Last updated: April 30, 2026

How to Start a Daycare in Ohio (2026)

Two structural changes have reshaped Ohio’s child care landscape in the last two years, and both matter to anyone starting a daycare today. First, Ohio’s child care licensing function moved out of ODJFS into the new Department of Children and Youth (DCY) under House Bill 33 of 2023. As of January 2, 2025, the licensing rules were renumbered from OAC Chapter 5101:2-12 to OAC Chapter 5180:2-12, and child care licensing now runs through DCY at childrenandyouth.ohio.gov rather than through ODJFS. Second, Ohio’s Step Up to Quality (SUTQ) rating system was collapsed from a five-star scale into a three-tier Bronze / Silver / Gold structure (former 1-2 stars became Bronze, 3 stars Silver, 4-5 stars Gold). If you ran a daycare during the old system, your prior rating was auto-mapped; if you are starting fresh, you enter at the entry tier and earn upward.

The other thing to know up front: Ohio’s Publicly Funded Child Care (PFCC) program is the largest single revenue source for most Ohio daycares. PFCC pays providers at the 50th percentile of the market rate (recently surveyed); reimbursement runs roughly $130-$368.35 per week per child depending on age, location, and SUTQ tier. Programs must be SUTQ-rated to participate. The Department of Children and Youth has until August 1, 2026 to cap PFCC family copays at 7% of household income, which is expected to push more families into PFCC eligibility. Plan SUTQ entry into your launch sequence rather than treating it as optional.

Daycare Requirements in Ohio at a Glance

Requirement	Agency	Cost	Timeline
Ohio LLC Articles of Organization	Ohio Secretary of State	$99 – no annual report	3-7 business days
Type A or Type B Family Child Care License	Ohio Department of Children and Youth (DCY)	No fee for license itself; capital costs vary	90-180 days for licensing inspection and approval
Licensed Child Care Center License	DCY – Office of Child Care Licensing	No license fee from state; building code costs significant	120-240 days from application through opening inspection
BCI Fingerprint Background Check	Ohio Bureau of Criminal Investigation (BCI)	~$22 for state criminal records check	2-4 weeks; required for owner, staff, and household members 18+
FBI Fingerprint Background Check	Federal Bureau of Investigation	~$24 for federal criminal records check	Submitted concurrently with BCI; required for all the above
Step Up to Quality (SUTQ) rating	DCY (formerly ODJFS)	No application fee; quality consultation costs vary	6-18 months to achieve Bronze/Silver/Gold
Pediatric First Aid + CPR + Communicable Disease + Child Abuse Recognition	Approved trainers	$80-$200 per staff person, varies by trainer	Required before starting work; renewed periodically
BWC Workers’ Compensation	Ohio Bureau of Workers’ Compensation (state monopoly)	$120 minimum deposit; daycare NCCI 9059 (lower-rated than HVAC)	Before any employee starts
Local zoning + building code	City building/zoning department + fire marshal	Permit and plan review fees vary	Often the longest single item; obtain Certificate of Occupancy before licensing inspection
Liability + Property Insurance	Commercial insurer	$1,500-$5,000+/year for centers	Required by DCY licensing rules

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

Step 1: Pick the Right License Type

Ohio’s Department of Children and Youth licenses three distinct types of child care under ORC Chapter 5104 and the renumbered OAC Chapter 5180:2-12 (centers) and 5180:2-13 (family child care). Pick one before you do anything else – the requirements diverge significantly.

License Type	Children Served	Where Operated	Notes
Type B Family Child Care Home	1-6 (not counting provider’s own)	Provider’s residence	Lowest barrier to entry; must comply with city ordinances; less extensive requirements than Type A
Type A Family Child Care Home	7-12 (including provider’s own children under 6)	Provider’s residence	Full DCY license; structurally similar to a small center
Licensed Child Care Center	13 or more	Non-residential facility	Full DCY license under OAC 5180:2-12; building code, plan review, dedicated outdoor play, full ratio rules

The vast majority of Ohio in-home providers operate as Type B (no DCY license required to be paid through PFCC if certified by their county); the next tier up is Type A; centers are the third path. Each successive tier costs more to start and requires more ongoing compliance, but each also qualifies for higher PFCC reimbursement rates.

