How to Start a Daycare in Vermont (2026)

Last updated: February 26, 2026

Starting a daycare in Vermont requires a license from the Vermont Department for Children and Families (DCF), Child Development Division (CDD). Vermont is notable among states in that it charges no fee to apply for or renew a childcare license – one of the only states in the country with this policy. However, the licensing process is thorough: background checks, site inspections, director qualification requirements, and mandatory health and safety training all apply. Vermont has invested heavily in childcare infrastructure in recent years, including expanded financial assistance programs, making it a relatively supportive environment for new childcare providers. This guide covers the complete licensing process with current requirements from official Vermont DCF sources for 2026.

Daycare / Childcare Requirements in Vermont at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Vermont Secretary of State	$155 (online)	~1 business day
Childcare License	Vermont DCF – Child Development Division	Free (no application or licensing fee)	Varies; plan for 60-90 days for Phase I-III process
Criminal Background Check (all staff)	Vermont Criminal Information Center (VCIC)	Included in licensing process (fee covered by CDD)	2-4 weeks
Fingerprint Check (all staff)	Vermont VCIC / FBI	Included in licensing process	2-6 weeks; must be renewed every 5 years
Pediatric CPR and First Aid Certification	Accredited provider (AHA, Red Cross)	$50-$150	Must be current before license is granted
Director Qualification Verification	Vermont DCF / CDD	No fee	Assessed during application review
Facility Inspection	Vermont DCF / CDD	No fee	Scheduled after Phase I clearance
Workers’ Compensation Insurance	Vermont Dept of Labor (required if employees)	Varies by carrier	Required before first employee starts

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

Step 1: Determine Your License Type

Vermont’s Child Development Division issues several types of childcare licenses:

• Center-Based Child Care and Preschool Programs: Care provided in a non-residential commercial or institutional setting. For more than 10 children year-round. Subject to the most comprehensive regulatory requirements including director qualification minimums and staff-to-child ratios.
• Licensed Family Child Care Home: Care in the provider’s own residence. Can serve up to 10 children year-round (up to 12 in summer when school is not in session). This is the most common home-based license type.
• Registered Family Child Care Home: A smaller-scale home-based operation serving fewer children. Registration requirements are less intensive than full licensure but still involve background checks and basic health and safety standards.
• After-School Programs: Serves school-age children (age 5 and up) before and after school hours and during school vacations. Different ratios and director qualifications apply.

Exemptions: Relatives caring for children in their own homes, and certain programs operated by religious organizations that meet specific criteria, may be exempt from licensing requirements. Contact the CDD at 800-649-2642 to verify your situation.

Step 2: Contact the Vermont CDD

Before submitting any application, contact the Child Development Division directly:

• Phone: 800-649-2642 (option 3)
• Email: AHS.DCFCDDChildCareLicensing@vermont.gov
• Website: dcf.vermont.gov/cdd/providers/become/licensed

A CDD licensing specialist will explain the current application process, provide current forms and documentation requirements, and answer questions specific to your proposed program. Requirements have been updated through Vermont’s recent childcare expansion investments, so always confirm directly with CDD rather than relying solely on third-party resources.

Step 3: Form Your Business Entity

Register your childcare business entity with the Vermont Secretary of State. An LLC provides liability protection and is the most common structure for childcare businesses. File Articles of Organization online at bizfilings.vermont.gov for $155. Get a free EIN from the IRS at irs.gov. Open a dedicated business bank account and maintain separate business finances from the start.

Step 4: Phase I – Background Clearance and Documentation

Phase I of Vermont’s three-phase childcare licensing process includes:

• Business registration documentation: Proof of your Vermont business entity registration (LLC, nonprofit, etc.)
• Financial documentation: Basic financial documentation demonstrating you can fund startup and operating costs
• Criminal background check: Required for all providers, directors, and staff. Conducted through the Vermont Criminal Information Center (VCIC). The CDD coordinates this process. Must be renewed every 5 years.
• Fingerprint-based check: Required in addition to the state criminal check for all providers and staff. The CDD will provide instructions for scheduling fingerprinting.
• Background check disqualifiers: Certain convictions automatically disqualify applicants. The CDD reviews others on a case-by-case basis. Contact the CDD for details.

Minimum age requirements: Directors of center-based programs must be at least 21 years old. Family child care providers must be at least 18 years old.

Step 5: Prepare Your Facility

Vermont’s childcare regulations address facility requirements in detail. Key physical requirements include:

• Indoor space: Minimum 35 square feet of usable indoor space per child (center-based programs)
• Outdoor play space: Minimum 75 square feet of usable outdoor space per child; safely enclosed; meets safety standards
• Sleeping arrangements: Safe sleep environment for infants; each infant must have their own approved crib or sleeping surface
• Bathrooms: Adequate toilet and handwashing facilities based on child count
• Safety requirements: Working smoke detectors, carbon monoxide detectors, fire extinguishers; all cleaning products, medications, and hazardous materials locked and out of reach
• Building permits: If modifying an existing space or constructing a new facility, secure all required local building permits before the CDD inspection

Step 6: Phase II – Application Submission and Inspection

Phase II involves submitting your completed application and passing the CDD inspection:

• Application system: Applications are managed through the Vermont Bright Futures Information System (BFIS). The CDD will provide access instructions.
• Director qualifications (center-based): The program director must hold a Vermont Early Childhood Career Ladder Level Four A or B Certificate or equivalent educational credentials plus relevant experience. Contact the CDD to verify what credentials meet this standard.
• Health and safety training: All providers must complete required health and safety trainings including pediatric CPR and first aid certification (through an accredited provider such as the American Heart Association or American Red Cross). Costs typically $50-$150.
• Policies and procedures: Written parent handbook, health and safety policies, emergency procedures, and discipline policies are reviewed during the application phase.
• CDD compliance inspection: A CDD licensing specialist conducts an on-site inspection of your facility to verify compliance with Vermont childcare regulations (Vermont Agency of Human Services Rule 3 for Residential Child Care Programs or Rule 4 for Center-Based Programs). Schedule this inspection after your application is processed.

Step 7: Phase III – License Issuance

After all Phase II requirements are verified, the CDD completes the final licensing determination. Your license is issued with a 3-year validity period. Renewal notices are sent 60 days before expiration. There is no renewal fee.

Vermont childcare licenses are posted publicly through the CDD’s childcare finder tool, giving prospective families easy access to verify your license status.

Staff-to-Child Ratios (Center-Based Programs)

Age Group	Maximum Ratio	Maximum Group Size
Birth to 18 months	1:4	8
18 to 36 months	1:5	10
Preschool (3 to 5 years)	1:10	20
School-age (5 and older)	1:13	26

Workers’ Compensation Insurance

Vermont requires workers’ compensation coverage for any employer with one or more employees. Daycare staff are employees, so coverage is mandatory as soon as you hire your first staff member. Purchase from a licensed private insurance carrier before your first employee begins work. For information: labor.vermont.gov/workers-compensation. Phone: 802-828-2286.

Cost to Start a Daycare in Vermont

Item	Cost	Notes
LLC Formation	$155	Online at bizfilings.vermont.gov
Annual Report (Year 1)	$45	Due within 3 months of fiscal year end
Childcare License	Free	Vermont charges no application or licensing fee
Background Checks (per staff member)	Covered by CDD	CDD coordinates; no direct cost to applicant
Pediatric CPR / First Aid Certification	$50-$150 per person	Required for all providers; renew per certification schedule
Facility Lease or Mortgage	Highly variable	Largest cost factor; depends on location and size
Furniture, Equipment, and Supplies	$5,000-$30,000	Cribs, toys, learning materials, outdoor equipment
Workers’ Compensation Insurance	Varies by payroll	Mandatory from first employee; childcare classified rates apply
General Liability / Professional Liability Insurance	$1,500-$4,000/year	Strongly recommended; some licensing arrangements require it
Building Modifications / Safety Upgrades	$2,000-$25,000+	Smoke detectors, door hardware, bathroom fixtures, fencing

Estimated total startup cost: $15,000-$100,000+ (facility costs are the primary variable; home-based programs typically cost less)

Related Vermont Business Guides

• How to Start a Hair Salon in Vermont
• How to Start a Food Truck in Vermont
• How to Start a Cleaning Service in Vermont

← Back to all Vermont business guides

Frequently Asked Questions

How much does a Vermont childcare license cost?

Vermont charges no fee to apply for or renew a childcare license. This is unusual – most states charge application and renewal fees. The licensing process does require background checks (coordinated and covered by the CDD), health and safety training (typical cost $50-$150 per person), and facility compliance, but the license itself is free. The Vermont Department for Children and Families, Child Development Division administers all childcare licensing.

How long does it take to get a Vermont daycare license?

Plan for 60 to 90 days for the full three-phase licensing process, though this can vary. Phase I (background clearance) may take 2-6 weeks depending on background check processing times. Phase II (application review and inspection scheduling) typically takes several weeks. Phase III (final compliance and license issuance) follows. Contact the CDD at 800-649-2642 for a current timeline estimate specific to your program type.

What qualifications does a Vermont daycare director need?

Directors of Vermont center-based childcare programs must hold a Vermont Early Childhood Career Ladder Level Four A or B Certificate or equivalent educational credentials with relevant professional experience. Specific requirements vary by program type. Contact the CDD at AHS.DCFCDDChildCareLicensing@vermont.gov to verify what credentials qualify for your specific program. Family child care home providers must be at least 18 years old and meet training requirements set by the CDD.

Do all staff members need background checks for a Vermont daycare?

Yes. Vermont requires criminal record checks and fingerprint-based checks for all providers and staff members in licensed childcare settings. These must be completed before the individual begins working with children. Background checks must be renewed every 5 years. The CDD coordinates the process through the Vermont Criminal Information Center (VCIC). Certain criminal convictions automatically disqualify an individual from working in Vermont childcare; contact the CDD for details.

What are the staff-to-child ratios for Vermont daycare centers?

Vermont center-based programs must maintain: 1:4 for infants (birth to 18 months); 1:5 for toddlers (18-36 months); 1:10 for preschool (3-5 years); 1:13 for school-age (5+). These are maximum ratios – you must always have sufficient qualified staff to meet these requirements during all operating hours.