How to Start a Daycare in Pennsylvania (2026)

Last updated: February 25, 2026

Starting a daycare in Pennsylvania requires more regulatory compliance than most small businesses – but the demand is strong and consistent. Pennsylvania’s childcare system is overseen by the Department of Human Services (DHS) through the Office of Child Development and Early Learning (OCDEL). You’ll need a Certificate of Compliance, extensive background checks for all staff, specific facility requirements, and ongoing training.

Pennsylvania also offers significant support for childcare providers through the Keystone STARS quality rating system and Early Learning Resource Centers (ELRCs) that connect providers with subsidized childcare funding. This guide covers every step, cost, and requirement to legally open and operate a daycare in Pennsylvania.

Daycare Requirements in Pennsylvania at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	PA Department of State	$125	3-5 business days
EIN	IRS	Free	Immediate
Certificate of Compliance	DHS / OCDEL	No fee	3-6 months
FBI Fingerprint Background Check	FBI via 3M Cogent / IDEMIA	$22-$27 per person	2-4 weeks
PA State Police Criminal Check	PA State Police	$22 per person	2-4 weeks
ChildLine Child Abuse Clearance	DHS ChildLine	Free (volunteers) / $13 per person	2-4 weeks
First Aid / CPR Certification	Red Cross / AHA	$50-$100 per person	1 day
Fire Safety Inspection	Local fire marshal	Varies	Scheduled with DHS visit
General Liability Insurance	Private carrier	$1,500-$4,000/year	Same day
Workers’ Comp (if employees)	Private carrier or SWIF	Varies	Same day

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

Step 1: Form Your Business Entity

Form an LLC through the PA Department of State ($125). This provides personal liability protection – critical for a childcare business. Get a free EIN from the IRS and open a business bank account.

Step 2: Complete Background Checks

Pennsylvania requires three separate background checks for every person who will have direct contact with children. This includes owners, staff, and regular volunteers. All three must be completed before anyone can work with children:

FBI Federal Criminal History Check: Fingerprint-based check through the FBI. Cost: $22-$27. Required for anyone who has lived outside Pennsylvania within the past 10 years, but DHS recommends completing it for all staff.
PA State Police Criminal Record Check (Act 34): Check for Pennsylvania criminal history. Cost: $22. Apply online through the PA State Police PATCH system.
ChildLine Child Abuse History Clearance (Act 151): Checks for any founded reports of child abuse. Cost: $13 (free for volunteers). Apply online through the CWIS website.

All clearances must be renewed every 60 months (5 years). Staff cannot begin working with children until all three clearances are received.

Step 3: Prepare Your Facility

DHS has specific facility requirements for childcare centers. Key requirements include:

Indoor space: Minimum 35 square feet per child of usable indoor play space (not including hallways, bathrooms, kitchens, or offices)
Outdoor space: Must provide outdoor play space or regular access to a nearby park or playground
Bathrooms: Age-appropriate toilet facilities accessible to children
Kitchen/food prep: Separate area for food preparation if serving meals
Fire safety: Smoke detectors, fire extinguishers, posted evacuation plan, and approval from local fire marshal
Building occupancy: Certificate of occupancy from your municipality permitting use as a childcare facility
Zoning: Confirm your location is zoned for childcare – apply for a zoning variance if needed

Step 4: Apply for Certificate of Compliance

Apply for a Certificate of Compliance from the Department of Human Services, Office of Child Development and Early Learning (OCDEL). This is your state license to operate:

Contact your regional OCDEL Regional Office to request an application
Submit your completed application with all background checks, facility documentation, and staffing plan
A DHS licensing representative will schedule a pre-certification inspection of your facility
Address any deficiencies found during the inspection
Once approved, you’ll receive your Certificate of Compliance – there is no fee for the certificate itself

The entire process typically takes 3-6 months from application to approval. Plan accordingly and don’t sign a lease expecting to open immediately.

Step 5: Meet Staffing Requirements

Pennsylvania has strict staff-to-child ratio and qualification requirements:

Staff-to-Child Ratios (Childcare Centers)

Age Group	Staff-to-Child Ratio	Maximum Group Size
Infants (birth to 1 year)	1:4	8
Young Toddlers (1-2 years)	1:5	10
Older Toddlers (2-3 years)	1:6	12
Preschool (3-4 years)	1:10	20
Pre-K (4-5 years)	1:10	20
School-age (5+ years)	1:12	24

Director Qualifications

The director of a childcare center must have at least a bachelor’s degree in early childhood education, child development, or a related field – OR an associate’s degree plus additional experience. Minimum 1 year of experience working with children in a group setting.

