How to Start a Daycare in Mississippi (2026)

Last updated: May 4, 2026

Starting a daycare in Mississippi means working with the MSDH Bureau of Child Care Facilities Licensure rather than a separate education or social services agency. The state’s ratios — 1:3 infant, 1:4 toddler, 1:10 preschool — and the 40 sq ft indoor space requirement define your center capacity before you sign a lease. Mississippi’s infant care costs average roughly $570 per month, among the most affordable in the South, making quality child care a real competitive differentiator in markets like Jackson (healthcare workers at UMMC), Gulfport-Biloxi (casino shift workers), and Tupelo (Toyota plant families). Licensing authority is grounded in Miss. Code Section 43-20 et seq. No other state agency — not MDHS, not the Department of Education — issues the facility license itself. MSDH issues it, MSDH inspects it, and MSDH can revoke it.

Mississippi Daycare Requirements at a Glance

Requirement	Agency	Cost / Standard	Notes
LLC Formation	Mississippi Secretary of State	$50 online	Annual report free, due April 15
MSDH Application Fee	MSDH Child Care Licensure	$130 (non-refundable)	Paid at submission; no refund if denied
Annual License Fee (12 or fewer children)	MSDH	$97.50/year	Capacity-based fee; paid with application
Annual License Fee (13-30 children)	MSDH	$195/year	Capacity-based fee
Annual License Fee (31-50 children)	MSDH	$260/year	Capacity-based fee
Annual License Fee (51-100 children)	MSDH	$390/year	Capacity-based fee
Annual License Fee (101-150 children)	MSDH	$455/year	Capacity-based fee
Annual License Fee (151+ children)	MSDH	$520/year	Capacity-based fee
Background Check (per staff member)	MSDH / MCIC	$50 + fingerprint fees	5-component check; required before employment
Indoor Space Standard	MSDH	40 sq ft per child minimum	Excludes bathrooms, hallways, kitchen, storage
Outdoor Space Standard	MSDH	60 sq ft per child minimum	Fenced with barrier at least 4 feet high
Infant Ratio	MSDH	1 staff : 3 infants	Miss. Code § 43-20
Toddler Ratio	MSDH	1 staff : 4 toddlers	Miss. Code § 43-20
Preschool Ratio	MSDH	1 staff : 10 preschoolers	Miss. Code § 43-20
General Liability Insurance	Private Carrier	$200,000/occurrence minimum	Demarion’s Law; abuse/molestation coverage recommended
Workers’ Comp Insurance	MWCC / Private Carrier	Varies	Required at 5+ employees
CFPM / Food Handler Credential	Accredited provider	$100-$200 per person	Required if serving food
Fire Inspection (MSDH Form 333)	Local Fire Marshal	Varies by city	Required; signed by local fire marshal

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

Step 1: Form Your Business Entity

File a Certificate of Formation with the Mississippi Secretary of State online portal at business.sos.ms.gov. The filing fee is $50 (plus a $3 online processing fee). Mississippi LLCs file a free annual report due April 15 each year — there is no fee to renew your LLC registration annually, which makes Mississippi one of the lowest-cost states for annual compliance.

Apply for a free federal Employer Identification Number (EIN) through IRS.gov. You will need the EIN to open a business bank account, hire employees, and register for state tax accounts.

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Step 2: Secure Zoning Approval and a Pre-Application MSDH Inspection

Before signing any lease or purchasing a building, complete two prerequisites that Mississippi requires before accepting your license application:

Local Zoning Approval

Mississippi sets no statewide zoning rules for childcare. Zoning is determined by the city or county in which your facility will operate. Contact the planning and zoning office in your municipality before committing to any space. Ask specifically whether childcare in your proposed zone requires a special or conditional use permit. The written zoning approval must be submitted with your MSDH application.

Jackson (Hinds County): Contact Jackson Development Services or Hinds County Planning for zone determination
Gulfport / Biloxi (Harrison County): Harrison County has its own zoning code separate from the City of Gulfport
Hattiesburg (Forrest County): Contact the City of Hattiesburg Planning Division
Tupelo (Lee County): Contact City of Tupelo Community Development
Southaven (DeSoto County): Fastest-growing county in Mississippi; zoning review required

MSDH Pre-Application Building Inspection

MSDH strongly urges operators to request a pre-application inspection before signing any lease or purchase agreement. Application fees are non-refundable, and many buildings fail to meet childcare facility requirements. A pre-application inspection is free and can save you from paying the $130 application fee on a facility that cannot be licensed.

