Last updated: May 3, 2026

How to Start a Daycare in Louisiana (2026)

Louisiana child care licensing is unusual in three ways that shape every business decision you make. First, child care moved from the Department of Children and Family Services (DCFS) to the Louisiana Department of Education (LDOE) Office of Early Childhood in 2014 – so what most other states regulate as “social services” Louisiana regulates as “education,” with the licensing rules in Bulletin 137 (Louisiana Administrative Code, Title 28, Part CLXI). Second, Louisiana has three license types (Type I, Type II, Type III) and the type you pick determines whether you can accept publicly funded children, what tax incentives parents get for using your center, and which Quality Start star rating you can earn. Third, Louisiana’s School Readiness Tax Credit is one of the most generous in the nation – parents using highly rated Type III centers receive refundable state tax credits scaled to the center’s star rating, which is a meaningful enrollment differentiator if you can earn 4 or 5 stars.

This guide walks through the LDOE licensing process, Bulletin 137 ratios, the CCCBC background-check stack, the Quality Start rating system, the Child Care Assistance Program (CCAP) subsidy that Type III centers can accept, and the realistic Louisiana startup numbers for a center serving 30 to 80 children.

Louisiana Daycare Requirements at a Glance

Requirement	Agency / Source	Cost	Notes
LLC formation (GeauxBiz)	Louisiana Secretary of State	$100	Initial Report included
Federal EIN	IRS	Free	Required before payroll
Type I/II/III center license	LDOE Division of Licensing	Application fees per LDOE schedule (Type III is free for nonprofits)	Required for any facility serving 7+ children for 12.5+ hours per week
CCCBC background check	LDOE Background Check Unit	Per FBI/LSP fingerprint fees (often $30-$60 per person)	Required for every staff member, owner, and adult household member
State Fire Marshal inspection	Louisiana Office of State Fire Marshal	Plan review fees apply	Required before initial licensure
Sanitation inspection	Louisiana Department of Health Office of Public Health	Free or per-fixture fee	Kitchen and food handling
Workers’ Compensation	LWCC or private insurer	NCCI 9059: typical 1.0-2.5% of payroll	Required at 1 employee or $3,000 payroll
General Liability + Sexual Abuse coverage	Private insurer	$1,500-$5,000/year typical	Most lenders and parents expect $1M+/$2M policy plus child sexual abuse rider
Quality Start rating (optional but valuable)	Louisiana Pathways at NSU Natchitoches	Free to participate	Required for highest CCAP reimbursement and School Readiness Tax Credit benefit
CCAP provider agreement (Type III only)	LDOE	Free	Allows enrollment of subsidy-eligible families

Bulletin 137: The Three License Types

Louisiana’s child care licensing scheme sorts every center into one of three license types based on funding source. The type determines what you can accept and what regulatory regime applies.

Type I License: Church or Religious Organization

Type I licenses are issued to early learning centers owned or operated by churches or religious organizations that are tax-exempt under Internal Revenue Code Section 501(c)(3) and receive no state or federal funds. Type I centers are subject to a slightly lighter set of standards than Type II or Type III, reflecting the constitutional caution about regulating religious-affiliated programs. Type I centers cannot accept Child Care Assistance Program (CCAP) subsidy and parents using Type I centers do not qualify for the School Readiness Tax Credit.

Type II License: Private-Pay Only

Type II centers either receive no state or federal funds or receive funds only from the U.S. Department of Agriculture’s child and adult care food program (CACFP). Type II centers serve private-pay families and operate under the full Bulletin 137 regulatory framework, but – like Type I – cannot accept CCAP subsidy.

Type III License: Publicly Funded

Type III licenses are issued to centers that directly or indirectly receive state or federal funds from sources beyond CACFP – typically CCAP, the Louisiana School Readiness Tax Credit indirectly through families, Head Start partnerships, or local public school district contracts for pre-K. Type III is the only license that allows you to accept CCAP-funded children, and Type III is the only license eligible for Quality Start star rating – which in turn is the only path to maximum CCAP reimbursement and to families’ School Readiness Tax Credit benefit.

Most new centers should aim for Type III if the business model includes serving low- and middle-income families. The administrative burden is higher, but the addressable market is dramatically larger.

