What licenses are required for a daycare business?

Licensing Requirements for Daycare Businesses in Minnesota

Operating a daycare business in Minnesota requires obtaining specific licenses to ensure compliance with state regulations. These licenses help maintain safety, health, and quality standards for child care services.

Key Licensing Steps for Minnesota Daycare Operations

• Child Care Center License: If your daycare cares for more than 10 children, you must obtain a Child Care Center License from the Minnesota Department of Human Services (DHS).
• Family Child Care License: For daycare services caring for up to 10 children in a home setting, a Family Child Care License is required.
• Background Studies and Training: All daycare providers and staff must complete background checks and required training, including CPR and first aid, as mandated by DHS.
• Fire and Safety Inspections: Your facility must pass inspections by local fire and health departments to meet safety and sanitation standards.
• Local Zoning Compliance: Verify that your daycare location complies with local zoning laws and obtain any necessary permits from the city or county.

Additional Operational Considerations

• Business Registration: Register your daycare business with the Minnesota Secretary of State for legal operation and tax purposes.
• Insurance: Secure liability insurance to protect your business and meet state requirements.
• Recordkeeping: Maintain detailed records of attendance, staff credentials, and compliance documents as part of ongoing reporting requirements.
• Payroll and Employee Classification: Properly classify employees and manage payroll in compliance with Minnesota labor laws.
• Tax Registration: Register for state and local taxes, including sales tax if applicable, and understand your reporting obligations.

As of 2026, these licensing and operational steps are essential to legally run a daycare business in Minnesota. Staying updated with the Minnesota Department of Human Services and local agencies will ensure continued compliance.