Last updated: April 24, 2026

How to Start a Daycare in Pennsylvania (2026)

Pennsylvania’s child care licensing system has a distinct structure that sets it apart from most states. The Department of Human Services (DHS), through the Office of Child Development and Early Learning (OCDEL), issues one of three separate certifications depending on how many children you care for: a Family Child Care Home (4-6 unrelated children), a Group Child Care Home (7-12 unrelated children in a residential setting), or a Child Care Center (7 or more unrelated children in a non-residential setting). Each falls under a different regulatory chapter with distinct ratios, square footage minimums, and director qualifications. Get the classification wrong and your application will be returned.

Pennsylvania regulates child care centers under 55 Pa. Code Chapter 3270, with the strictest ratios for infants (1:4, maximum group of 8) and a graduated schedule that reaches 1:15 for older school-age children. Indoor child care space must provide at least 40 square feet per child — 5 sq ft higher than most states’ 35 sq ft minimum — and outdoor play space requires 65 sq ft per child. Pennsylvania also requires clearances under the Child Protective Services Law (CPSL) — not just a criminal background check but specifically CPSL clearances, FBI fingerprints, and a Pennsylvania Child Abuse History Clearance (PA Act 153). The clearances are the most common source of hiring delays.

On the positive side, Pennsylvania does not charge a licensing fee for child care certification and the orientation training is free. The state also runs three major subsidy and grant programs — Child Care Works (subsidy at the 75th percentile of market rate as of January 1, 2025), Pre-K Counts (~$11,000/full-time slot in the 2026-27 proposed budget), and Head Start Supplemental Assistance Program (HSSAP) — which collectively represent the largest revenue stream available to Pennsylvania child care providers outside tuition.

Daycare Requirements in Pennsylvania at a Glance

Requirement	Agency	Cost	Timeline
LLC Certificate of Organization	PA Dept. of State	$125	7-10 business days
Act 122 Annual Report (from 2025)	PA Dept. of State	$7/year	LLC window Jan 1 – Sep 30
DHS Online Orientation (required first step)	PA DHS / OCDEL	Free	Self-paced; certificate valid 1 year for in-person step
DHS In-Person Orientation Training	PA DHS Regional OCDEL Office	Free	Attend within 1 year of online module
Certificate of Compliance (Child Care Center)	PA DHS / OCDEL Regional Office	Free (no application fee)	90-180 days typical from application to issuance
CPSL Clearances (all staff, volunteers, household members)	PA DHS, State Police, FBI	~$22 PA State Police + ~$21 child abuse history + $23.85 FBI fingerprints	3-10 business days per clearance
Sales Tax License (Most services exempt but taxable goods sales)	myPATH	Free	Before selling taxable items
Workers’ Compensation Insurance	Private carrier or SWIF	Varies (NCCI 8869 Day Care Services)	Before first employee
General Liability + Professional Liability	Private carrier	$1,000-$3,500/year	Typically required as part of licensing
Keystone STARS Quality Rating (voluntary)	Pennsylvania Key	Free; grants and stipends tied to rating	Ongoing assessment; higher star = higher subsidy reimbursement
Child Care Works Provider Enrollment (subsidy)	Local Early Learning Resource Center (ELRC)	Free to enroll; revenue opportunity	After Certificate of Compliance

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

Step 1: Complete DHS Orientation Training

Every prospective Pennsylvania child care provider must complete orientation training before DHS will accept a licensing application. The orientation has two parts, both free of charge:

• Online module — “DHS Orientation: Opening a Child Care Center or Group Child Care Home” — self-paced, completed through the DHS online learning system. Issues a Certificate of Completion.
• In-person training — scheduled at your regional OCDEL office after you complete the online module. You must attend the in-person session within one year of completing the online module or your certificate expires.

Find your regional OCDEL office on the Child Care Orientation page. Pennsylvania has regional OCDEL offices in Harrisburg, Philadelphia, Pittsburgh, Scranton, and smaller regional hubs.

Step 2: Choose Your Child Care Classification

Pennsylvania regulates three separate categories of child care under distinct Pennsylvania Code chapters:

• Family Child Care Home — 4-6 unrelated children in a private residence. Regulated by 55 Pa. Code Chapter 3290. Lowest barrier to entry.
• Group Child Care Home — 7-12 unrelated children in a private residence with at least one non-primary-caregiver staff member. Regulated under 55 Pa. Code Chapter 3280.
• Child Care Center — 7 or more unrelated children in a non-residential facility. Regulated under 55 Pa. Code Chapter 3270 — the most detailed regulatory chapter.

This guide focuses primarily on Child Care Centers (Chapter 3270), which is the most regulatory-intense path and the one most aspiring commercial operators take. Family and Group Home paths share many requirements but with lower facility thresholds.

