How to Start a Daycare in New York (2026)

Last updated: April 30, 2026

Starting a daycare in New York in 2026 is happening at the most ambitious moment for child care policy in the state’s history. In January 2026, Governor Hochul and NYC Mayor Mamdani jointly announced a $1.7 billion increase in state child care funding bringing the FY27 statewide investment to $4.5 billion, the launch of free child care for two-year-olds (2-K) beginning fall 2026 with the first 2,000 seats in four NYC communities, statewide expansion of universal child care for children under 5, and a new Office of Child Care and Early Education at the state level to coordinate it all. Combined with NYC’s existing free 3-K for All and Pre-K for All (UPK) programs – which already pay licensed providers for thousands of seats per year through NYC DOE contracts – NYC daycare is one of the most heavily-subsidized small business categories in the country.

The other side of that ledger is regulatory rigor. NY’s child day care center ratios under 18 NYCRR § 418-1.8 are stricter than most states – 1:4 for infants 6 weeks to 18 months (max group size 8), 1:5 for 18-36 months (max 12), 1:7 for three-year-olds (max 18). NYC layers NYC DOHMH Article 47 child care permits on top of OCFS licenses, and any program serving NYC DOE-funded 3-K or UPK seats must clear additional contractor compliance. Background checks run through three databases (SCR + DCJS + FBI) for every adult in the program. This guide walks the OCFS process, the NYC vs upstate split, and where the revenue actually comes from in 2026.

NY Daycare Requirements at a Glance

Requirement	Agency	Cost	Timeline
NY LLC + LLC Publication Requirement	NY Department of State	$200 + $50 Certificate of Publication + $200-$2,500 newspapers	Within 120 days of formation
OCFS Family Day Care Registration (Part 417)	NY OCFS Division of Child Care Services	$25 application fee; 4-year registration term	90-180 days from orientation to issuance
OCFS Group Family Day Care Registration (Part 416)	NY OCFS	$50 application fee; 4-year registration	120-180 days
OCFS Small Day Care Center Registration (Part 418-2)	NY OCFS	$200 application + per-child capacity surcharge	120-180 days
OCFS Day Care Center License (Part 418-1)	NY OCFS	$200 application + per-child capacity surcharge; 4-year license	180-240 days typical
OCFS School-Age Child Care Registration (Part 414)	NY OCFS	$50 application fee	90-180 days
NYC DOHMH Article 47 Child Care Permit (NYC programs)	NYC DOHMH	~$300-$600/year typical (varies by capacity)	NYC programs only; layered on OCFS license
NY State Central Register (SCR) clearance	NY OCFS via FAMS	Free	Required for every adult in the program
NY DCJS fingerprint criminal history	NY Division of Criminal Justice Services	~$93 per person	Every adult: operator, employee, volunteer, residence household member 18+
FBI fingerprint check	FBI Criminal Justice Information Services	~$24 per person	Same population as DCJS
Health and Safety Training	OCFS-approved provider	$0-$300 typical (many free options)	15 hrs pre-service + 30 hrs every 2 years (CCDBG)
QUALITYstarsNY enrollment (optional but recommended)	QUALITYstarsNY	Free; opens enhanced subsidy + Pre-K rates at higher star levels	Voluntary; 1-5 star scale across 4 standards categories
NY Workers’ Comp + DBL/PFL	NYSIF or private NY-licensed carrier	WC class code 8869 (typically 0.5-1.5% of payroll)	Required at 1+ employee under WCL § 2/§ 3
General Liability + Abuse/Molestation	Commercial insurer	$800-$3,500/year	Required by most subsidy contracts and lenders

How to Start a Daycare in New York (Step by Step)

Step 1: Form Your Entity and Choose Your Modality

Form a NY LLC for $200 plus the LLC Publication Requirement (LLC Law § 206) – publication runs $1,500-$2,500 in NYC and $200-$800 upstate; the Certificate of Publication is $50. Family Day Care providers operating informally in their own home sometimes operate as sole proprietors, but Group Family, Small Day Care Center, and Day Care Center operators nearly always benefit from LLC liability protection (especially given NY’s strict abuse/molestation litigation environment).