Step 2: Form Your Ohio LLC

File Articles of Organization (Form 533A) at the Ohio Business Central portal. Filing fee: $99. Ohio is one of the few states that requires no annual report and no recurring fee for LLCs. Standard processing 3-7 business days. Get your free federal EIN at IRS.gov immediately after the LLC is approved.

Step 3: BCI + FBI Fingerprint Background Checks

Ohio child care background checks involve two layers and are mandatory before anyone is on-site with children:

• Ohio Bureau of Criminal Investigation (BCI): State criminal records check via fingerprint (~$22)
• Federal Bureau of Investigation (FBI): Federal criminal records check via fingerprint (~$24)
• Submission location: Webcheck-approved fingerprinting locations across Ohio (BCI’s online directory)
• Required for: Owner/operator, every staff member, every volunteer with regular contact with children, every household member 18 or older for in-home Type A or Type B
• Frequency: Re-check every five years; check is for record disqualifications under ORC 5104.013
• Disqualifying offenses: ORC 5104.013 lists permanently disqualifying offenses (most violent and sex offenses) and time-limited disqualifications

Step 4: Facility, Zoning, and Building Code

For Type A and Type B in-home, your residence must meet DCY safety standards (working smoke and CO detectors, safe sleep environment, secured medications and chemicals, fenced outdoor play if applicable). For licensed child care centers, the facility requirements under OAC 5180:2-12 are extensive:

• Indoor space: 35 square feet of usable space per child, exclusive of bathrooms and kitchens
• Outdoor play space: 60 square feet per child for the maximum number of children using the space at one time
• Hand-washing and diapering stations: Required in every infant and toddler room with hot and cold running water
• Safe sleep environment: Each infant has a designated crib meeting CPSC standards; no bumpers, no soft bedding, back-sleeping
• Fire suppression and egress: State Fire Marshal inspection; sprinklers required for many facility types
• Certificate of Occupancy: Issued by the local building department before DCY licensing inspection – DCY will not license a facility without a current C of O for the appropriate use group (typically Group I-4 for daycare)

City zoning is the other long pole. Most Ohio cities require a conditional use permit for a daycare in a residential or commercial zone – Columbus (Building & Zoning Services), Cleveland (Department of Building and Housing), Cincinnati (Department of Buildings & Inspections), and other municipalities each have separate processes. Apply early; zoning approval often takes 60-120 days.

Step 5: Staff-to-Child Ratios Under ORC 5104.033

Ohio statute (rather than rule) sets the maximum staff-to-child ratios and group sizes for licensed child care centers. Effective October 3, 2023:

Age Group	Staff-to-Child Ratio	Maximum Group Size
Infant under 12 months	5:1 (or 12:2 with two staff in room)	12
Young toddler 12-17 months	6:1	12
Older toddler 18-29 months	7:1	14
Older toddler 30-35 months	8:1	16
Preschool 3 years	12:1	24
Preschool 4-5 years	14:1	28
School-age 6-10 years	18:1	36
School-age 11-14 years	20:1	40

Mixed-age groups: When age groups are combined, the ratios applicable to the youngest age group apply. Napping exception: During nap time, the maximum number of children per staff member can double for toddler and preschool rooms IF specific conditions are met (including immediate access to backup staff). Infant-only group cap: The 5:1 ratio is the most restrictive in Ohio, which is one reason infant care is the most under-supplied and most expensive segment of the Ohio market.