Bulletin 137 Staff-to-Child Ratios

Louisiana’s age-based staff-to-child ratios under Bulletin 137 Chapter 17 are stricter than many states for infants and toddlers and looser than many states for school-age children:

Age Group	Maximum Staff-to-Child Ratio	Maximum Group Size
Non-walkers / Birth – 12 months	1:6	12
Toddlers 12-23 months	1:8	16
Two-year-olds	1:12	24
Three-year-olds (3-4 yrs)	1:14	28
Four-year-olds (4-5 yrs)	1:16	32
Five-year-olds (5-6 yrs)	1:20	40
School-age (6+ yrs)	1:25	50

Practical implication: The infant ratio (1:6) is what drives most center economics. Six infants typically generate $1,200-$2,500/week in tuition (NOLA-Baton Rouge urban rates), but require one full-time qualified caregiver who must be present every minute. Most Louisiana centers either limit infant capacity to one or two classrooms or charge a substantial premium for infant care to make the math work. By contrast, the 1:25 school-age ratio makes after-school care a more profitable mix at scale.

The CCCBC Background Check Stack (Bulletin 137 Chapter 18)

Louisiana requires every staff member, owner, volunteer with unsupervised access, and adult member of a family child care home household to hold a current Child Care Criminal Background Check (CCCBC) “determination of eligibility for child care purposes” issued by the LDOE Background Check Unit under Bulletin 137 Chapter 18.

The CCCBC includes:

• Louisiana State Police name-based and fingerprint-based criminal history check
• FBI national fingerprint-based criminal history check
• Louisiana Sex Offender registry check
• Louisiana State Central Registry check for substantiated child abuse or neglect
• Out-of-state equivalents for any state where the applicant has resided in the past 5 years (criminal history, sex offender, child abuse and neglect)

The CCCBC must be issued before the person can begin work in the licensed center. Hiring before clearance issues – or letting a clearance lapse without renewing – is a common cause of LDOE licensing violations and emergency suspensions.

Director Qualifications Under Bulletin 137

Every Louisiana licensed center must have a qualified director (the staff member responsible for day-to-day operations, management, and administration). Bulletin 137 accepts four pathways:

• Bachelor’s degree from a regionally accredited college or university with at least 6 credit hours in child development or early childhood education, plus 1 year of supervised child care experience in a licensed center or comparable setting
• Child Development Associate (CDA) credential (which itself requires practicum and coursework), plus 1 year experience in a licensed center
• Associate’s degree in child development or a closely related area, plus 1 year of supervised child care experience
• 1 year of director or licensed-center staff experience plus 12 credit hours in child care, child development, or early childhood education

The director qualifications are a frequent enrollment-blocker for owner-operators who do not personally meet the standards. Either the owner needs the credential, or the owner must hire a qualified director and pay them. CDA scholarships are available through Louisiana Pathways at Northwestern State University (Natchitoches) and the LSU Early Childhood Ancillary Certificate program.

The Quality Start 5-Star Rating System

Louisiana operates a 1-to-5 star Quality Start Child Care Rating System for Type III early learning centers, administered through Louisiana Pathways at NSU and codified at La. Admin. Code Title 67, § III-5119. Higher star ratings carry direct financial value:

• Higher Quality Start ratings command higher CCAP reimbursement rates – 4-star and 5-star centers earn substantially more per CCAP child than 1-star or 2-star centers.
• The Louisiana School Readiness Tax Credit (SRTC) is a refundable state income tax credit available to families using star-rated Type III centers, and the credit amount scales with the star rating – 5-star centers generate the largest credit for parents, which is a real enrollment differentiator.
• Star-rated centers qualify for additional Pathways scholarships for staff, plus the Refundable Tax Credit for Eligible Child Care Providers (also tied to star rating).

Quality Start ratings consider staff qualifications (Pathways records), environment ratings (ECERS-3 and ITERS-3 observations), curriculum, family engagement, and administrative practices. Earning 4 or 5 stars typically takes 12-24 months of intentional quality work after initial Type III licensure.

