How to Start a Daycare in Minnesota (2026)

Last updated: February 25, 2026

Starting a daycare in Minnesota requires licensing through the Department of Children, Youth, and Families (DCYF), which took over childcare licensing from DHS in June 2025. Minnesota offers several license types: family child care (in-home, licensed by your county) starts at $50/year, while child care centers (licensed directly by DCYF) start at $225/year plus a $500 application fee. All staff and household members must pass NETStudy 2.0 background checks (~$29/person). Staff-to-child ratios range from 1:4 for infants to 1:15 for school-age children. A major 2026 development: all licensed providers in good standing will automatically receive a One-Star Parent Aware rating starting July 1, 2026. This guide covers every requirement from official Minnesota sources.

Daycare Requirements in Minnesota at a Glance

Requirement	Agency	Cost	Timeline
Family Child Care License	County agency / DCYF	$50/year	3-6 months
Child Care Center Application	DCYF	$500 (one-time) + $50 fire inspection	6-12 months
Center Annual License Fee	DCYF	$225-$1,500/year (by capacity)	Annual
NETStudy 2.0 Background Check	DCYF / BCA / FBI	~$29/person	2-4 weeks
Pre-Service Training	Achieve Registry	Varies	Before licensure
CPR & First Aid Certification	Approved provider	$50-$100	Before licensure
LLC Formation	Secretary of State	$155 (online)	3-5 business days
Workers’ Compensation Insurance	DLI (private carriers)	Varies by payroll	Before hiring employees

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

Step 1: Choose Your License Type

Minnesota offers several childcare license categories:

Family Child Care (In-Home)

Operated in your home, licensed by your county agency on behalf of DCYF. Annual fee: $50.

License Class	Adults	Max Children	Max Under School Age	Max Infants/Toddlers
Class A (standard)	1	10	6	3 combined (max 2 infants)
Class B1 (infant/toddler specialist)	1	5	3	3 (all may be infants)
Class C3 (group family)	2	14	10	4 combined (max 3 infants)

Child Care Centers (Non-Residential)

Operated in a commercial facility, licensed directly by DCYF. Application fee: $500 plus $50 fire inspection. Annual fee: $225-$1,500 based on capacity.

Licensed Capacity	Annual Fee
1-24 children	$225
25-49 children	$340
50-74 children	$450
75-99 children	$565
100-124 children	$675
125+ children	$900-$1,500

Step 2: Complete Background Studies (NETStudy 2.0)

All child care staff, household members age 13+ (family child care), and controlling individuals (centers) must pass background studies through NETStudy 2.0:

Background study fee: $20 per person
Fingerprinting fee: $9.10 per person (at fingerprinting site)
Total: approximately $29.10 per person
Checks criminal history through BCA (state) and FBI (federal)
Enhanced studies must be renewed every 5 years

Step 3: Complete Required Training

Family Child Care Providers

4 hours in Child Development and Learning & Behavior Guidance
6-hour in-person (or 8-hour online) Supervising for Safety course
First aid and CPR certification
SIDS/Abusive Head Trauma (AHT) training
Ongoing: 16 hours per year including annual 2-hour Active Supervision refresher

Child Care Center Staff

Director: High school diploma, 1,040 hours supervision experience, 9 quarter credits in supervision/child development
Teacher: Age 18+, meets one of nine combined credential/experience paths (e.g., HS diploma + 4,160 hours + 24 credits)
Assistant Teacher: Age 18+, meets one of nine combined requirements (e.g., HS diploma + 2,080 hours + 12 credits)
Aide: Minimum age 16 (under 18 requires direct supervision)
Ongoing: 24 hours per year for full-time staff, 12 hours for part-time

Step 4: Submit Application and Pass Inspections

Family Child Care

Complete online orientation (30 minutes, self-paced)
Receive application packet from your county licensor
Complete pre-service training and background studies
Home inspection by county licensor
County recommends licensure to DCYF
Timeline: 3-6 months minimum

Child Care Centers

Secure a facility with valid zoning for childcare
Submit application with $500 fee and $50 fire inspection fee to DCYF
Complete background studies for all controlling individuals
Pass zoning, building, fire marshal, and health department inspections
DCYF licensor review and site visit
Timeline: 6-12 months

Step 5: Form Your Business and Get Insurance

Register an LLC with the Secretary of State ($155 online, free annual renewal). Get a federal EIN from the IRS. Workers’ compensation insurance is mandatory for all employers in Minnesota – required before hiring your first employee. General liability and professional liability insurance are strongly recommended for childcare operations.

Step 6: Staff-to-Child Ratios (Centers)

Age Group	Age Range	Staff:Child Ratio	Max Group Size
Infant	6 weeks – 16 months	1:4	8
Toddler	16 – 33 months	1:7	14
Preschooler	33 months – kindergarten	1:10	20
School-age	Kindergarten+	1:15	30

Centers must have minimum 35 square feet per child of indoor space and 75 square feet per child of outdoor space (minimum 1,500 sq ft total outdoor). Water temperature must not exceed 120 degrees F. At least one sink and one toilet per 15 children.

Cost to Start a Daycare in Minnesota

Item	Cost	Notes
LLC Formation	$155	One-time (online), free annual renewal
Family Child Care License	$50/year	Through county agency
OR Child Care Center Application	$500 + $50	One-time application + fire inspection
Center Annual License (1-24 kids)	$225/year	Scales up by capacity
Background Studies (per person)	~$29	$20 study + $9.10 fingerprinting
Pre-Service Training	$100-$500	Varies by provider
CPR & First Aid Certification	$50-$100	Must stay current
Workers’ Comp Insurance	Varies by payroll	Mandatory for any employees
General Liability Insurance	$800-$2,500/year	Recommended for all providers
Facility Build-Out (center)	$10,000-$100,000+	Depends on condition and size
Equipment & Supplies	$2,000-$10,000	Cribs, toys, furniture, safety items

Estimated total startup cost:

Family child care (in-home): $3,000-$10,000
Child care center (small, 1-24): $15,000-$120,000+

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Frequently Asked Questions

What type of daycare license do I need in Minnesota?

Minnesota offers family child care (in-home, up to 14 children, $50/year, licensed through your county) and child care centers (non-residential facility, unlimited capacity, $225-$1,500/year, licensed directly by DCYF). Family child care is the most common path for starting out.

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

Family child care: 3-6 months from application to licensure. Child care centers: 6-12 months due to facility inspections, zoning, and build-out requirements. Background studies take 2-4 weeks.

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

For child care centers: 1:4 for infants (6 weeks-16 months), 1:7 for toddlers (16-33 months), 1:10 for preschoolers (33 months-kindergarten), and 1:15 for school-age children. Family child care ratios depend on the license class.

What background checks are required?

All staff, household members age 13+ (family), and controlling individuals (centers) must pass NETStudy 2.0 background studies (~$29/person), which check state (BCA) and federal (FBI) criminal records. Studies renew every 5 years.

What is Parent Aware?

Parent Aware is Minnesota’s voluntary quality rating system (1-4 stars). Starting July 1, 2026, all licensed providers in good standing will automatically receive a One-Star rating unless they opt out or already hold a higher rating. Higher ratings unlock Early Learning Scholarships funding.

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

Family child care (in-home): $3,000-$10,000 including license, training, insurance, and supplies. Child care center: $15,000-$120,000+ depending on facility size and build-out needs. LLC formation is $155 with free annual renewals.

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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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