Step 6: Required Staff Training

OAC 5180:2-12-09 and 5180:2-12-10 set the training and professional development requirements for licensed child care center staff:

• Pediatric First Aid and Infant/Child CPR: Each staff member; renew per certifying organization (typically every 2 years)
• Communicable Disease Recognition: Required for each staff member
• Child Abuse and Neglect Recognition: Required for each staff member; reportable mandatory under ORC Chapter 2151
• Annual continuing education: 24 hours per year per child care staff member, including specific topics required by DCY
• Administrator-specific training: Additional management training under OAC 5180:2-12-10 for the administrator role
• Orientation: Documented orientation before working alone with children

Step 7: Submit Your DCY License Application Through OCLQS

The Ohio Child Licensing and Quality System (OCLQS) is the DCY portal for license applications, inspection scheduling, complaint history, and SUTQ rating tracking. Access it at childrenandyouth.ohio.gov.

Required submission package typically includes:

• Completed license application with owner/operator information
• Articles of Organization (LLC) and EIN
• BCI and FBI fingerprint check results for owner, staff, and household members 18+
• Floor plan, square footage calculations, outdoor space measurements
• Certificate of Occupancy
• Written policies (staff handbook, parent handbook, child guidance, emergency, transportation, medical/medication, child abuse prevention, program statement)
• Staff records (training certificates, references, hire dates)
• Insurance certificates (general liability, property, automobile if transporting children)
• BWC certificate of coverage

Pre-licensing inspection covers facility compliance, staff records, ratios, program statement, fire and emergency safety. Plan for 90-180 days for family child care licensing, 120-240 days for centers.

Step 8: Step Up to Quality (Bronze / Silver / Gold)

Ohio’s Step Up to Quality (SUTQ) rating system was restructured in 2024-2025 from a five-star scale into three tiers:

• Bronze (former 1- and 2-star ratings) – entry-level quality designation; meets baseline standards above licensing
• Silver (former 3-star) – mid-tier; specific curriculum, assessment, and family engagement standards
• Gold (former 4- and 5-star) – top tier; nationally accredited or equivalent; highest PFCC reimbursement multiplier

Why SUTQ matters: SUTQ rating is required to participate in Publicly Funded Child Care (PFCC), the Early Childhood Education (ECE) Grant, and other state-funded programs. PFCC pays a higher per-child reimbursement at higher SUTQ tiers – a Gold-rated center receives substantially more per child than a Bronze-rated one. For most Ohio providers, PFCC enrollment is the difference between a sustainable program and operating at a loss.

How to advance: SUTQ ratings are validated through observed practice (CLASS, ECERS-3, or ITERS-3 environment rating scales), staff credentials, curriculum, family engagement, and continuous quality improvement plans. Local Child Care Resource and Referral (CCR&R) agencies (Action for Children in central Ohio, 4C for Children in southwest Ohio, Starting Point in northeast Ohio) provide free quality consultation.

Step 9: Publicly Funded Child Care (PFCC)

Ohio’s PFCC program is administered by DCY and run through county Job and Family Services agencies. Provider fundamentals:

• Eligibility: Initial family eligibility capped at 145% of federal poverty level; continuing eligibility up to 300% with sliding copay
• Reimbursement methodology: 50th percentile of market rate based on the most recent Ohio Market Rate Survey, adjusted by SUTQ tier and county
• Reimbursement range: Roughly $130-$368.35 per week per child for full-time center care, varying by age, location, and SUTQ tier
• Part-time category: Defined as 10-33 hours per week; under 10 hours/week reimbursed at hourly rate
• Enrollment vs. attendance: Providers paid based on enrollment, not daily attendance (recent change reducing pay volatility)
• Family copay cap: DCY required to cap copays at 7% of household income by August 1, 2026 – expected to expand the eligible family population

Most Ohio child care centers earn 30-70% of revenue through PFCC, depending on neighborhood demographics. SUTQ tier and PFCC contract together determine your effective per-child revenue. Plan early.

