How to Start a Daycare in Maryland (2026)

Last updated: February 25, 2026

Starting a daycare in Maryland means working through one of the more thorough licensing processes in the country. The state’s Office of Child Care (OCC) under the Maryland State Department of Education (MSDE) oversees all child care licensing, and the application fee is free – but you’ll need to complete mandatory orientation sessions, pass an 8-component background check, meet specific training requirements, and pass facility inspections before caring for your first child.

This guide covers every requirement, cost, and step to legally start and operate a daycare in Maryland, whether you’re opening a family child care home or a full child care center.

Daycare Requirements in Maryland at a Glance

Requirement	Agency	Cost	Timeline
OCC License – Family Child Care Home (up to 8 children)	MSDE Office of Child Care	Free	3-6 months
OCC License – Large Family Child Care Home (9-12 children)	MSDE Office of Child Care	Free	3-6 months
OCC License – Child Care Center (no maximum)	MSDE Office of Child Care	Free	4-8 months
LLC Formation (Articles of Organization)	MD SDAT	$100 (mail) / $150 (online)	7-10 business days (mail) or immediate (online)
Federal EIN	IRS	Free	Immediate (online)
8-Component Background Check	MSDE / CJIS	~$53/person	2-6 weeks
Pre-Service Training (Family Home)	OCC-approved provider	Varies	24 hours of coursework
Pre-Service Training (Center Teacher)	OCC-approved provider	Varies	90 hours of coursework
CPR / First Aid Certification	Certified training provider	~$50-$75/person	1 day
Medication Administration Training (MAT)	OCC-approved provider	~$60-$65/person	6 hours
General Liability Insurance	Commercial insurer	$1,000-$6,000+/year	Same day
Fire Inspection	State Fire Marshal / Local Fire Dept.	Varies	1-4 weeks
Workers’ Comp Insurance (1+ employees)	Commercial insurer	~$0.50-$2.00 per $100 payroll	Same day
SDAT Annual Report	MD SDAT	$300/year	Due by April 15 annually

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

Step 1: Choose Your Daycare Type

Maryland’s Office of Child Care recognizes three categories of licensed child care operations, each with different requirements and capacity limits:

• Family Child Care Home: Cares for up to 8 children in the provider’s own residence. This is the most common entry point for new daycare operators and has the lowest startup costs.
• Large Family Child Care Home: Cares for 9-12 children in a residence. Requires an additional assistant and more space than a standard family home.
• Child Care Center: Operates in a commercial or institutional setting with no maximum capacity (limited only by your space and staffing). Requires significantly more staff, training, and capital investment.

All three license types are issued at no cost by the OCC – Maryland does not charge a licensing fee. However, background checks, training, insurance, and facility preparation represent your real startup expenses. Licenses are valid for 2 years and must be renewed.

Step 2: Form Your Maryland LLC

File your Articles of Organization with the Maryland SDAT (State Department of Assessments and Taxation). Filing costs $100 by mail or $150 online. Online filings are processed faster, often the same business day.

Apply for a free Employer Identification Number from the IRS (immediate online). You’ll need this for your business bank account, tax filings, and hiring employees.

Important: Maryland requires an annual report filing with SDAT at $300/year, due by April 15. This is one of the highest annual report fees in the country, so budget for it from the start.

Step 3: Complete Mandatory Orientation Sessions

Before you can apply for a child care license, Maryland requires you to attend mandatory orientation sessions offered by the Office of Child Care. These include both an online orientation and an in-person orientation at your regional licensing office.

The orientation sessions cover the licensing process, regulations, health and safety standards, and what to expect during inspections. You cannot submit your license application until these orientations are completed.

Step 4: Complete Background Checks

Maryland requires a comprehensive 8-component background check for all child care personnel. This is one of the most thorough screening processes in the country:

• State criminal history (CJIS)
• FBI fingerprint check
• National Sex Offender Registry
• Child Abuse and Neglect Registry
• And four additional screening components

• Who must be screened: All owners, operators, employees, substitutes, volunteers, and household members (for home-based operations)
• Cost: Approximately $53 per person
• Renewal: Required every 5 years
• Processing time: Allow 2-6 weeks for results

Schedule your fingerprinting through the MSDE fingerprinting page. Background check results must be cleared before an individual has unsupervised access to children. Do not delay this step.

Step 5: Complete Required Training

Pre-Service Training

Training requirements vary by your role and license type:

• Family child care home provider: 24 hours of pre-service training
• Child care center teacher: 90 hours of pre-service training
• Topics include child development, health and safety, nutrition, behavior guidance, and Maryland child care regulations

CPR / First Aid Certification

CPR and First Aid certification is required for all child care staff before caring for children.

