To start a daycare business in Florida, you need a child care license from the Department of Children and Families (DCF), Level 2 background screening for everyone who works with the children, and a home or facility that passes inspection. Form your LLC first, since licensing takes 60-90 days after you apply. Expect a home-based daycare to cost roughly $7,000-$25,000 to open and a center $55,000-$185,000.
Child care is one of the most heavily regulated businesses in Florida, and parents are glad it is. Most of the work is meeting the rules before you open.
What type of daycare are you starting?
Florida licenses three kinds of child care operation, and the requirements scale with size:
| Type | Where it runs | Capacity | Tradeoff |
|---|---|---|---|
| Family day care home | Your own residence | Up to 10 children, counting your own children under 13 | Low startup cost and you work from home, but income is capped |
| Large family child care home | A residence | 6-12 children, depending on staff | More capacity, but more rules and you need staff |
| Child care center | A commercial facility | Set by facility size and compliance, not license type | Scales and earns the most, but costs the most and needs commercial space |
Why form an LLC before you apply?
You’re responsible for other people’s children, and if an incident leads to a lawsuit, an LLC helps keep your personal assets out of it. It also gives parents a real business to write tuition checks to, lets you deduct facility costs, equipment, supplies and operating expenses, and makes it easier to add a location or sell later.
- Choose a name. Check it on Sunbiz, the Florida Division of Corporations site. It must include “LLC.” You want something warm and child-friendly that still sounds professional and is available as a domain.
- File Articles of Organization. Online through Sunbiz for $125. Processing takes 2-3 business days.
- Write an operating agreement. It matters most if you have a partner.
- Get your EIN. It’s free from the IRS at irs.gov.
- Open a business bank account. All tuition and expenses run through it.
How do you get a daycare license in Florida?
DCF licenses child care facilities. The process runs in this order:
- Finish the pre-application requirements. Complete the approved 40-hour introductory child care training, get CPR and first aid certified, gather the required health screening documents, and complete Level 2 background screening.
- Attend a DCF licensing orientation. DCF requires it.
- Apply through the DCF Child Care Licensing website. You’ll send the application form, facility information, background screening documents, training certificates and the fee.
- Pass inspections. DCF checks the facility, health and safety, fire safety, equipment and materials, and staff qualifications.
- Receive your license. Processing typically takes 60-90 days from when you submit the application.
| License type | Initial fee | Annual renewal |
|---|---|---|
| Family day care home | $25 | $10 |
| Large family child care home | $50 | $25 |
| Child care center | $100-$300, based on capacity | $50-$150 |
Sign the lease or start renovations only after you’ve confirmed zoning and walked through the facility rules below. A space that can’t meet the square footage or the fencing requirement is an expensive mistake.
Who needs a background screening?
Everyone. Florida requires Level 2 screening, its most thorough level, for owners, operators, directors, all staff, and substitutes or volunteers with unsupervised access. For home-based care, household members are screened too.
Level 2 includes an FBI fingerprint check, a Florida Department of Law Enforcement check, a local criminal records check, and sex offender and abuse registry checks. It costs approximately $40-$75 per person.
Certain criminal history disqualifies a person from child care work. Florida Statutes Chapter 435 has the full list, and DCF provides guidance on exemption requests in some situations.
What does the facility need?
For a child care center, the numbers to know are a minimum of 35 square feet of usable indoor floor space per child and 45 square feet of outdoor play area per child. Outdoor play areas must be fenced at least 4 feet high.
You’ll also need fire inspection and health department approval, working smoke detectors and fire extinguishers, child-accessible toilets and sinks, sanitary diaper stations, proper food handling facilities if you serve meals, controlled entry, safe storage for hazardous materials, cabinet latches and outlet covers, and age-appropriate furniture, toys and nap mats or cots.
Home-based programs follow adapted versions of these rules: safe sleep spaces, a fenced outdoor play area, smoke detectors, fire extinguishers, a clean and hazard-free home, and pool barriers if you have a pool.
Before you commit to any location, confirm that child care is a permitted use in the zoning district, check parking and sign rules, and for a home daycare, read your HOA restrictions.
What are the staffing rules?
A center director needs one of the following: a Child Development Associate (CDA) credential or equivalent plus 1 year of experience with children, an associate’s or bachelor’s degree in early childhood education or a related field, or Florida Department of Education certification in early childhood education.
All child care staff must complete the 40-hour introductory training within 90 days of hire, take 10 hours of in-service training every year, keep CPR and first aid current, and pass Level 2 screening.