Ohio Daycare Market: Where the Demand Is

Columbus and the working-parent surge: Columbus has one of the country’s tightest infant care supplies. Population growth across Franklin, Delaware, and Union counties combined with Intel construction in Licking County is creating sustained employer demand for child care benefits. Many large Columbus employers (Nationwide, JPMorgan Chase, OhioHealth, Ohio State University) subsidize child care for employees, often by partnering with local centers – establishing relationships with HR benefits teams can fill enrollment in advance.

Cleveland and the healthcare workforce: Cleveland Clinic, MetroHealth, and University Hospitals together employ tens of thousands of shift workers – nurses, technicians, support staff – who work non-standard hours and need 24-hour or extended-day care. Daycares that can offer overnight, weekend, or split-shift coverage in Cuyahoga County are differentiated. Cuyahoga County also has higher PFCC participation rates than the state average.

Cincinnati and the tri-state market: Cincinnati’s metro reach into Northern Kentucky and southeast Indiana means a Cincinnati-based provider often serves families who work in Kentucky or Indiana but live in Ohio (or vice versa). PFCC eligibility is Ohio-specific; cross-state employers complicate the documentation. The Cincinnati-area CCR&R is 4C for Children, which provides free quality consultation across southwest Ohio.

Local pre-K initiatives: Cincinnati’s Preschool Promise, Columbus’s Early Start Columbus, and Cleveland’s PRE4CLE are city- or county-level supplements to state PFCC. Each has its own eligibility, rate structures, and provider participation requirements. Programs that are SUTQ-rated AND participate in their local pre-K initiative can earn 30-50% more per qualifying child than baseline PFCC.

Suburban and exurban opportunity: Outer-ring suburbs – Pickerington, Powell, Westerville (Columbus); Mentor, Strongsville, Solon (Cleveland); West Chester, Mason (Cincinnati) – have growing populations of dual-income families and chronic infant/toddler under-supply. Site selection in these markets often determines profitability more than program quality alone.

Cost to Start a Daycare in Ohio

Type B Family Child Care (1-6 children, in-home)

Item	Cost	Notes
Ohio LLC	$99	One-time
Federal EIN	Free	IRS
BCI + FBI fingerprints (provider + household 18+)	~$46/person	$22 BCI + $24 FBI
Pediatric First Aid + CPR + communicable disease + child abuse training	$80-$200	Per person
Home safety upgrades (smoke/CO detectors, gates, fenced play)	$200-$2,000	Variable
Initial supplies (cribs, mats, tables, materials)	$1,500-$5,000	Reusable across years
Liability insurance	$300-$800/year	In-home daycare rider
Marketing (web, listing services, signage)	$200-$1,000	Optional
Estimated total: $3,000-$10,000 to launch Type B family child care

Licensed Child Care Center (13+ children, non-residential)

A new licensed center in Ohio typically requires $80,000-$250,000+ to open: facility lease deposit and tenant improvements ($30,000-$120,000+ depending on whether the space already meets I-4 use group requirements); kitchen equipment if serving food onsite ($10,000-$30,000); furniture, cribs, classroom materials, outdoor playground equipment ($20,000-$60,000); state-required fire suppression upgrades ($5,000-$30,000); insurance, BWC opening deposit, payroll for opening staff ($15,000-$40,000 first quarter); permits, plan review, architect or design ($5,000-$25,000); and operating capital for the months between opening and reaching full enrollment ($10,000-$50,000+ depending on size). Cities with stricter zoning and building code (Columbus, Cleveland, Cincinnati) sit at the high end of these ranges; smaller markets at the lower end.