Step 3: Form Your Pennsylvania LLC

File a Certificate of Organization with the Pennsylvania Department of State for $125. Designate a registered office with a PA street address. Get your free federal EIN at IRS.gov. Remember to file the new Act 122 annual report each year between January 1 and September 30 (fee $7). For child care real estate, consider whether to hold the property in a separate LLC from the operating entity — a common asset-protection pattern.

Step 4: Meet 55 Pa. Code Chapter 3270 Facility Requirements

Staff:Child Ratios (§ 3270.51)

Age Group	Maximum Staff:Child Ratio	Maximum Group Size
Infant (under 12 months)	1:4	8
Young toddler (12-24 months)	1:5	10
Older toddler (24-36 months)	1:6	12
Preschool (3 years to school entry)	1:10	20
Young school-age (kindergarten – 3rd grade)	1:12	24
Older school-age (4th grade+)	1:15	30

Mixed-age groups use the ratio of the youngest child in the group (§ 3270.52). This matters: a 1:4 infant ratio applies to a group containing even one infant, no matter how many older toddlers are present.

Space Requirements (§§ 3270.61-3270.62)

• Indoor child care space: 40 square feet per child (total allowable occupancy = total sq ft / 40)
• Outdoor play space: 65 sq ft per child; exceptions — 40 sq ft per infant, 50 sq ft per toddler
• Separate quiet/nap area required
• Designated diapering area with dedicated handwashing sink (not same sink as food prep)
• Age-appropriate restrooms with a minimum of one toilet and one sink per 15 children

Director Qualifications (§ 3270.34)

At least one director must be on site a minimum of 30 hours per week, holding one of the following credentials:

• Bachelor’s degree in early childhood education (ECE) or related field + 1 year experience, or
• Bachelor’s degree with 30 credits in relevant field + 2 years experience, or
• Associate’s degree in ECE or related field + 3 years experience, or
• Associate’s degree with 30 credits in relevant field + 4 years experience

Fire and Safety (§§ 3270.91-3270.95)

• Monthly fire drills, documented in writing
• Smoke and fire detection systems per municipal fire code
• Marked emergency exits, at least two per room at or above the ground floor
• Restrictions on space heaters, fireplaces, and wood/coal stoves in child care areas

Step 5: Complete CPSL Background Clearances

Pennsylvania’s Child Protective Services Law (CPSL) requires three specific clearances for every staff member, volunteer with unsupervised contact, and household member age 14+ in family/group home settings. This is stricter than generic state background checks:

• PA Child Abuse History Clearance (Act 153) — through the Department of Human Services; ~$21 fee; required every 60 months
• PA State Police Request for Criminal Records Check — through the PA State Police; ~$22 fee; required every 60 months
• FBI fingerprint-based clearance — through IdentoGO PA vendor; $23.85 fee; required for all staff, even PA-only residents

Total clearance cost per staff member: approximately $67. Plan 3-10 business days per clearance. These clearances are the single most common source of hiring delays in Pennsylvania daycares — order them first when onboarding staff. All clearances must be reclear every 60 months. Clearance documentation must be kept on-site and reviewed at every OCDEL inspection.

Step 6: Submit Your DHS Application

After completing orientation and securing a compliant facility, submit your Certificate of Compliance application through the Pennsylvania DHS self-service portal. Pennsylvania does not charge a licensing fee for child care certification — this is different from many states that charge $300-$1,000 for initial licensing.

Your application packet must include:

• DHS orientation certificate (online + in-person)
• Facility floor plan showing child care, nap, diapering, restroom, kitchen, and emergency exit areas
• Outdoor play area diagram and fencing documentation
• Sample policies: discipline, emergency/disaster, illness and medication, transportation, unenrollment
• Sample enrollment forms, health assessment forms, immunization tracking
• Director qualifications documentation
• Staff qualification files for each planned hire
• Proof of general liability insurance
• Menu (if serving meals) and nutrition program documentation
• Completed CPSL clearances for the director, owner, and planned staff

OCDEL assigns a regional licensing representative who reviews your packet and conducts the initial on-site visit. Allow 90-180 days from application to issuance in most regions — Philadelphia and Allegheny regional offices tend toward the longer end because of higher application volume.

Step 7: Pass Local Inspections

Depending on your location, additional inspections may be required by:

• Municipal building inspector — verify occupancy classification for child care, ADA compliance, and commercial kitchen code compliance if cooking on-site
• Municipal or county fire marshal — sprinkler, alarm, and egress inspection
• Pennsylvania Department of Agriculture — food license if serving full meals or snacks prepared on premises (applies in the 60 non-county-health-department counties)
• County health department — in Allegheny, Bucks, Chester, Delaware, Erie, Montgomery, Philadelphia: food service inspection replaces PDA where applicable
• Department of Environmental Protection (DEP) — if using well water, septic, or onsite wastewater treatment

Step 8: Enroll in Child Care Works and Apply for Keystone STARS

Child Care Works (Subsidy Revenue)

Child Care Works (CCW) is Pennsylvania’s child care subsidy program for low-income working families. For most Pennsylvania child care operators, CCW enrollment is a significant revenue stream — in some markets, subsidy-eligible families represent the majority of demand.