Child Care Assistance Program (CCAP) and Subsidy Economics

The Child Care Assistance Program is Louisiana’s implementation of the federal Child Care and Development Fund (CCDF). CCAP subsidizes child care for low-income working families and parents in education or training programs. Eligibility is generally tied to family income at or below 85% of state median income (the federal CCDBG ceiling).

For a Type III center, signing a CCAP provider agreement opens up a substantial market segment – particularly in Orleans, East Baton Rouge, Caddo, and Calcasieu parishes where median family income is lower and demand for subsidized care is high. CCAP reimbursement rates are set by region, age group, and Quality Start star rating. The reimbursement is paid directly to the provider, and parents may owe a small co-payment based on income.

The trade-off: CCAP reimbursement rates have historically been below private-pay rates for the same age group. Centers that depend heavily on CCAP need either (a) high enrollment volume to make the per-child margin work, or (b) a 4-star or 5-star Quality Start rating to access higher reimbursement tiers, or (c) a parish or local supplement on top of state CCAP rates.

The School Readiness Tax Credit: Why Type III Matters to Families

Louisiana’s School Readiness Tax Credit (SRTC) is administered by the Louisiana Department of Revenue and is one of the most generous early-childhood tax credits in the country. The credit is layered on top of the federal Child and Dependent Care Credit and is refundable for low-income families. The amount depends on:

• Family income (lower-income families get larger credits)
• The Quality Start star rating of the child’s center (only Type III star-rated centers qualify)
• Number of qualifying children

For a low-income family with two children at a 5-star Type III center, the SRTC can reach into the thousands of dollars per year. This is real money to families and a real enrollment lever for centers – if your competitor is unrated and your center is 4-star or 5-star, the SRTC differential can offset a higher tuition rate.

Where the Demand Is by Region

New Orleans / Orleans Parish: ~390K population, dense urban market with historically underserved infant and toddler care. Charter school + early childhood collaboration through Agenda for Children and the New Orleans Early Education Network. Hospitality industry workforce drives early-morning and weekend demand that traditional centers do not meet.

Jefferson Parish (Metairie, Kenner): ~440K population, NOLA suburb, more single-family-home demand profile, strong demand for full-day care from petrochemical and port industry workers.

East Baton Rouge / Baton Rouge: State capital, LSU, Southern University, plus ExxonMobil and Dow Chemical – strong employer-anchored demand. EBR Public Schools partner with several Type III centers for shared pre-K seats.

Lafayette / Acadiana: Oil and gas service company concentration plus Lafayette General/Ochsner; Lafayette Consolidated Government simplifies local zoning.

Lake Charles / Calcasieu Parish: LNG export buildout (Cheniere Sabine Pass, Venture Global Calcasieu Pass) is bringing thousands of construction and operations workers to the area – many with young children. Hurricane recovery still shapes facility availability.

Shreveport-Bossier (Caddo + Bossier): Barksdale AFB family demand (military families have CCAP-equivalent military fee assistance), plus casino-industry shift workers.

Cost to Start a Daycare in Louisiana

Item	Small Center (24 children)	Mid-Size Center (60 children)
LLC + Initial Report	$100	$100
Facility lease deposit + first month (urban)	$5,000-$15,000	$10,000-$30,000
Build-out, age-appropriate restrooms, fenced playground	$15,000-$50,000	$50,000-$200,000
Furniture, cribs, age-appropriate equipment	$5,000-$15,000	$15,000-$45,000
Fire Marshal plan review + inspection fees	$300-$1,500	$500-$3,000
Sanitation inspection (LDH)	Free or nominal	Free or nominal
CCCBC background checks (per staff)	$300-$700 (5-10 staff)	$1,000-$2,000 (15-25 staff)
$1M general liability + sexual abuse rider (annual)	$1,500-$3,500	$3,000-$7,000
Workers’ Comp (NCCI 9059)	$2,000-$4,500	$6,000-$15,000
Initial supplies, food, formula, learning materials	$3,000-$7,000	$8,000-$18,000
Director CDA or degree (if hiring)	$0-$2,000 (Pathways scholarship)	$0-$5,000 (incl. multiple staff)
Marketing (web, GBP, parish enrollment fairs)	$1,000-$3,000	$3,000-$8,000
Working capital (3 months payroll cushion)	$15,000-$30,000	$45,000-$120,000
Estimated Year 1 Total	$48,200-$132,200	$141,600-$453,100

The math is highly variable based on whether you lease, buy, or rehab a facility, and whether the location is urban (NOLA, Baton Rouge) or smaller-market. A center serving CCAP-funded families needs higher enrollment volume to support the lower per-child reimbursement rate; a 5-star Type III center in Orleans Parish can charge $1,400-$2,200 per month per infant in private-pay, which can flip the math entirely.

