What licenses are required for a daycare business?

Licensing Requirements for Daycare Businesses in Indiana

Operating a daycare in Indiana requires obtaining specific licenses and permits to ensure compliance with state regulations and provide a safe environment for children.

Key Licenses and Permits

• Child Care Center License: Required for facilities caring for seven or more children unrelated to the provider. This license is issued by the Indiana Family and Social Services Administration (FSSA).
• Child Care Home License: Needed if caring for fewer than seven children in a home setting. This also falls under FSSA regulation.
• Health and Safety Inspections: Daycare providers must pass health, fire, and safety inspections to meet state standards. Coordination with local fire departments and health agencies is essential.
• Background Checks: All staff and household members aged 18 and older must undergo criminal background checks and child abuse clearances as part of licensing.

Operational Considerations

• Business Registration: Register your daycare business with the Indiana Secretary of State and obtain an Employer Identification Number (EIN) for tax and payroll purposes.
• Insurance: Secure liability insurance tailored to childcare operations to protect your business and comply with licensing requirements.
• Recordkeeping: Maintain detailed records of attendance, staff qualifications, training, and incident reports to meet compliance and reporting standards.
• Staffing and Employee Classification: Ensure proper classification of employees versus contractors and adhere to Indiana labor laws regarding wages and working hours.

As of 2026, always verify current requirements with the Indiana Family and Social Services Administration and local authorities to maintain compliance and operational readiness.