Key Ohio Agencies for Daycare Operators

Agency	What They Handle	Contact
Ohio Department of Children and Youth (DCY)	Child care licensing under OAC 5180:2-12; SUTQ; PFCC	childrenandyouth.ohio.gov
OCLQS (Ohio Child Licensing and Quality System)	Online portal for license applications, inspections, SUTQ rating	DCY OCLQS
Ohio Bureau of Criminal Investigation (BCI)	State fingerprint background check; Webcheck location directory	Ohio AG BCI
Ohio State Fire Marshal	Fire suppression, egress, occupancy load for child care centers	com.ohio.gov
Ohio Bureau of Workers’ Compensation (BWC)	Workers’ comp – mandatory state monopoly; daycare NCCI 9059	info.bwc.ohio.gov
Action for Children (central Ohio CCR&R)	Free SUTQ quality consultation for Franklin and surrounding counties	actionforchildren.org
4C for Children (southwest Ohio CCR&R)	Free SUTQ quality consultation for Hamilton and surrounding counties	4cforchildren.org
Starting Point (northeast Ohio CCR&R)	Free SUTQ quality consultation for Cuyahoga and surrounding counties	startingpoint.org

Related Ohio Business Guides

• Starting a Business in Ohio: Complete Guide

← Back to all Ohio business guides

Frequently Asked Questions

Who licenses child care in Ohio in 2026?

The Ohio Department of Children and Youth (DCY) at childrenandyouth.ohio.gov. Child care licensing was transferred from ODJFS to DCY effective fiscal year 2024 under House Bill 33 of 2023. The licensing rules were renumbered from OAC Chapter 5101:2-12 to OAC Chapter 5180:2-12 on January 2, 2025. Earlier references to ODJFS Office of Child Care are now obsolete.

What’s the difference between Type A and Type B family child care in Ohio?

Type B Family Child Care: 1-6 children at a time, not counting the provider’s own children. Lowest barrier to entry; can become certified through the county to receive PFCC payments. Type A Family Child Care: 7-12 children at a time, including the provider’s own children under 6. Full DCY license required. Licensed Child Care Center: 13 or more children at a non-residential facility under OAC Chapter 5180:2-12. Each successive tier requires more space, more staff, more documentation, and qualifies for higher PFCC reimbursement.

What are Ohio’s daycare ratios in 2026?

Under ORC 5104.033 (effective October 3, 2023): Infant under 12 months 5:1 (max group 12); young toddler 12-17 months 6:1 (max 12); older toddler 18-29 months 7:1 (max 14); older toddler 30-35 months 8:1 (max 16); preschool 3 years 12:1 (max 24); preschool 4-5 years 14:1 (max 28); school-age 6-10 years 18:1 (max 36); school-age 11-14 years 20:1 (max 40). When age groups are combined, the youngest age group’s ratio applies. During nap, ratios can double if specific conditions are met.

What is Step Up to Quality in 2026?

Ohio’s quality rating and improvement system, restructured from a five-star scale into three tiers: Bronze (former 1-2 star), Silver (former 3 star), Gold (former 4-5 star). SUTQ rating is required to participate in Publicly Funded Child Care (PFCC), the Early Childhood Education (ECE) Grant, and other state-funded programs. Ratings are validated through observed practice (CLASS, ECERS-3, ITERS-3), staff credentials, curriculum, and family engagement. Free quality consultation is available through your regional Child Care Resource and Referral agency (Action for Children, 4C for Children, Starting Point).

What background checks does Ohio require for daycare staff?

Both Ohio Bureau of Criminal Investigation (BCI) state fingerprint check (~$22) and FBI federal fingerprint check (~$24) for the owner/operator, every staff member, every volunteer with regular contact, and every household member 18 or older if operating Type A or Type B in-home. Submit through Webcheck-approved fingerprinting locations. Re-check every five years. Disqualifying offenses are listed in ORC 5104.013.

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

A Type B family child care home can launch for $3,000-$10,000 (LLC, fingerprints, training, home safety, supplies, in-home daycare insurance rider). A licensed child care center typically requires $80,000-$250,000+ covering facility lease and tenant improvements ($30,000-$120,000+), kitchen equipment ($10,000-$30,000), classroom and playground equipment ($20,000-$60,000), fire suppression ($5,000-$30,000), opening payroll and insurance ($15,000-$40,000 first quarter), permits and plan review ($5,000-$25,000), and operating capital to bridge to full enrollment ($10,000-$50,000+).