercial general liability insurance designed for childcare operations is essential and is typically required by lease agreements and some licensing contexts:

• Commercial general liability: $1,000,000 per occurrence minimum – covers slip and fall, playground injuries, property damage
• Abuse and molestation coverage: Not included in standard GL policies; must be added as a rider or obtained through a childcare-specific policy. Essential for any licensed childcare operation.
• Annual cost: approximately $1,500-$4,500/year depending on enrollment capacity, facility type, and coverage limits
• Workers’ compensation: Required for any employees (Idaho’s 1+ employee threshold)

Idaho Childcare Market: Where the Demand Is

Idaho has a well-documented childcare shortage that predates the Treasure Valley growth surge. The fastest-growing counties – Ada and Canyon – have seen population gains that outpaced childcare capacity additions. Boise, Meridian, and Nampa have significant waitlists at established centers, and infant care in particular faces the greatest supply constraint. The combination of high demand, an ICCP subsidy system that funds a portion of care, and Idaho’s relatively lower commercial real estate costs (compared to Boise’s California-origin competitor markets) creates a genuinely favorable environment for new childcare operators.

The major demand drivers in the Treasure Valley are the employer base (Micron Technology, St. Luke’s, Saint Alphonsus, Boise State University all have large working-parent employee populations) and the demographic profile (Ada County has a younger-than-average population with high birth rates by Mountain West standards). Coeur d’Alene and Post Falls in northern Idaho have similar dynamics, driven by Spokane-area job spillover and in-migration from western Washington. Eastern Idaho – Idaho Falls, Pocatello, Rexburg – has a significant LDS family demographic with consistently high demand for childcare services, particularly during the school year when ISU and BYU-Idaho are in session.

Cost to Start a Daycare in Idaho

Item	Cost	Notes
LLC formation (Secretary of State)	$103	One-time; annual report free
Childcare facility license fee	$100-$325	Annual; depends on capacity (family home $100, large center $325)
Background checks (staff + household 13+)	Varies per person	Required for all covered individuals; per IDHW fees
Pediatric CPR + first aid certification	~$60-$100 per person	Renews every 2 years
Fire safety inspection	Varies by jurisdiction	Annual reinspection required
General liability + abuse/molestation insurance	~$1,500-$4,500/year	Annual; childcare-specific policy required
Facility setup and childproofing	$2,000-$20,000+	One-time; depends on size and condition
Equipment, toys, and learning materials	$1,000-$8,000	One-time startup
Year 1 Total (home-based family daycare)	~$5,000-$15,000	License + insurance + setup + CPR
Year 1 Total (small/medium center)	~$20,000-$80,000+	Includes facility lease, buildout, staffing, licensing

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Frequently Asked Questions

Who licenses daycares in Idaho and what are the fees?

Idaho childcare licensing is administered by the Idaho Department of Health and Welfare (IDHW) in partnership with IdahoSTARS. License fees depend on facility capacity: family homes (up to 6 children) and group facilities (7-12 children) each cost $100; small centers (13-25 children) cost $250; large centers (26+ children) cost $325. All licenses are renewed annually. Start the process at healthandwelfare.idaho.gov or call IdahoSTARS at 1-800-926-2588.

How long does Idaho daycare licensing take?

Idaho allows 6 months to complete the licensing application after IDHW receives your signed, completed application. All required documentation must be submitted at least 45 days before the 6-month deadline. Practically, background checks, CPR certification, facility inspections, and documentation preparation take 3-5 months combined. Start the process well before your planned opening date and do not begin caring for children before receiving your license.

Who needs a background check for an Idaho daycare?

All childcare applicants, all staff members, and any household members over age 13 who are regularly present at the facility or have unsupervised access to children must pass a background check through IDHW. For home-based daycares, this includes all household members in that age range. Background check results must be cleared before the license is issued, and checks must be maintained throughout operation for all covered individuals.

What is IdahoSTARS and do I need to use it?

IdahoSTARS is Idaho’s quality rating and improvement system (QRIS) for childcare providers, operated in partnership with IDHW. All licensed Idaho childcare providers should enroll in IdahoSTARS – it is the gateway to the Idaho Child Care Program (ICCP) subsidy and to Idaho professional development resources. The two quality tracks are Steps to Quality (STQ) (6 steps using Environment Rating Scale assessments) and Quality Achievers (Growing Star and Star Achiever recognition). Call 1-800-926-2588 or visit idahostars.org.

What is the Idaho Child Care Program (ICCP) and how do I qualify?

The Idaho Child Care Program (ICCP) is Idaho’s federally funded childcare subsidy program for income-qualifying families. To accept ICCP subsidy payments, your facility must be licensed by IDHW, separately ICCP-certified, and enrolled in IdahoSTARS with an active account. ICCP certification allows you to serve lower-income families and adds a government-backed revenue stream to your client mix. Contact IDHW at 1-800-926-2588 for ICCP certification requirements and income eligibility thresholds.

Does Idaho require workers’ compensation for daycare employees?

Yes. Idaho requires workers’ compensation coverage for any employer with 1 or more employees, with no small business exemption. Coverage must be in place before the first employee’s first day. For daycare operations, which often employ multiple staff, workers’ comp is both a legal requirement and a practical protection against the physical demands of childcare work (lifting injuries, slip and fall). Contact the Idaho Industrial Commission at iic.idaho.gov for carrier information. Rates dropped 2.5% in January 2026.