How to Start a Daycare in Michigan (2026)

Last updated: February 25, 2026

Michigan has strong demand for childcare, and the state offers multiple pathways to get licensed – from a family home caring for a handful of children to a full child care center serving dozens. Licensing is handled through the Child Care Licensing Bureau (now under MiLEAP, the Michigan Department of Lifelong Education, Advancement, and Potential), with updated rules effective May 2025.

Childcare is one of the most heavily regulated industries in Michigan. Background checks, training requirements, staff-to-child ratios, and facility standards are all enforced by the state. This guide breaks down every requirement so you know exactly what to expect.

Daycare Requirements in Michigan at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	LARA Corporations Division	$50	5-10 business days
Federal EIN	IRS	Free	Immediate (online)
Child Care License	MiLEAP / Child Care Licensing Bureau	Free	2-6 months
Background Checks (all staff)	LARA / FBI	$50-$65 per person	2-4 weeks
CPR/First Aid Certification	Red Cross / AHA	$50-$100	1 day
Bloodborne Pathogens Training	Approved provider	$25-$50	2-4 hours
General Liability Insurance	Private insurer	$1,500-$3,000/year	Same day
Workers’ Compensation	Private insurer	Varies by payroll	Same day

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

Step 1: Choose Your License Type

Michigan offers three types of child care licenses based on the number of children you plan to serve:

License Type	Capacity	Location	Key Requirements
Family Child Care Home	1-6 unrelated children	Your private residence	No zoning approval needed (exempt by state law)
Group Child Care Home	7-12 unrelated children	Your private residence	Zoning approval required; at least 2 caregivers
Child Care Center	13+ children	Commercial or dedicated space	Must meet commercial building codes; director qualifications

Step 2: Form Your Business Entity

Register an LLC with LARA for $50. Apply for a free EIN from the IRS. Open a separate business bank account to keep personal and business finances separate.

Step 3: Complete Background Checks

Michigan requires comprehensive background checks for all individuals involved in childcare:

Who needs checks: The licensee, all caregivers, all adult household members (for home-based care), and any volunteers with unsupervised access to children
Type: Fingerprint-based state (Michigan State Police) and federal (FBI) background checks
Cost: Approximately $50-$65 per person
Disqualifying offenses: Felony convictions for child abuse/neglect, sexual offenses, and other serious crimes result in automatic disqualification
Central Registry check: Screening against Michigan’s child abuse and neglect central registry
Renewal: Background checks must be renewed periodically

Step 4: Complete Required Training

Before receiving your license, you and all caregivers must complete:

CPR certification (infant, child, and adult) – from American Red Cross, AHA, or equivalent
First Aid certification – current and valid
Bloodborne Pathogen training – annual requirement
Infant Safe Sleep training – required if caring for infants
Health and Safety orientation – provided by LARA/MiLEAP
Ongoing training: Minimum annual training hours required for license renewal (varies by license type)

Step 5: Prepare Your Facility

Your childcare space must meet specific physical requirements:

Indoor Space

Minimum square footage: 35 square feet per child of usable indoor activity space (excluding hallways, bathrooms, kitchens)
Age-appropriate furniture and equipment
Separate diapering/toileting areas
Safe sleep environment for infants (firm mattress, no soft bedding)
Working smoke detectors and carbon monoxide detectors on every level
Fire extinguisher on each level

Outdoor Space

Fenced outdoor play area required
Age-appropriate playground equipment
Adequate shade and safe surfacing under equipment

Fire Inspection

Fire inspection required for group homes and centers
Family homes must meet fire safety requirements in the licensing rules

Step 6: Apply for Your Child Care License

Submit your application to the Child Care Licensing Bureau through MiLEAP:

Application fee: Free (Michigan does not charge a licensing fee for child care)
Processing timeline: 2-6 months from application to license issuance
A licensing consultant will be assigned to review your application
On-site inspection of your facility will be scheduled
All background checks and training must be completed before the license is issued
License renewal: Every 2 years for family and group homes; every 3 years for centers

Step 7: Get Insurance and Open

Liability Insurance

General liability: $1,500-$3,000/year for childcare businesses
Professional liability (abuse & molestation coverage): Essential for childcare; often added as an endorsement
Property coverage: For equipment, furniture, and supplies

Workers’ Compensation

Required if meeting Michigan’s employee thresholds (1+ employees at 35+ hours/week for 13+ weeks, or 3+ employees at any time). Childcare centers almost always need workers’ comp coverage.

Michigan Staff-to-Child Ratios

Age Group	Ratio (Staff:Children)	Max Group Size
Infants (0-18 months)	1:4	8
Toddlers (18-30 months)	1:4	8
2.5-3 years	1:6	12
3-4 years	1:8	16
4-5 years	1:10	20
School-age (5+)	1:12	24

Family and group homes: Overall ratio of 1:6, with no more than 4 children under 30 months and no more than 2 under 18 months per caregiver.

Cost to Start a Daycare in Michigan

Item	Cost	Notes
Michigan LLC formation	$50	Annual statement $25/year
Federal EIN	Free	Apply online at IRS.gov
Child care license	Free	No state licensing fee
Background checks (per person)	$50-$65	Required for all caregivers and household members
CPR/First Aid certification	$50-$100	Per person; renewal every 2 years
Bloodborne pathogen training	$25-$50	Annual requirement
Fire inspection (group home/center)	$50-$200	Varies by local fire department
Liability insurance	$1,500-$3,000/year	Including abuse & molestation coverage
Furniture and equipment	$2,000-$10,000	Cribs, tables, chairs, play equipment
Safety upgrades	$500-$2,000	Fencing, gates, outlet covers, smoke/CO detectors
Supplies and curriculum	$500-$2,000	Art supplies, books, toys, educational materials

Estimated total startup cost: $3,000-$5,000 (family home) to $15,000-$50,000+ (child care center)

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Frequently Asked Questions

How much does it cost to get a daycare license in Michigan?

Michigan does not charge a fee for child care licenses. The license itself is free. Your main costs are background checks ($50-$65 per person), training certifications ($75-$150 per person for CPR/First Aid/Bloodborne Pathogens), liability insurance ($1,500-$3,000/year), and facility setup.

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

Ratios depend on age: 1:4 for infants and toddlers (under 30 months), 1:6 for ages 2.5-3, 1:8 for ages 3-4, 1:10 for ages 4-5, and 1:12 for school-age children. Family and group homes must maintain an overall 1:6 ratio with additional limits on the number of infants per caregiver.

Can I run a daycare out of my home in Michigan?

Yes. Michigan offers family child care home licenses (1-6 children) and group child care home licenses (7-12 children) for home-based operations. Family homes are exempt from local zoning restrictions by state law. Group homes require zoning approval from your local municipality.

What background checks are required for Michigan daycare?

All caregivers and adult household members must pass fingerprint-based background checks through Michigan State Police and the FBI, plus a check against Michigan’s child abuse/neglect central registry. Cost is approximately $50-$65 per person. Felony convictions for child abuse, sexual offenses, and other serious crimes result in automatic disqualification.

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

The licensing process typically takes 2 to 6 months from application submission to license issuance. Timeline depends on how quickly you complete background checks, training, facility preparation, and the scheduling of your on-site inspection.

What training do I need to open a daycare in Michigan?

Before receiving your license, you need: CPR certification (infant, child, and adult), First Aid certification, Bloodborne Pathogen training, Infant Safe Sleep training (if caring for infants), and Health and Safety orientation from MiLEAP. Ongoing annual training hours are also required to maintain your license.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

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