How to Start a Daycare in Vermont (2026)

Last updated: September 11, 2026

To open a daycare in Vermont, choose the program type, complete the Child Development Division’s application process, and prepare your staffing and facility for that license. Your age groups and approved capacity determine the staffing budget and the space you need.

Start local market research with the ages and schedules of families you intend to serve. Compare nearby programs, licensed capacity, vacancies, and tuition before forecasting enrollment. A statewide childcare shortage does not by itself establish demand at a particular address.

Daycare / Childcare Requirements in Vermont at a Glance

Requirement	Agency / Source	Cost	Timeline
LLC formation (if chosen)	Vermont Secretary of State — bizfilings.vermont.gov	$155	File online; allow for processing time
Annual Report	Vermont Secretary of State	$45 for a domestic LLC	Due within 3 months after the fiscal year ends
Childcare License	Vermont DCF — Child Development Division	No application fee listed	Timing depends on application completeness and site readiness; full license generally 3 years
Background Check + Fingerprinting (all staff)	Vermont Criminal Information Center (VCIC) via CDD	Confirm appointment charges	Clearance before permitted child contact; repeat checks at least every 5 years
Pediatric CPR and First Aid Certification	AHA, Red Cross, or equivalent accredited provider	$50-$150 per person	Illustrative training allowance; meet the deadline for each role and program type
Director Qualification Verification	Vermont DCF / CDD	No fee	Reviewed during Phase II application
CDD Compliance Inspection	Vermont DCF / CDD	No fee	Final site visit in Phase III
Workers’ Compensation Insurance	Vermont Department of Labor (mandatory at 1 employee)	Varies by payroll; private carrier required	Generally required when employing staff; premium depends on payroll and insurer classification
STARS quality improvement	Vermont DCF — STARS program	No fee	Level 1 for programs in good standing; higher levels voluntary

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

Step 1: Determine Your License Type

Vermont regulates registered family child care homes, licensed family child care homes, center-based child care and preschool programs, and afterschool programs. Start with CDD’s program-type guidance.

Registered Family Child Care Home

A home program can serve up to six children under six plus four school-age children under the year-round rules. Age mix, staffing, the provider’s own children, and summer arrangements affect the limit. Use the registered-home capacity charts in section 6.2.1 of the family-home regulations before setting enrollment.

Licensed Family Child Care Home

A licensed home operates under the capacity written on its license and the age-and-staffing charts in section 6.2.2. Those charts allow different combinations, with up to 12 children in specified configurations. There is no blanket 14-child summer allowance.

Center-Based Child Care and Preschool Program

A center is not defined by a minimum of 13 children. Vermont’s rules include centers licensed for 12 or fewer children, with director requirements changing at 13 and 60 children. Site approval, staffing, and the license determine capacity.

Afterschool Program and Exemptions

Afterschool programs have separate rules. Vermont law also provides specific exemptions, including care for children from no more than two families other than the caregiver’s family and qualifying care connected with religious services or activities. Review 33 V.S.A. § 3502 and establish which category applies before opening.

Step 2: Pre-Application Consultation with the Vermont CDD

The Child Development Division’s licensing specialists are genuinely helpful before you commit to a lease or purchase. Contact them first:

• Phone: 800-649-2642 (option 3)
• Email: [email protected]
• Website: dcf.vermont.gov/cdd/providers/become/licensed
• Application system: Vermont Bright Futures Information System (BFIS) — CDD provides access instructions

A licensing specialist will review your proposed program, identify which license type fits, explain current Phase I-III requirements, and answer site-specific questions. Vermont’s childcare regulations have been updated through significant state investment in recent years, so confirm directly with CDD rather than relying solely on third-party summaries.

Step 3: Form Your Business Entity

Choose the ownership structure that fits your program. An LLC is an option, not a childcare licensing requirement. CDD’s Phase I guide explicitly includes LLCs and sole proprietorships as examples. An entity filing does not replace the childcare license.

If you choose a Vermont LLC, file Articles of Organization through Vermont’s business filing portal. The domestic LLC filing fee is $155 and its annual report fee is $45 under Vermont’s LLC statute. Obtain the tax identification and business documentation required for your application, and keep business finances separate.

Step 4: Phase I — Business and Application Documents

CDD’s Phase I guide starts with business registration, IRS documentation, the W-9, an application request, and required background-check authorization. Complete the documents for your selected program type. Registered homes have their own application route.

Background Checks

CDD coordinates the required criminal-history, registry, and fingerprint checks. Requirements extend beyond staff with unsupervised contact and include specified household members in family homes. Follow CDD’s clearance instructions before allowing someone to work with children; comprehensive checks recur at least every five years. Fingerprint collection can involve a separate appointment charge, so do not assume every part is free.

Gather prior-state residence information and the required authorizations early. For licensing questions, the correct contact is 800-649-2642, option 3, or [email protected].

Step 5: Prepare Your Facility

Plan the facility against your program’s licensing rules during Phase II so it is ready for the final Phase III visit. Allow time for zoning, fire safety, water and other required approvals.

