Starting a child care business: your first-month checklist
The usual order of things. Pick your state below for its exact rules, deadlines and official links.
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Get your child care license
Every state licenses child care centers, and family child care homes usually need a license once they care for more than a few unrelated children. Expect a home or site inspection, health and safety training, and background checks. Find your state's licensing office
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Run background checks
Licensed programs need background checks, usually including fingerprints, for every adult who works with the children.
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Get general liability insurance
Covers injuries to children in your care. Parents and landlords often ask for it. See options
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Get your EIN
Free from the IRS, online in about 10 minutes. Banks, clients and payroll all ask for it. You never need to pay a service for it. How to get it free
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Open a business bank account
Keeps the company's money separate from yours, which is what protects your LLC. See options
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Set up booking and invoicing
Online booking and automatic invoices get you paid faster. See options
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Payroll and workers' comp before your first hire
Most states require workers' comp once you have employees, and payroll software handles the tax filings. See options
Pick your state
What insurance costs
| Coverage | Median per month |
|---|---|
| General liability | $45 |
| Business owner's policy (BOP) | $83 |
| Workers' compensation | $54 |
| Professional liability | $88 |
Source: Insureon (100,000+ customers), Feb 2026. Overall small-business figures; your trade and state can cost more or less. Your price depends on your work, location and history.