Florida’s minimum staff-to-child ratios:
| Age group | Ratio |
|---|---|
| Birth to 1 year | 1:4 |
| 1 year | 1:6 |
| 2 years | 1:11 |
| 3 years | 1:15 |
| 4 years | 1:20 |
| 5 years and older | 1:25 |
These are minimums, and many parents expect lower ratios. Ratios also drive your budget more than anything else, because they decide how many people you pay. Child care has high turnover, so plan for ongoing hiring and training from the start.
What insurance does a daycare need?
General liability covers injury and property damage claims, typically at $1,000,000 per occurrence for $2,000-$5,000 a year. Professional liability covers claims of supervision failures or professional negligence and runs $1,000-$3,000 a year.
Abuse and molestation coverage is specific coverage for allegations of abuse, and a daycare shouldn’t open without it.
Workers’ compensation is required in Florida once you have 4 or more employees. Property insurance, business interruption coverage (for lost income during a temporary closure) and commercial auto (if you provide transportation) round it out. Budget $5,000-$15,000 a year in total, depending on capacity and services.
How much can a Florida daycare earn?
Rates vary by region and type of care. Miami, Orlando and Tampa typically command higher rates.
| Age group | Weekly rate range |
|---|---|
| Infant (0-12 months) | $200-$400 |
| Toddler (1-2 years) | $175-$350 |
| Preschool (3-4 years) | $150-$300 |
| School-age (before/after school) | $75-$175 |
Here’s what that means for a 50-child center at an average of $200 a week. Full enrollment brings in $10,000 a week. At 90% occupancy over a year, that’s $468,000 in revenue.
That number shrinks fast. Staff wages and benefits usually take 50-70% of revenue, facility costs 10-15%, food and supplies 5-10%, insurance 3-5%, administration 3-5% and marketing 2-5%. Margins are thin, and they depend on staying near capacity, staffing to ratio without overstaffing, and keeping parents happy enough to stay.
Before- and after-school programs, summer camps, extended-hours fees and paid meals or enrichment can add to that.
Should you take School Readiness and VPK children?
Usually, yes. Both programs bring state money and steadier enrollment.
School Readiness is a state-funded program that helps eligible families pay for child care. As a School Readiness provider, you get guaranteed payment from the state and serve families who couldn’t otherwise afford care. In return, you meet quality standards beyond basic licensing, complete extra training, and accept School Readiness payment rates, which are typically below private rates.
Voluntary Prekindergarten (VPK) is Florida’s free pre-K program for 4-year-olds. Providers who meet VPK standards, employ VPK-credentialed teachers and follow VPK curriculum standards receive state funding. VPK covers only 3 hours, so you can charge wrap-around fees for the rest of the day.
What do you have to keep up with after opening?
Your license renews annually. You’ll submit a renewal application, updated staff information, current insurance certificates and the renewal fee.
DCF inspects routinely (announced and unannounced), responds to complaints, and makes technical assistance visits. Violations can lead to fines, probation or license revocation.
Each staff member needs 10 hours of in-service training a year plus CPR and first aid recertification. Keep child enrollment and health records, daily attendance, medication logs, incident reports and emergency contacts up to date.
Your Florida LLC annual report is due by May 1 each year, with a $138.75 fee.
How much does it cost to start a daycare business in Florida?
For a child care center:
| Expense | Estimated cost |
|---|---|
| LLC formation | $125 |
| License application | $100-$300 |
| Background screenings | $200-$500 |
| Training and certifications | $300-$800 |
| Facility deposit and first month | $5,000-$20,000 |
| Facility build-out/renovation | $10,000-$50,000 |
| Furniture and equipment | $10,000-$30,000 |
| Curriculum materials and toys | $2,000-$10,000 |
| Insurance (annual) | $5,000-$15,000 |
| Marketing | $2,000-$5,000 |
| Working capital | $20,000-$50,000 |
| Total | $55,000-$185,000 |
For a home-based family daycare:
| Expense | Estimated cost |
|---|---|
| LLC formation | $125 |
| License application | $25-$50 |
| Background screenings | $40-$150 |
| Training and certifications | $300-$500 |
| Home modifications | $1,000-$10,000 |
| Furniture and equipment | $2,000-$5,000 |
| Insurance (annual) | $1,000-$3,000 |
| Marketing | $500-$1,500 |
| Working capital | $2,000-$5,000 |
| Total | $7,000-$25,000 |
Don’t skimp on working capital. Plan for 3-6 months of building enrollment while payroll has to meet ratios from the first day.
Mistakes new daycare owners make
Most come down to money and location: underestimating payroll, slipping on ratios (violations are serious), and picking a site without checking demographics, local demand and competing providers.
Start with the paperwork that’s fastest
The DCF license is the long pole, so get the quick parts done while you’re doing the training and finding a space. IncCraft can file your Articles of Organization, get your EIN and act as your registered agent, so your LLC is ready by the time you sit down to the DCF application.