Staff Training

First Aid and CPR: Required for all staff – must include infant/child CPR
Annual training: Each staff member must complete 6 hours of professional development per year in DHS-approved topics
New staff orientation: Complete within first 90 days of employment

Step 6: Get Insurance and Register for Taxes

Insurance:

General Liability Insurance: Critical for childcare – covers injuries, property damage, and negligence claims. Standard coverage: $1M/$2M. Cost: $1,500-$4,000/year for a small daycare.
Professional Liability (Abuse & Molestation): Specialized coverage for allegations of abuse or neglect. Often required and sometimes bundled with GL. Cost: $500-$2,000/year.
Workers’ Compensation: Mandatory if you have employees. Required from day one of employment.

Taxes:

Sales tax: Childcare services are generally exempt from PA sales tax. You do not need to collect sales tax on childcare tuition.
Income tax: 3.07% flat state rate plus local EIT (1%-2%) on net business income.
Employer taxes: UC tax and withholding if you have employees – register through myPATH.

Step 7: Enroll in Keystone STARS (Optional but Recommended)

Keystone STARS is Pennsylvania’s quality rating system for childcare providers. Benefits include:

Access to subsidized childcare funding through Early Learning Resource Centers (ELRCs)
Higher reimbursement rates for subsidized children at higher STAR levels
Free professional development and technical assistance
Quality improvement grants
Marketing advantage – parents actively seek STARS-rated programs

Levels range from STAR 1 (entry) to STAR 4 (highest quality). Enrollment is free and voluntary, but providers who accept subsidized children must participate.

Cost to Start a Daycare in Pennsylvania

Item	Cost	Notes
LLC Formation	$125	Certificate of Organization
Background Checks (per person)	$57-$62	FBI + State Police + ChildLine, times each staff member
First Aid/CPR Training (per person)	$50-$100	Red Cross or AHA
Certificate of Compliance	Free	No fee from DHS
Facility Lease (monthly)	$1,500-$5,000+	Varies greatly by location
Facility Renovation/Setup	$5,000-$30,000	Child-proofing, furniture, playground
Furniture & Equipment	$3,000-$10,000	Cribs, tables, chairs, toys, supplies
General Liability Insurance	$1,500-$4,000/year	$1M/$2M coverage
Professional Liability Insurance	$500-$2,000/year	Abuse & molestation coverage
Initial Supplies	$1,000-$3,000	Art supplies, books, cleaning, food

Estimated total startup cost: $15,000-$55,000 (not including lease deposits or major renovations)

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Frequently Asked Questions

What license do I need to open a daycare in Pennsylvania?

You need a Certificate of Compliance from the Department of Human Services (DHS), Office of Child Development and Early Learning (OCDEL). There is no fee for the certificate itself, but you must pass a pre-certification inspection, complete background checks for all staff, and meet facility and staffing requirements. The process typically takes 3-6 months.

What background checks are required for daycare staff in Pennsylvania?

Pennsylvania requires three separate background checks for every person with direct contact with children: (1) FBI fingerprint criminal history check ($22-$27), (2) PA State Police criminal record check ($22), and (3) ChildLine child abuse history clearance ($13). All three must be completed before a person can work with children and renewed every 5 years.

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

Ratios vary by age: 1:4 for infants (birth to 1 year), 1:5 for young toddlers, 1:6 for older toddlers, 1:10 for preschoolers (3-5 years), and 1:12 for school-age children. Maximum group sizes are double the ratio (e.g., 8 infants per group, 20 preschoolers per group).

Is daycare tuition subject to sales tax in Pennsylvania?

No. Childcare services are generally exempt from Pennsylvania sales tax. You do not need to collect sales tax on daycare tuition or fees.

What is Keystone STARS?

Keystone STARS is Pennsylvania’s quality rating system for childcare providers, ranging from STAR 1 to STAR 4. Benefits include higher subsidy reimbursement rates, free professional development, quality improvement grants, and marketing advantages. Enrollment is free and voluntary, but providers accepting subsidized children must participate.

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

Estimated startup costs range from $15,000-$55,000 not including lease deposits or major renovations. Key costs include facility setup ($5,000-$30,000), furniture and equipment ($3,000-$10,000), insurance ($2,000-$6,000/year), and background checks ($57-$62 per person). The Certificate of Compliance itself is free.

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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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