Indoor Space

Center-based programs must provide a minimum of 35 square feet of usable indoor space per child. Usable space excludes bathrooms, storage rooms, hallways, and areas not directly accessible to children during activities. For a 20-child preschool program, this means at least 700 square feet of actual activity area — not total building square footage.

Outdoor Play Space

Minimum 75 square feet of usable outdoor space per child, safely enclosed by fencing or natural barriers. The space must meet Vermont safety standards for equipment, surfacing under play structures, and general hazard-free conditions. Urban programs with limited outdoor access should contact CDD early to discuss alternatives.

Infant Sleep Safety

Prepare safe-sleep arrangements under the rules for your program type, including approved sleep equipment, clear sleep spaces, required supervision, and written policies. Use the CDD regulations and guidance when selecting equipment and training staff.

Safety and Health Infrastructure

Plan for the applicable fire, sanitation, drinking-water, lead-safety and emergency requirements. Obtain the required site approvals and keep documentation ready for CDD’s review.

Step 6: Phase II — Application and Qualifications

Phase II assembles the detailed application, site documentation, qualifications, policies, and required clearances. Use CDD’s Phase II resource guide to organize each item. The final compliance visit occurs in Phase III.

Director Qualifications for Centers

The program director must be at least 21. Qualifications depend on licensed capacity under rule 7.3.1:

• Up to 12 children: qualified as a teacher associate.
• 13–59 children: teacher-associate qualifications plus the specified director certificate or management/supervision and curriculum coursework.
• 60 or more children: teacher qualifications, additional experience, and the specified director credential or additional coursework.

Centers licensed for 13 or more also have a business-management coursework requirement or must employ a qualified business manager. A Level 4A or 4B certificate is one route to teacher qualification, not a universal requirement for every director.

Training and Written Policies

Prepare orientation, pediatric first aid and infant/child CPR documentation, emergency procedures, parent information, health policies, and safe-sleep practices for your program type. Training deadlines vary by role and setting; build them into hiring and opening plans using the licensing regulations and current administrative memos.

Step 7: Phase III — Final Visit and Licensing Decision

In Phase III, the licensor conducts the final site visit, documents compliance, and identifies any required corrections. After review, a licensing supervisor issues the decision. Complete the approval process before opening.

A full license generally runs for three years, with annual compliance requirements during that period. Provisional licenses have different terms. Track your expiration date and submit a complete renewal application in time; the center rules recommend at least 45 days before expiration.

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

Vermont’s center-based rule 6.2.1.3 lists the following age bands. The overlapping bands are part of the rule; do not merge them into a single infant or toddler category.

Age band in the rule	Staff-to-child ratio	Maximum group size
Birth–18 months	1:4	8
18–30 months	1:4	10
24–36 months	1:5	10
32–42 months	1:6	15
36 months–kindergarten	1:10	20
First grade and up	1:13	26

For mixed-age groups, rule 6.2.2 applies the youngest child’s ratio and group-size requirements. Nap-time supervision has separate provisions in rule 6.2.3. See the center-based regulations, sections 6.2 and 7.3, and the state’s 2025–2027 CCDF plan for the staffing framework.

Vermont STARS Quality Rating System

STARS is Vermont’s five-level quality recognition and improvement system. CDD’s FY2027 budget report says registered and licensed programs in good standing are considered level 1; engagement at higher levels is voluntary. Specialized programs or funding arrangements can have additional quality requirements.

Use the CDD STARS resources to plan quality improvement and review current incentives. Keep licensing, STARS participation, and subsidy enrollment as separate items in your opening checklist.

Vermont Child Care Financial Assistance Program (CCFAP)

CCFAP helps eligible families pay for childcare. Providers must complete the program’s participation requirements to receive payments; obtaining a childcare license does not automatically enroll the business in CCFAP.

Use CDD’s provider payment and enrollment resources for agreements, current rates, attendance reporting, and the payment calendar. Families can find eligibility and application information on the CCFAP benefits page. Model your revenue using the applicable payment rules and each family’s authorization rather than assuming all tuition is reimbursed.

Payroll Compliance: Minimum Wage, VESL, and Workers’ Compensation

Vermont’s minimum wage is $14.42 per hour from January 1, 2026 for covered employees. Budget payroll taxes and substitute coverage as well as wages. See the Department of Labor’s current wage guidance.

Vermont’s Earned Sick Time (VESL) law under 21 V.S.A. § 481 requires employers to allow employees who work an average of at least 18 hours per week to accrue paid sick leave at a rate of one hour per 52 hours worked, capped at 40 hours per year. For a full-time daycare teacher working 40 hours per week, that means accruing approximately 40 hours of sick leave over the year. Budget for VESL-covered absences in your staffing plan — childcare facilities are particularly vulnerable to cascading absences when illness circulates through staff.