OCFS regulates four child care modalities under 18 NYCRR Parts 413-418, plus a fifth modality for school-age care:

• Family Day Care (FDC) – up to 6 children in the operator’s residence (Part 417, registration). Operator’s own children under school-age count toward capacity. The lowest-barrier option for entry, but capacity caps the revenue.
• Group Family Day Care (GFDC) – 7-12 children in a residence with an approved assistant (Part 416, registration). Plus up to 4 additional school-age children. The classic “expansion” path from FDC.
• Small Day Care Center (SDCC) – 3-6 children at a non-residential site (Part 418-2, registration). Useful for boutique, niche, or workplace-adjacent programs.
• Day Care Center (DCC) – 7+ children at a non-residential site (Part 418-1, license). The traditional center-based model. Capacity is set by the inspected facility, not the regulation.
• School-Age Child Care (SACC) – school-age only programs (Part 414, registration). Before/after school and summer camps that operate year-round.

NYC’s Article 47 (10 NYCRR equivalent) layers an additional NYC DOHMH child care permit on top of the OCFS license for programs operating in the five boroughs. The OCFS license is required first; the NYC permit is required to operate.

Step 2: Complete OCFS Orientation and Submit Your Facility Application Through FAMS

Begin at OCFS Facility Application and Management System (FAMS) – ocfs.ny.gov/programs/childcare/providers/fams.php. The FAMS portal handles applications, background check submissions, and inspection scheduling for all OCFS-regulated child care programs.

Required pre-application steps:

1. Pre-application orientation – mandatory in-person or virtual session through your OCFS regional office. Covers regulations, application requirements, common compliance issues.
2. Facility Application submission – includes program description, capacity, ages served, hours, staffing plan, fee structure, sample policies, and floor plan.
3. Background check packet for the operator and all assistants/employees
4. Health & Safety training pre-service hours – 15 hours of CCDBG-aligned topics: prevention of SIDS, shaken baby syndrome, child abuse and maltreatment, food and allergic reactions, transportation safety, infectious disease, building/physical premises safety, emergency preparedness, hazardous materials, medication administration. Plus 30 hours every 2 years thereafter.

Step 3: Complete Background Checks Through SCR + DCJS + FBI

NY’s three-layer background check applies to every adult who will have unsupervised contact with children, every household member 18 or older in a residence-based program, and every program employee or regular volunteer. The three databases:

• NY State Central Register (SCR) of Child Abuse and Maltreatment – free, processed through OCFS/FAMS. Identifies “indicated” reports of child abuse or neglect against the applicant.
• NY DCJS fingerprint-based criminal history – ~$93/person, fingerprints captured at IdentoGO sites or approved fingerprint vendors. Returns NY State criminal record.
• FBI fingerprint check – ~$24/person, processed simultaneously with DCJS. Returns nationwide federal criminal record.

NY also checks the Sex Offender Registry and the Child Care Licensee Database (other state child care actions). Disqualifying offenses include felony convictions in specific categories (violent felonies, child abuse, drug trafficking) and certain misdemeanors with a presumption against approval. Some offenses are subject to a Safety Assessment that may permit clearance with mitigation.

Important NYC-specific consideration: if you contract with NYC DOE for 3-K or UPK seats, NYC DOE imposes a separate fingerprinting layer through the Personnel Eligibility Tracking System (PETS). PETS is a NYC DOE database and its requirements run parallel to OCFS, not as a substitute.

Step 4: Meet the OCFS Ratio and Group Size Requirements

NY’s day care center ratios under 18 NYCRR § 418-1.8 are among the strictest in the United States and drive your facility size and staffing model:

Age Group	Staff:Child Ratio	Max Group Size
Under 6 weeks	1:3	6
6 weeks – 18 months (Infant)	1:4	8
18 months – 36 months (Toddler)	1:5	12
3 years (Preschool)	1:7	18
4 years (Preschool)	1:8	21
5 years (Preschool)	1:9	24
School-Age (through 9)	1:10	20
School-Age (10-12)	1:15	30

NYC has tighter rules in some categories: NYC defines “toddler” as 12-24 months at 1:5 with max group size 10 (vs state’s 18-36 months at 1:5 max 12). Mixed-age groupings are calculated using the youngest child’s ratio. NY’s ratios drive room-size economics: an infant room serving 8 children needs 2 staff continuously plus break coverage; a preschool room of 18 three-year-olds needs ~3 staff plus the lead teacher.