• Enroll through your local Early Learning Resource Center (ELRC). Pennsylvania is divided into 13 ELRC regions, each operating as the single point of entry for subsidy, Pre-K Counts, and Keystone STARS in that region.
• As of January 1, 2025, subsidy base rates (the Maximum Child Care Allowance) are set at the 75th percentile of the Market Rate Survey — a substantial increase over prior rates.
• Higher Keystone STARS ratings unlock higher subsidy reimbursement tiers, which is one of the main financial incentives to pursue Keystone STARS.

Keystone STARS (Quality Rating)

Keystone STARS is Pennsylvania’s voluntary Quality Rating and Improvement System, run by the Pennsylvania Key. Programs earn STAR 1, STAR 2, STAR 3, or STAR 4 designations (Pennsylvania uses a 4-level system, not the 5-level system used in some states like Florida). Higher ratings unlock:

• Higher subsidy reimbursement rates
• Staff T.E.A.C.H. scholarships for continuing education
• Continuous Quality Improvement (CQI) awards and stipends
• Priority eligibility for Pre-K Counts and HSSAP funding
• Statewide marketing recognition

Keystone STARS is free to enter but requires ongoing investment in staff qualifications, classroom quality, family engagement, and program leadership. Most providers begin at STAR 1 (entry level) and progress upward over 2-5 years.

Pennsylvania Daycare Revenue Opportunities Beyond Tuition

Pennsylvania has one of the most developed state-level ecosystems for child care funding in the country — a structural advantage for providers who can qualify for state-funded slots.

• Pre-K Counts: State-funded pre-K for 3-4 year olds from income-eligible families. Proposed 2026-27 funding rate: $11,000/full-time slot, $5,500/part-time slot (up from $10,750/$5,375). Requires RFP-competitive award, typically for STAR 3/STAR 4 programs with specific curriculum and assessment commitments.
• Head Start Supplemental Assistance Program (HSSAP): State funding that extends federal Head Start to more slots. Proposed 2026-27 budget: +$2M increase on top of existing funding.
• Child Care Works (CCW): Subsidy for birth-to-13 care for working families at or below 200% of FPL (at entry). 75th-percentile base rates effective Jan 1, 2025.
• Child Care Recruitment and Retention Program: $35M total program providing direct staff retention stipends — supports workforce without being tied to enrollment.
• Federal Child and Adult Care Food Program (CACFP): USDA-funded meal reimbursement for non-profit-sponsor-affiliated centers and family homes.
• Pittsburgh’s Pre-K for PGH and Philadelphia’s PHLpreK: City-level pre-K programs layered on top of Pre-K Counts in those two markets, representing additional revenue channels for centers in the two largest cities.

Pennsylvania Daycare Market: Where the Demand Is

• Philadelphia: Acute shortage of infant and toddler slots, particularly in Center City, University City, and Kensington. PHLpreK provides supplemental city funding for 3-4 year old slots. Philadelphia’s child care facility permit is issued separately by the city in addition to the DHS Certificate of Compliance.
• Pittsburgh / Allegheny County: UPMC, CMU, and Pitt generate steady workforce demand. Allegheny County’s Pre-K for PGH layers onto state Pre-K Counts funding. Allegheny County Health Department inspects food service at child care centers (not PDA).
• Lehigh Valley: The fastest-growing region for child care demand statewide. Amazon and logistics expansion + Hispanic workforce growth creating underserved markets in Allentown, Easton, and Bethlehem. Lower competition than Philadelphia or Pittsburgh.
• Central PA (Harrisburg, Lancaster, York): Heavy state government workforce; Hershey Medical Center; Lancaster’s growing economy. Lancaster has several strong existing operators (YMCA, Lancaster County Early Learning Centers) setting market benchmarks.
• Pittsburgh’s North Hills, Philadelphia Main Line, Chester County: High-income suburban markets where premium private-pay tuition supports higher-end centers with Montessori, Reggio Emilia, or bilingual programs. Demand exceeds supply across most of the Main Line.
• Rural Pennsylvania: Critical child care deserts in NEPA, North Central, and Western PA rural counties. State-backed expansion grants and Head Start expansion target these areas. Lower tuition ceilings but also lower property costs.