Contact MSDH Child Care Licensure at (601) 364-2827 to schedule a pre-application inspection. Website: msdh.ms.gov. Complaint hotline: 1-866-489-8734.

Step 3: Complete Background Checks for All Staff

Every operator, employee, and prospective employee must complete a five-component background check before working with children at a Mississippi licensed childcare facility. There are no exceptions and no waivers.

Component	Database Searched
FBI national criminal history check	National fingerprint database
Mississippi State criminal history check	Mississippi Criminal Information Center (MCIC) fingerprint records
Mississippi Child Abuse Central Registry	Abuse and neglect substantiation history
NCIC National Sex Offender Registry (NSOR)	National sex offender records
Mississippi State Sex Offender Registry	Mississippi sex offender records

Fees: MSDH charges a $50 processing fee per applicant. State and federal fingerprint processing fees are billed separately — budget substantially more than $50 per employee in total. All checks are submitted through the MSDH background check portal at ms.gov/msdh/background_check.

No person with a disqualifying criminal conviction or substantiated abuse or neglect finding may work at a licensed Mississippi childcare facility.

Step 4: Meet Director Qualifications and Complete Pre-Licensure Training

Director Minimum Requirements

The facility director must be at least 21 years old and satisfy one of five MSDH qualification pathways:

Pathway	Requirements
1	Bachelor’s degree in early childhood education, child development, elementary education, or closely related field
2	Two-year associate degree in child development technology requiring a minimum of 480 supervised practical hours in a college-operated lab
3	Two-year associate degree in child development, plus 2 years of paid experience in a licensed childcare facility
4	Two years of paid caregiver experience in a licensed facility, plus ONE of: (a) CDA credential from CECPR, (b) Mississippi MDHS Child Care Director Credential, or (c) 24 semester hours (grade C or better) in early childhood education from an accredited college
5	Director certified by the state licensing agency before January 1, 2000 (grandfathered status)

Required Pre-Licensure Training

Before MSDH will issue a license, the designated director must complete all three of the following training components:

Child care regulations training
Director orientation training
Playground safety training

Ongoing Annual Training — All Staff

After opening, all staff (including the director) must complete 15 clock hours of approved childcare training per year. Valid content areas include child development, guidance and discipline, nutrition, health and safety, program planning, and family and community partnerships. MSDH maintains an approved training provider list.

Step 5: Confirm Staff Ratios and Facility Space Standards

Mississippi’s staff-to-child ratios and physical space requirements are set by MSDH under Miss. Code Section 43-20 and define your licensed capacity. These numbers matter before you sign a lease: they determine how many children you can serve in a given space and how many staff members you must employ at every moment of operation.

Staff-to-Child Ratios

Age Group	Maximum Ratio
Infants	1 staff to 3 children (1:3)
Toddlers	1 staff to 4 children (1:4)
Preschool-age children	1 staff to 10 children (1:10)

In mixed-age groups, the ratio for the youngest child present applies to the entire group. A group that includes one infant requires the 1:3 ratio for every child in that group, even if the others are preschool-age.

Physical Space Standards

Indoor space: Minimum 40 square feet per child, measured as usable floor space. Bathrooms, hallways, kitchen areas, and storage do not count toward the 40 sq ft standard.
Outdoor space: Minimum 60 square feet per child in the licensed outdoor play area. Must be enclosed by a fence or solid barrier at least 4 feet high. Must be well-drained.
All primary child activity areas must be on the ground floor
Two remote exits required, each opening outward, neither passing through a kitchen
One toilet and one lavatory per every 15 children
All diaper-changing areas require a lavatory with hot and cold running water directly accessible

Practical implication: A center licensed for 30 children needs at least 1,200 square feet of usable indoor activity space (30 x 40 sq ft). If you plan for 30 children across infant and toddler rooms, you need more floor space per room than a preschool-only program because you are adding more rooms to meet ratio requirements with fewer children per staff member.