Family Day Care (Part 417) and Group Family Day Care (Part 416) have their own ratio rules. FDC: maximum 6 children including provider’s own children under school-age (with sublimits on infants – typically 2 max). GFDC: 7-12 children with assistant, plus up to 4 additional school-age, with sublimits on infants.

Step 5: Pass Facility Inspection

OCFS conducts a pre-opening inspection across:

• Fire safety – smoke and CO detectors on every floor and outside sleeping areas, fire extinguishers (Class ABC, current tag), egress paths, posted evacuation plans, monthly fire drills documented. NYC programs need FDNY clearance and inspection.
• Sanitation – food prep area separate from diapering, hand sinks adjacent to diapering tables and toilets, no carpeted bathrooms, kitchen Article 81 (NYC) or local code compliance.
• Playspace – 40 sq ft indoor and 75 sq ft outdoor per child for centers (specific sizing for FDC/GFDC). Outdoor space can be on the same site or within walking distance with safe travel route.
• Security – secure entry, visitor management, drop-off/pickup verification, secure perimeter
• Lead paint – NY requires lead clearance for any pre-1978 building; in NYC, NYC HPD inspects under Local Law 1 of 2004

Common fail points: outdoor space inadequate, lead testing not completed, fire egress not compliant in residential spaces (especially second-floor GFDC programs), and food prep area sharing space with diapering.

Step 6: Connect to NY Revenue Programs (Where Real Daycare Money Comes From in 2026)

NYC’s $4.5B universal child care expansion (2026)

The Hochul-Mamdani January 2026 announcement is the largest single child care policy expansion in NY history. Key elements relevant to new providers:

• NYC 2-K (free care for two-year-olds) – launching fall 2026 with 2,000 seats in 4 NYC communities, expanding citywide universally over 4 years. Contracts will run through NYC DOE/NYCEEC structure similar to existing 3-K/UPK.
• Expanded NYC 3-K for All – the existing 3-K program is being strengthened to true universal access citywide.
• Statewide universal child care for children under 5 – $4.5B FY27 statewide investment; pilot partnerships with Monroe County and other counties already announced.
• NY State Office of Child Care and Early Education – new state-level agency to coordinate the expansion (announced January 2026).

For new providers: the practical impact is more demand for quality licensed seats and increased funding flowing through CCAP, NYC DOE NYCEEC contracts, and (potentially) direct OCFS contracts. Expect contract competition to intensify; QUALITYstarsNY ratings become a differentiator.

NYC DOE NYCEEC contracts (3-K, UPK, and incoming 2-K)

The NYC Department of Education contracts directly with private licensed centers (NYCEECs – NYC Early Education Centers) to deliver free 3-K and Pre-K seats to NYC families. To become a NYCEEC contractor:

1. Hold a current OCFS Day Care Center license (Part 418-1)
2. Hold a current NYC DOHMH Article 47 child care permit
3. Respond to NYC DOE solicitations (typically issued annually for new program seats)
4. Complete contractor compliance: PETS background checks, contract financial review, facility verification
5. Adopt approved curriculum and meet NYC DOE quality standards

NYCEEC contract rates are not publicly listed at uniform amounts – they vary by program structure, location, hours, and capacity. Multi-year contracts are typical. Many small NYCEECs report 60-85% of their revenue coming from DOE contracts, with private-pay supplementing.

NY Pre-K Universal (UPK) statewide

Outside NYC, the NY Universal Pre-K (UPK) program is administered by NYSED (NY State Education Department) through local school districts. Districts contract with community-based organizations (CBOs) – including licensed Day Care Centers – to deliver UPK seats. The funding mechanism varies by district; reach out to your local school district’s UPK coordinator.

CCAP (Child Care Assistance Program) subsidy

NY’s CCAP program subsidizes child care for low-income families. Each county runs its own CCAP local district (NYC’s HRA administers CCAP for the five boroughs). To accept CCAP-subsidized children, register as a CCAP provider – the form is straightforward, and accepting CCAP opens a meaningful pipeline of families. CCAP rates are set at the county level and are reviewed annually; many counties pay at or near the 75th percentile of market rates as required by federal CCDBG rules.