Cost to Start a Daycare in Pennsylvania

Expense	Startup Range	Notes
LLC formation + registered office	$125-$400	$125 state fee + optional CROP service
DHS Orientation + License	$0	Free — PA does not charge a licensing fee
CPSL clearances (initial staff of 6)	$400-$500	$67 per person × 6 staff typical startup team
Facility lease + first/last/security	$12,000-$60,000	Commercial lease heavily dependent on market
Build-out / renovation (if needed)	$20,000-$200,000+	Partitioning, diapering sinks, fencing, playground safety surfacing
Playground + outdoor equipment	$8,000-$40,000	Must meet ASTM and CPSC safety standards; fall surfacing
Classroom furnishings + educational materials	$10,000-$50,000	Age-appropriate tables, cots/cribs, shelving, curriculum
Commercial kitchen equipment (if meals on-site)	$8,000-$40,000	Required if serving full meals prepared on premises
Initial insurance (GL + professional liability)	$1,000-$3,500/year	Premium higher in Philadelphia and Pittsburgh
Workers’ compensation (required at 1 employee)	$1,500-$6,000/year	NCCI 8869 Day Care Services
Software (enrollment, billing, parent comms)	$1,200-$4,800/year	Brightwheel, Procare, Kangarootime
Marketing + pre-enrollment	$500-$3,000	Google Business Profile, local community targeting
Total realistic startup (existing space, small center)	$50,000-$150,000	Family / small group home starts lower ($15,000-$30,000)
Total realistic startup (new-build or heavy renovation)	$150,000-$500,000+	Dependent on playground + full commercial kitchen + market

Related Pennsylvania Business Guides

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Frequently Asked Questions

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

Pennsylvania does not charge a licensing fee for child care certification. Both the online and in-person OCDEL orientation trainings are free. However, a complete startup costs far more than the license itself: CPSL background clearances run about $67 per person, general liability insurance is $1,000-$3,500/year, facility build-out can easily exceed $50,000, and furnishings plus initial inventory can add another $20,000-$50,000 depending on capacity.

What are the Pennsylvania daycare staff-to-child ratios?

Under 55 Pa. Code § 3270.51, maximum ratios are: 1:4 for infants (max 8), 1:5 for young toddlers (max 10), 1:6 for older toddlers (max 12), 1:10 for preschool (max 20), 1:12 for young school-age, and 1:15 for older school-age. Mixed-age groups use the youngest child’s ratio. Pennsylvania also requires 40 sq ft of indoor child care space per child and 65 sq ft of outdoor play space (40 sq ft for infants, 50 for toddlers).

What background checks does Pennsylvania require for daycare employees?

Pennsylvania’s Child Protective Services Law (CPSL) requires three clearances for every staff member, volunteer with unsupervised contact, and household member age 14+ in a family/group home: PA Child Abuse History Clearance (~$21), PA State Police criminal background check (~$22), and FBI fingerprint-based clearance ($23.85). All three must be reclear every 60 months. Total per person: approximately $67. Plan 3-10 business days per clearance — they are the most common source of hiring delays.

Do I need a Pennsylvania sales tax license to run a daycare?

Child care services themselves are generally not subject to Pennsylvania sales tax. However, if you sell any taxable items (uniforms, bottled drinks, art-fair goods) you need a Sales Tax License. Most pure-service daycares do not need one. Philadelphia daycares still need a free Commercial Activity License (CAL) even without sales tax obligations.

What is Keystone STARS and do I need to participate?

Keystone STARS is Pennsylvania’s voluntary Quality Rating and Improvement System. Programs earn STAR 1, STAR 2, STAR 3, or STAR 4 designations (a 4-level system). Participation is voluntary but economically important — higher STAR levels unlock higher Child Care Works subsidy reimbursement, priority eligibility for Pre-K Counts and HSSAP, T.E.A.C.H. scholarships for staff, and Continuous Quality Improvement awards. Most providers who plan to accept subsidy or state pre-K funding pursue Keystone STARS.

Can I run a Pennsylvania daycare out of my home?

Yes — Pennsylvania has two home-based categories: Family Child Care Home (4-6 unrelated children) under 55 Pa. Code Chapter 3290, and Group Child Care Home (7-12 unrelated children with at least one non-primary-caregiver staff) under Chapter 3280. Home-based care typically has lower startup costs ($15,000-$30,000) but all CPSL clearances apply to household members age 14+ and the home must pass OCDEL inspection. Most PA zoning codes allow family/group child care as a permitted accessory use in residential districts.

How long does Pennsylvania daycare licensing take?

Plan for 90-180 days from submitting your complete application to receiving your Certificate of Compliance. The timeline depends on your regional OCDEL office’s volume (Philadelphia and Allegheny take longer), the completeness of your application (missing CPSL clearances or facility documentation causes resubmission), and how fast local municipal fire and building inspections are scheduled. Start orientation training early — it’s the first prerequisite and the in-person session certificate expires after one year if you haven’t applied.