• Cost: ~$50-$75 per person
• Must include pediatric CPR
• Renewal: Typically every 2 years

Medication Administration Training (MAT)

Maryland requires child care providers to complete a 6-hour Medication Administration Training course before administering any medication to children in care.

• Cost: ~$60-$65 per person
• Duration: 6 hours
• Covers safe medication storage, administration procedures, documentation, and emergency protocols

SIDS Training

All staff caring for children under age 2 must complete SIDS (Sudden Infant Death Syndrome) training. This covers safe sleep practices, proper crib setup, and SIDS risk reduction strategies.

Annual Continuing Education

After completing initial training, Maryland requires ongoing professional development:

• Directors and teachers: 12 hours annually
• Assistants: 6 hours annually

Step 6: Prepare Your Facility

Maryland has specific space and safety requirements for child care facilities. Ensure your location meets these standards before applying for your OCC license:

Space Requirements

• Indoor space: Minimum 35 square feet per child (usable space, excluding hallways, bathrooms, offices)
• Outdoor play area: Minimum 75 square feet per child
• Outdoor area must be fenced and age-appropriate

Safety and Building Requirements

• Lead paint: Buildings constructed before 1978 must comply with Maryland’s lead paint restrictions – lead paint testing and remediation may be required
• Working smoke detectors and fire extinguishers on every level
• Age-appropriate furniture and equipment
• Childproofing (outlet covers, cabinet locks, safety gates as needed)
• Safe sleep environments for infants (firm mattress, no loose bedding)
• Secure storage for cleaning supplies, medications, and hazardous materials
• Adequate heating, cooling, and ventilation

Important for older homes: If your building was constructed before 1978, budget for a lead paint inspection and potential remediation. Maryland takes lead paint compliance seriously, especially in child care settings.

Step 7: Pass Inspections

Before your OCC license is issued, your facility must pass several inspections:

• Fire inspection: Required annually for all child care operations. Contact the State Fire Marshal or your local fire department to schedule.
• Health and safety inspection: An OCC licensing specialist will inspect your facility for compliance with all child care regulations.
• Lead inspection: Required for pre-1978 buildings

Ongoing requirement: Fire inspections must be renewed annually, and the OCC conducts regular unannounced inspections throughout your license period.

Step 8: Apply for Your OCC License

Submit your license application to the MSDE Office of Child Care through your regional licensing office.

Required documentation includes:

• Completed application form
• Proof of completed orientation sessions
• Background check clearance letters for all personnel
• Training certificates (pre-service, CPR/First Aid, MAT, SIDS if applicable)
• Fire inspection approval
• Proof of liability insurance
• Floor plan of the facility
• Lead paint compliance documentation (pre-1978 buildings)

Application fee: Free. Maryland does not charge for child care license applications or renewals. The license is valid for 2 years.

Timeline: The full licensing process typically takes 3-6 months for family homes and 4-8 months for centers from orientation to license issuance. Start your background checks and training early to avoid delays.

Step 9: Get Insurance

General Liability Insurance

General liability insurance is essential for any daycare operation. Coverage protects against injuries to children, property damage, and negligence claims.

• Home-based daycare: $1,000-$3,000/year
• Center-based daycare: $2,000-$6,000+/year
• Important: Standard homeowner’s insurance does not cover business activities – you need a separate commercial policy or a specific child care endorsement

Workers’ Compensation Insurance

Maryland requires workers’ compensation insurance for any business with one or more employees. This threshold is lower than most states.

• Rate: Approximately $0.50-$2.00 per $100 of payroll for child care workers
• Trigger: Required from your first employee – no exemption for small employers
• Even part-time and temporary workers are covered

Maryland Daycare Staff-to-Child Ratios

Maryland mandates strict staff-to-child ratios based on the age of children in care. These ratios must be maintained at all times, including during outdoor play, meals, and transitions:

Age Group	Staff-to-Child Ratio
Infants (birth – 18 months)	1:3
Toddlers (18 months – 2 years)	1:3
Age 2	1:6
Ages 3 – 4	1:10
Age 5 and older	1:15

Mixed age groups: When children of different ages are in the same group, the ratio for the youngest child in the group applies. Maryland’s infant and toddler ratios (1:3) are among the strictest in the country, which means staffing costs for providers serving very young children will be higher.

Sales Tax: Child Care Is Exempt

Child care services are NOT subject to Maryland sales tax. You do not need to collect or remit sales tax on tuition, registration fees, or child care service charges. Maryland’s 6% sales tax applies to tangible goods and certain services, but child care is exempt.