Workers’ compensation is mandatory for any Vermont employer with one or more employees. Childcare is physically demanding and involves exposure to childhood illnesses and injury risk from active children. Purchase coverage from a licensed private carrier before your first employee begins work. Contact the Vermont Department of Labor at labor.vermont.gov/workers-compensation or 802-828-2286 for carrier referrals and coverage requirements.

Vermont Family and Medical Leave Insurance (VT-FAMLI)

Vermont launched its voluntary Family and Medical Leave Insurance program (VT-FAMLI) in 2023 through a state contract with The Hartford as the program’s insurer. Unlike Massachusetts, Colorado, Washington, and other states with mandatory PFML programs, Vermont’s VT-FAMLI is voluntary for private-sector employers. There is no payroll deduction requirement and no employer mandate.

Individual enrollment (Phase 3) opened May 1, 2025, allowing individual Vermont workers to opt into coverage. Benefits became available to enrolled individuals starting January 1, 2026. If you want to offer VT-FAMLI as a benefit to your childcare staff — which can be a meaningful recruitment differentiator in the tight childcare labor market — contact The Hartford or visit governor.vermont.gov/vtfmli for current enrollment details and premium information for private employers.

Vermont Daycare Market: Where the Demand Is

Research the area families can realistically travel to, the ages you plan to serve, and the hours they need. Compare historical childcare prices by state and childcare business density by state with current local evidence.

Use First Children’s Finance Vermont for childcare business assistance and its Vermont supply-and-demand resources. Check local licensed programs, vacancies, employer schedules, and parent interest. A waiting list may contain duplicate registrations and does not equal committed enrollment.

Build a monthly forecast for enrollment by age, tuition and subsidy receipts, staffing, substitute coverage, rent, and insurance. For resort or shift-work communities, investigate actual schedules and year-round enrollment before assuming seasonal demand will support the program.

Cost to Start a Daycare in Vermont

When budgeting for coverage, our daycare insurance guide explains coverage options and questions to consider before requesting a quote.

Item	Cost	Notes
LLC formation (if chosen)	$155	File online; allow for processing time
Annual Report (Year 1)	$45 for a domestic LLC	Due within 3 months after the fiscal year ends
Childcare License	No application fee listed	Application and renewal fees are not listed in CDD’s application guides; facility and other approval expenses are separate
Background Checks	Check collection and processing arrangements	CDD coordinates required checks; fingerprint collection charges can be separate
Pediatric CPR / First Aid	$50-$150 per person	Illustrative training allowance; meet the deadline for each role and program type
Facility Lease	Highly variable	Obtain quotes for a site approved for your program; include utilities and deposits
Facility Build-Out and Safety Upgrades	$5,000-$50,000+	Fencing, bathroom fixtures, crib equipment, smoke/CO detectors
Furniture, Equipment, and Learning Materials	$5,000-$30,000	Cribs, mats, toys, outdoor equipment, sensory materials
General Liability / Professional Liability	$1,500-$4,000/year	Illustrative budget range, not a quote; center rules require liability insurance
Workers’ Compensation	Varies by payroll	Generally required when employing staff; premium depends on payroll and insurer classification

Illustrative planning range: $20,000–$120,000+. This is not a Vermont survey result or a contractor quote. Home-based programs and leased centers have different cost structures. Replace the training, build-out, equipment, rent and insurance allowances above with local quotes, and budget operating reserves separately.

← Back to all Vermont business guides

Frequently Asked Questions

How much does a Vermont childcare license cost?

CDD’s application guides do not list an application fee. Your startup budget must still cover training, facility preparation, required approvals, insurance, and any fingerprint-collection charges. If you choose a Vermont LLC, the state formation fee is $155 and its domestic annual report is $45.

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

Timing depends on complete documentation, background clearances, staff qualifications and site readiness. CDD’s licensed-program process has three phases: business and initial application documents, the detailed application, and a final licensing visit and decision. The guides do not establish a guaranteed 60–90-day total.

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

The center rule lists 1:4 for birth–18 months (maximum group 8), 1:4 for 18–30 months (10), 1:5 for 24–36 months (10), 1:6 for 32–42 months (15), 1:10 for 36 months–kindergarten (20), and 1:13 for first grade and up (26). Mixed-age groups follow the youngest child’s requirements.

What qualifications does a Vermont daycare director need?

Center directors must be at least 21. Requirements depend on licensed capacity: teacher-associate qualifications for up to 12 children; additional director preparation for 13–59; and teacher qualifications, additional experience and director preparation for 60 or more. See rule 7.3.1 for the permitted routes.

Do Vermont daycare workers need background checks?

Yes. Required criminal-history, registry and fingerprint checks apply to staff and other specified people, including household members in family homes. Follow CDD’s clearance and supervision instructions before work with children. Comprehensive checks recur at least every five years; fingerprint collection charges can be separate.

Is Vermont’s STARS quality rating required for daycare licensing?

Registered and licensed programs in good standing are considered STARS level 1. Engagement at higher levels is voluntary, although specialized programs or funding arrangements may have additional requirements. STARS and CCFAP enrollment are separate from obtaining a childcare license.