Related Louisiana Business Guides

← Back to all Louisiana business guides

• Starting a Cleaning Service in Louisiana (commercial cleaning for daycares)
• Starting a Food Truck in Louisiana (LDH food permits parallel)
• Starting a Landscaping Business in Louisiana

Frequently Asked Questions

Who licenses daycares in Louisiana?

The Louisiana Department of Education (LDOE) Office of Early Childhood, Division of Licensing, regulates child care under Bulletin 137 (Louisiana Administrative Code, Title 28, Part CLXI). Child care licensing was transferred from the Department of Children and Family Services (DCFS) to LDOE in 2014. Family child care homes serving 6 or fewer children are regulated separately under Bulletin 153.

What are the three Louisiana child care center license types?

Type I is for centers owned by churches or religious organizations that are tax-exempt and receive no public funds. Type II is for centers that receive no state or federal funds (or only USDA child nutrition funds). Type III is for centers that receive state or federal funds (CCAP, Head Start, public school pre-K) – and Type III is the only type eligible for the Quality Start star rating, the School Readiness Tax Credit family benefit, and CCAP subsidy enrollment.

What are the staff-to-child ratios in Louisiana?

Bulletin 137 Chapter 17 sets these ratios: 1:6 for non-walkers/under 12 months (max group 12); 1:8 for toddlers 12-23 months (max 16); 1:12 for two-year-olds (max 24); 1:14 for three-year-olds (max 28); 1:16 for four-year-olds (max 32); 1:20 for five-year-olds (max 40); 1:25 for school-age 6+ (max 50). Infant ratios are stricter than many states; school-age ratios are looser.

Do I need a background check to work in a Louisiana daycare?

Yes. Every staff member, owner, volunteer with unsupervised access, and adult household member at a family child care home must hold a current Child Care Criminal Background Check (CCCBC) determination of eligibility issued by the LDOE Background Check Unit under Bulletin 137 Chapter 18. The CCCBC includes Louisiana State Police, FBI fingerprint, Louisiana Sex Offender registry, the State Central Registry for child abuse and neglect, and equivalent registries from any state the person has resided in the past 5 years.

What qualifications does a Louisiana daycare director need?

Bulletin 137 accepts four pathways: a bachelor’s degree with 6 credit hours in child development/ECE plus 1 year supervised experience; a CDA credential plus 1 year experience; an associate’s degree in child development plus 1 year experience; or 1 year of director/staff experience plus 12 credit hours in CD/ECE. CDA scholarships are available through Louisiana Pathways at Northwestern State University.

What is the Quality Start star rating?

Quality Start is Louisiana’s 1-to-5 star rating system for Type III centers, administered through Louisiana Pathways and codified at La. Admin. Code Title 67 § III-5119. Higher star ratings command higher CCAP reimbursement and unlock the largest School Readiness Tax Credit benefit for families. Star ratings consider staff qualifications, environment scores (ECERS-3, ITERS-3), curriculum, and family engagement.

What is the School Readiness Tax Credit?

The Louisiana School Readiness Tax Credit (SRTC) is a refundable state income tax credit available to families using star-rated Type III centers. The credit amount scales with the center’s Quality Start star rating – 5-star centers generate the largest credit for families, often into the thousands of dollars per year for low-income parents. SRTC is administered by the Louisiana Department of Revenue.

Can I open a daycare in my home in Louisiana?

Yes, Louisiana licenses Family Child Care Homes (serving 6 or fewer children) under Bulletin 153 (separate from the Bulletin 137 center regulations). The standards are lighter than for centers, but adult household members must still complete CCCBC background clearance and the home must pass safety inspections. Family child care homes can also become CCAP providers and earn star ratings under a separate framework.