Cost to Start a Daycare in Maryland

Home-Based Family Child Care (Up to 8 Children)

Item	Cost	Notes
LLC Formation (SDAT)	$100-$150	$100 mail / $150 online, one-time
Federal EIN	Free	Online at IRS.gov
OCC License	Free	No application or renewal fee
8-Component Background Check	~$53/person	All personnel + household members
Pre-Service Training (24 hours)	$100-$300	OCC-approved provider
CPR / First Aid Certification	$50-$75	Pediatric required
Medication Administration Training	$60-$65	6-hour course
General Liability Insurance	$1,000-$3,000/year	Child care endorsement required
Facility Prep (childproofing, equipment, supplies)	$500-$3,000	Varies by existing home condition
SDAT Annual Report	$300/year	Due by April 15 annually
Estimated total: $1,500-$3,500 (first year, excluding ongoing insurance)

Center-Based Child Care (20+ Children)

Item	Cost	Notes
LLC Formation + EIN	$100-$150	One-time
OCC License	Free	No fee for application or renewal
Background Checks (all staff)	$265-$530+	~$53/person, 5-10+ staff
Pre-Service Training – 90 hours (all teachers)	$500-$2,000+	Per staff member
CPR / First Aid (all staff)	$250-$750+	$50-$75/person
Medication Administration Training (all staff)	$300-$650+	$60-$65/person
General Liability Insurance	$2,000-$6,000+/year	Higher capacity = higher premiums
Workers’ Comp Insurance	Varies	~$0.50-$2.00 per $100 payroll, required at 1+ employees
Lease Deposit + Build-Out	$5,000-$30,000+	Location dependent
Furniture, Equipment & Supplies	$5,000-$20,000	Cribs, tables, play equipment, etc.
Outdoor Play Area (fencing, surfacing, equipment)	$3,000-$15,000	Must meet 75 sq ft/child
Lead Paint Inspection / Remediation	$200-$5,000+	Pre-1978 buildings only
SDAT Annual Report	$300/year	Due by April 15 annually
Marketing / Website / Signage	$500-$3,000	Professional presence
Estimated total: $5,000-$15,000+ (excluding lease and major renovations)

Related Maryland Business Guides

• How to Start a Cleaning Service in Maryland
• How to Start a Food Truck in Maryland
• How to Start an HVAC Business in Maryland
• How to Start a Hair Salon in Maryland
• How to Start a Landscaping Business in Maryland
• How to Start a Private Investigation Business in Maryland

← Back to all Maryland business guides

Frequently Asked Questions

What license do I need to open a daycare in Maryland?

You need a license from the MSDE Office of Child Care (OCC) under the Division of Early Childhood. There are three types: a Family Child Care Home license (up to 8 children), a Large Family Child Care Home license (9-12 children), or a Child Care Center license (no maximum capacity). The application fee is free, and licenses are valid for 2 years. You must complete mandatory orientation sessions before applying.

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

Maryland’s required ratios by age group are: Infants and toddlers (under 2): 1:3, age 2: 1:6, ages 3-4: 1:10, and age 5+: 1:15. For mixed age groups, the ratio for the youngest child in the group applies. Maryland’s infant ratio of 1:3 is among the strictest in the country.

How much does it cost to start a daycare in Maryland?

A home-based family child care typically costs $1,500-$3,500 to start, including LLC formation, background checks, training, and initial supplies. The license itself is free. A center-based child care facility typically costs $5,000-$15,000+ excluding lease and major renovations, due to higher staffing, training, equipment, and insurance costs.

Do I need a background check to run a daycare in Maryland?

Yes. Maryland requires a comprehensive 8-component background check including state and FBI fingerprint checks, National Sex Offender Registry, and Child Abuse and Neglect Registry clearance. Cost is approximately $53 per person. All owners, staff, substitutes, volunteers, and household members must be screened, with renewal every 5 years.

Do I need workers’ compensation for a daycare in Maryland?

Yes, from your very first employee. Maryland requires workers’ compensation insurance for any business with one or more employees – there is no small employer exemption. For child care workers, expect to pay approximately $0.50-$2.00 per $100 of payroll. This is a lower threshold than many states, so budget for it as soon as you hire any staff.

How long does it take to get a daycare license in Maryland?

The full OCC licensing process typically takes 3-6 months for family homes and 4-8 months for centers from orientation to license issuance. The timeline depends on how quickly you complete mandatory orientations, background checks, training requirements, and facility inspections. Start your background checks and pre-service training early to minimize delays.