QUALITYstarsNY (1-5 star QRIS)

Voluntary participation in QUALITYstarsNY rates programs on a 1-5 star scale across four categories: Learning Environment, Family Engagement, Qualifications & Experience, and Management & Leadership. Higher star ratings open enhanced reimbursement tiers in CCAP and may be required by NYC DOE 3-K/UPK/2-K contracts at certain levels. Participation is free – the Universal Quality Rating Improvement System (QRIS) framework was rebuilt and re-launched after a multi-year pause.

Step 7: Get Workers’ Comp, DBL/PFL, and the Right Insurance Stack

Required:

• Workers’ compensation at 1+ employee under WCL § 2/§ 3. Class code 8869 (Child Day Care – Professional Employees) typically runs 0.5-1.5% of payroll. Misclassifying child care assistants as 1099 contractors is heavily audited – they almost never pass the right-to-control test.
• NY DBL + PFL coverage (purchased through your WC carrier or NYSIF). PFL is funded by 0.432% employee deduction capped at $411.91/year per employee.
• General liability ($1M-$2M) – some NYC contracts require $2M occurrence / $4M aggregate.
• Abuse and molestation rider – increasingly required by NYC DOE and lenders. Stand-alone limits ($500K-$1M typical).
• Commercial property – covers the building and contents.
• Commercial auto if you transport children (field trips, summer camps).

NY Daycare Market: Where the Demand Is

NY’s daycare market in 2026 is among the most subsidy-rich and capacity-constrained in the country:

• NYC infant care: the most chronically underserved care need in NYC – infant capacity at OCFS-licensed centers is severely limited by the 1:4 ratio requirement and high cost of NYC commercial real estate. Average infant private-pay rates run $2,800-$4,500/month in Manhattan, $2,200-$3,500 in Brooklyn/Queens. Demand is well in excess of supply.
• NYC 3-K and UPK seats: heavily subsidized through DOE/NYCEEC contracts. Free to families, paid to providers via DOE. Strong pipeline of new contracts as the universal expansion rolls out.
• NYC 2-K seats (new): launching fall 2026 with 2,000 seats in 4 communities, expanding citywide. The single largest new revenue opportunity for NYC licensed centers.
• Long Island full-day care: Nassau and Suffolk – high-income suburban demand, especially around the Hampton end during school year. CCAP rates competitive.
• Hudson Valley: Westchester (especially Yonkers, White Plains, New Rochelle) – high CCAP utilization and strong private-pay; growing UPK contracts.
• Capital Region: Albany/Saratoga – state-government workforce drives stable full-day demand year-round.
• Western NY: Buffalo and Rochester – lower per-seat private-pay rates but strong subsidized demand and Pre-K pipeline. Monroe County is one of the early universal child care pilot counties announced by Hochul.
• Central NY (Syracuse area): Micron Foundry construction is driving new family migration; new center capacity is needed and being financed through NY-led economic development packages.

Cost to Start a Daycare in New York

Cost Category	Family Day Care (Home, ~6 kids)	Day Care Center (NYC, ~40 kids)
NY LLC + Publication Requirement	$0 (sole prop) or $1,000-$2,750 LLC	$1,750-$2,750
OCFS application fee	$25 (FDC) / $50 (GFDC)	$200-$500
Background checks (1-3 adults)	$117-$351	$1,170-$3,510 (10-30 staff)
Health & Safety training	$0-$300	$0-$2,500 (multi-staff)
Facility setup (lead test, fire safety, etc.)	$500-$3,000	$50,000-$300,000+ (NYC build-out)
NYC DOHMH Article 47 permit	n/a (not in NYC)	$300-$600/year
Year-1 commercial rent (NYC center)	$0 (home-based)	$80,000-$300,000+
Workers’ comp + DBL/PFL year 1	$0 if no employees	$5,000-$15,000
General liability + abuse/molestation	$800-$2,000/year	$3,500-$10,000/year
Initial supplies, curriculum, equipment	$1,500-$5,000	$25,000-$80,000
Approximate first-year minimum	$3,000-$15,000	$170,000-$700,000+

The cost gulf between Family Day Care and a NYC Day Care Center reflects the structural difference: FDC is essentially a regulated home business, while a NYC DCC is a commercial real estate plus regulated operations business. Most NYC center startups are 18-30 months from formation to first revenue – the OCFS process alone runs 180-240 days, plus build-out time and contract competition for DOE seats.