Step 6: Submit the MSDH License Application

Apply online through the MSDH portal at msdh.ms.gov.

Fees paid at submission:

$130 non-refundable application fee
Capacity-based annual license fee (see table in the requirements section above)

Late renewal penalty: $25 if renewal is submitted fewer than 30 days before expiration. Reinstatement fee: $260 if the license lapses entirely.

Required documentation to submit with application:

Director qualification verification (diplomas, transcripts, or credential documents matching one of the five pathways)
Criminal history and immunization forms for all employees
Completed MSDH Fire Inspection Form 333, signed by the local fire marshal
Facility floor plan drawn to scale, showing room dimensions and designated use
Pre-licensure training completion certificates (regulations training, director orientation, playground safety)
Zoning approval documentation from the local government in writing

Allow up to 90 days or longer from application submission before receiving a licensing decision. The first license issued is a Temporary License valid for 6 months. Full compliance during that probationary period converts it to a Regular License valid for one year, renewed annually. MSDH conducts a minimum of two unannounced inspections per year at all licensed facilities.

Step 7: Set Up Food Service Compliance

If your daycare serves any food or beverages to children — including snacks — you must comply with MSDH nutritional standards and county-level food service permitting requirements.

At least one staff member must hold a current Certified Food Protection Manager (CFPM) credential from a nationally accredited program (such as ServSafe) or an equivalent state-approved certification
Contact your county health department to obtain a food service establishment permit
MSDH requires facilities to maintain menus and feeding records for infants and toddlers
Kitchen requirements: 90 to 300 square feet, with a three-compartment sink and a separate handwashing lavatory with hot and cold running water
Buildings constructed before 1965 require lead testing before a license will be issued

Mississippi Head Start programs operate through licensed child care centers in many communities. Partnering with your local Community Services Block Grant agency or Head Start grantee can create an additional revenue stream without adding overhead — Head Start slots can fill your licensed capacity during morning hours while private-pay families occupy afternoon slots.

Step 8: Get Business Insurance

General Liability Insurance (Demarion’s Law)

Mississippi’s Demarion’s Law requires all licensed childcare facilities to carry a minimum of $200,000 per occurrence in general liability insurance. Standard GL policies often exclude abuse and molestation allegations — the most common claim type in childcare. Request a childcare-specific policy that explicitly includes abuse and molestation coverage. Recommended coverage: $1 million to $2 million per occurrence.

Estimated annual premium: $2,000 to $5,000 depending on enrollment size, prior claims history, and coverage limits

Workers’ Compensation Insurance

Required when you employ 5 or more employees in Mississippi. Childcare workers face injury risks from lifting children, slip and fall incidents, and exposure to communicable illness. Workers’ comp is regulated by the Mississippi Workers’ Compensation Commission (MWCC) at mwcc.ms.gov. NCCI workers’ comp code 9059 applies to child daycare services.

Mississippi has no state OSHA plan — federal OSHA jurisdiction applies statewide. Federal OSHA standards for general industry govern workplace safety in childcare settings.

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MS Child Care Quality Step System (CCQS): Mississippi’s QRIS

The MS Child Care Quality Step System (CCQS) is Mississippi’s tiered quality rating and improvement system for licensed childcare facilities. Participation is voluntary at the baseline but increasingly important for competitive positioning and subsidy contract eligibility.

The CCQS rates facilities on multiple quality dimensions above the minimum MSDH license standard. Facilities that earn higher CCQS step ratings can:

Receive quality improvement bonuses and incentive payments
Strengthen their application to participate in the Mississippi Child Care Payment Program (MCCPP)
Market a verified quality distinction that private-pay families in Jackson, Tupelo, and Gulf Coast markets increasingly seek
Access technical assistance and coaching from CCQS program staff

Contact the Mississippi Child Care Resource and Referral Network for CCQS enrollment information. MSDH oversees CCQS in coordination with MDHS.