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Frequently Asked Questions

What types of daycare can I open in New York?

NY OCFS regulates four primary modalities: Family Day Care (FDC) for up to 6 children in your home (Part 417, registration); Group Family Day Care (GFDC) for 7-12 children in a residence with an assistant (Part 416, registration); Small Day Care Center (SDCC) for 3-6 children at a non-residential site (Part 418-2, registration); and Day Care Center (DCC) for 7+ children at a non-residential site (Part 418-1, license). School-Age Child Care (SACC) under Part 414 is a fifth modality for school-age-only programs. NYC adds an Article 47 permit on top of the OCFS license/registration for any program operating in the five boroughs.

What are NY’s daycare ratios?

Under 18 NYCRR § 418-1.8, NY day care center ratios are: Under 6 weeks 1:3 max 6; 6 weeks-18 months (Infant) 1:4 max 8; 18-36 months (Toddler) 1:5 max 12; 3 years 1:7 max 18; 4 years 1:8 max 21; 5 years 1:9 max 24; School-age through 9 yrs 1:10 max 20; School-age 10-12 yrs 1:15 max 30. NYC has tighter toddler rules (12-24 months at 1:5 max 10). Mixed-age groupings use the youngest child’s ratio.

How long does NY OCFS take to issue a daycare license?

FDC and GFDC registrations typically issue in 90-180 days from completion of orientation. Small Day Care Center and Day Care Center licenses run 120-240 days, with NYC programs at the longer end because of the layered Article 47 permit and FDNY inspection. Background check processing alone often takes 30-60 days; facility inspection and remediation can add another 60-90 days.

What is NYC 2-K and when does it start?

NYC 2-K is free child care for two-year-olds, jointly announced by Governor Hochul and Mayor Mamdani in January 2026 as part of a $1.7B state investment expansion (total FY27 statewide child care budget: $4.5B). The first 2,000 2-K seats launch in fall 2026 in four NYC communities, with planned expansion to universal citywide access over four years. NY State also announced a new Office of Child Care and Early Education to coordinate the rollout. For licensed NYC daycare operators, this is the single largest new contract opportunity in 2026-2030.

How do I become a NYC 3-K or UPK provider?

You must (1) hold a current OCFS Day Care Center license (Part 418-1), (2) hold a current NYC DOHMH Article 47 child care permit, (3) respond to NYC DOE solicitations (issued annually for new seats), (4) complete contractor compliance including PETS background checks, contract financial review, and facility verification, and (5) adopt approved curriculum and meet NYC DOE quality standards. Most NYCEECs report 60-85% of revenue from DOE contracts, supplemented by private-pay families.

What background checks does NY require for daycare staff?

Three layers for every adult with unsupervised contact with children: (1) NY State Central Register (SCR) of Child Abuse and Maltreatment (free, through OCFS/FAMS), (2) NY DCJS fingerprint criminal history (~$93/person), and (3) FBI fingerprint check (~$24/person). Sex Offender Registry and Child Care Licensee Database are also checked. In residence-based programs, every household member 18+ must clear all three. NYC DOE adds the PETS background check on top for contracted providers.

What is QUALITYstarsNY?

QUALITYstarsNY is NY’s voluntary 1-5 star Quality Rating and Improvement System (QRIS), administered through OCFS. Rates programs across four categories: Learning Environment, Family Engagement, Qualifications & Experience, Management & Leadership. Programs receive a Provisional Rating before earning an Active Rating. Higher star ratings can unlock enhanced subsidy reimbursement tiers and may be required for certain NYC DOE 3-K/UPK contracts. Participation is free.

How do I get paid for low-income families through CCAP?

NY’s Child Care Assistance Program (CCAP) is administered by each county’s local district (NYC’s HRA covers the five boroughs). Register as a CCAP provider through your county – the application is short, and accepting CCAP opens a meaningful pipeline of subsidized families. Counties pay at the 75th percentile of market rates (CCDBG rules), with QUALITYstarsNY-rated programs eligible for enhanced reimbursement tiers. CCAP families pay a sliding-scale family share; the rest is paid directly to you by the county.