Mississippi Child Care Payment Program (MCCPP): Accepting Subsidy Families

The Mississippi Child Care Payment Program (MCCPP) is administered by the Mississippi Department of Human Services (MDHS) and is Mississippi’s mechanism for distributing federal Child Care and Development Fund (CCDF) subsidies to eligible low-income families. Participating in MCCPP is one of the most direct ways to ensure consistent enrollment and revenue, particularly in markets with high rates of working low-income families.

Who MCCPP Serves

MCCPP assists families whose income falls within MDHS income eligibility limits and who are working, in training, or in school. Jackson (healthcare workers at UMMC and the state government campus), the Gulf Coast (casino resort shift workers at Beau Rivage, Harrah’s, Golden Nugget, and IP Casino), and Hattiesburg (University of Southern Mississippi faculty and service workers) are key MCCPP markets because shift work and variable schedules create sustained demand for licensed, subsidy-accepting centers.

How to Become an MCCPP Provider

Hold a current MSDH facility license (provisional or regular)
Apply to MDHS as an MCCPP provider through the MDHS Division of Early Childhood Care and Development
Sign a provider agreement with MDHS establishing your approved reimbursement rates
Maintain attendance records and billing through the MDHS electronic verification system

MCCPP reimbursement rates are set by MDHS and vary by child age group and geographic region. Rates for infants are higher than for preschool-age children, reflecting the 1:3 ratio requirement and higher staffing cost. Centers that hold higher CCQS step ratings may receive enhanced reimbursement under the quality payment structure.

Mississippi Daycare Market: Key Demand Drivers by Metro

Mississippi’s childcare market is shaped by its major employment clusters. Understanding where demand concentrates helps you select a location and tailor your program offerings before committing to a space.

Jackson / Hinds County

Jackson is Mississippi’s capital and largest metro. UMMC (University of Mississippi Medical Center) is the state’s largest employer with more than 10,000 employees, many working non-standard hospital shifts. State government offices employ tens of thousands more workers concentrated downtown. Both UMMC and state agency workers need reliable licensed care, including for infants, and have household incomes that support private-pay tuition above MCCPP reimbursement rates. Jackson has lost population to suburban Rankin and Madison counties — many UMMC workers live in Brandon, Pearl, or Flowood, creating demand for suburban centers along the US-49 and I-20 corridors.

Gulfport / Biloxi (Gulf Coast — Harrison County)

The Gulf Coast casino resort economy (Beau Rivage, Harrah’s Gulf Coast, Golden Nugget, IP Casino, Scarlet Pearl, and others) employs thousands of workers on rotating 8- and 12-hour shifts, including nights and weekends. Standard Monday-to-Friday daytime childcare does not serve this workforce. Extended-hours and weekend-capable licensed centers have a structural advantage on the Gulf Coast. Keesler Air Force Base in Biloxi adds another population of families with childcare needs. Harrison County is one of the more affordable Mississippi markets for commercial real estate while serving a relatively high-income casino-resort employment base.

Hattiesburg / Forrest County

The University of Southern Mississippi (USM) creates faculty, staff, and student-family demand. Forrest General Hospital adds another healthcare employer base. Hattiesburg is a regional hub for the Pine Belt area of south Mississippi and has a stable middle-income population that can support quality private-pay infant and toddler programs.

Tupelo / Lee County

Tupelo is home to Toyota Motor Manufacturing Mississippi, which opened in 2011 and employs approximately 2,000 direct workers plus supplier chain employees. Manufacturing shift schedules at Toyota’s plant create need for early-morning and extended-hour childcare, particularly for infants and toddlers. Tupelo is also known as the furniture manufacturing capital of the South, adding another industrial employer base. The Toyota workforce and its supplier ecosystem represent a concentrated private-pay market willing to pay quality premiums.

Startup Cost Breakdown: Mississippi Daycare

Item	Estimated Cost	Notes
LLC Formation	$50	Mississippi SOS online; plus $3 online processing fee
MSDH Application Fee	$130	Non-refundable at submission
Annual License Fee (capacity-based)	$97.50 to $520/year	Based on licensed capacity at time of application
Background Checks (per staff member)	$50+ per person	MSDH fee plus state and federal fingerprint charges
MSDH Fire Inspection Form 333	Varies by city	Signed by local fire marshal; required at submission
CPR / First Aid Certification	$50 to $100 per person	At least one certified staff member required on-site at all times
Director Pre-Licensure Training	Varies	Regulations training, director orientation, playground safety; MSDH-approved providers
CFPM Food Safety Certification	$100 to $200 per person	Required if serving food; ServSafe or equivalent
Facility Lease or Build-Out	Highly variable	Do not sign before pre-application MSDH inspection
Equipment and Supplies	$5,000 to $20,000	Cribs, cots, high chairs, toys, educational materials, outdoor play equipment
General Liability Insurance (annual)	$2,000 to $5,000	Min. $200,000/occurrence (Demarion’s Law); abuse and molestation coverage recommended
Workers’ Comp Insurance	Varies	Required at 5+ employees; NCCI code 9059
Local Business Privilege License	Varies by city/county	No general state business license; local license required

Related Mississippi Business Guides

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Frequently Asked Questions

Who licenses daycares in Mississippi?

The Mississippi State Department of Health (MSDH), Bureau of Child Care Facilities Licensure, licenses all childcare facilities in Mississippi under Miss. Code Section 43-20 et seq. MSDH is the sole licensing authority — not the Department of Education and not MDHS. Contact MSDH at (601) 364-2827 or visit msdh.ms.gov.

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

Mississippi requires a 1:3 ratio for infants, a 1:4 ratio for toddlers, and a 1:10 ratio for preschool-age children, set by MSDH under Miss. Code Section 43-20. In mixed-age groups, the ratio of the youngest child present applies to the entire group. These ratios govern how many children you can serve per staff member at any given time, so they are central to your staffing cost model before you open.

How much space does a Mississippi daycare need per child?

A minimum of 40 square feet of usable indoor space per child is required, excluding bathrooms, hallways, kitchen, and storage areas. Outdoor play space must be at least 60 square feet per child, enclosed by a fence or barrier at least 4 feet high. A center licensed for 30 children needs at least 1,200 square feet of net indoor activity space.

What background checks are required to open a daycare in Mississippi?

Mississippi requires a five-component background check for every operator and staff member before employment: (1) FBI national fingerprint check, (2) Mississippi State criminal history fingerprint check, (3) Mississippi Child Abuse Central Registry check, (4) NCIC National Sex Offender Registry check, and (5) Mississippi State Sex Offender Registry check. The MSDH processing fee is $50 per person, plus additional state and federal fingerprint charges.

What is the MS Child Care Quality Step System (CCQS)?

The MS Child Care Quality Step System (CCQS) is Mississippi’s tiered quality rating and improvement system (QRIS). Licensed facilities can earn CCQS step ratings above the minimum license standard by demonstrating higher quality in environment, staff qualifications, curriculum, and family engagement. Higher CCQS ratings improve access to quality incentive payments and strengthen eligibility for CCDF subsidy contracts through the Mississippi Child Care Payment Program (MCCPP) administered by MDHS.

What insurance is required to open a daycare in Mississippi?

Mississippi’s Demarion’s Law requires licensed childcare facilities to carry a minimum of $200,000 per occurrence in general liability insurance. Because standard GL policies often exclude abuse and molestation coverage, childcare-specific policies are strongly recommended. Workers’ compensation insurance is required when you have 5 or more employees, regulated by the Mississippi Workers’ Compensation Commission at mwcc.ms.gov.

How much does infant care cost in Mississippi?

Mississippi infant care averages approximately $570 per month, making it one of the most affordable childcare markets in the South. That relatively low prevailing market rate creates room for quality operators to command premium pricing — parents who work at UMMC, Toyota Tupelo, or Gulf Coast casino resorts will pay more for a reliably licensed, higher-rated center than for an unlicensed home program. Understanding the gap between MCCPP reimbursement rates and private-pay tuition in your specific market is essential to your financial model.

Can Mississippi Head Start programs help fill my enrollment?

Yes. Mississippi Head Start programs operate through licensed child care centers in many communities, particularly in the Jackson metro and Delta region. Partnering with your local Community Services Block Grant agency or Head Start grantee can help fill licensed capacity during morning hours with federally funded Head Start slots while private-pay or MCCPP families occupy other slots. Contact the Mississippi Head Start Association for information on local grantees that co-locate or partner with licensed centers.

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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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