What licenses are required for a daycare business?

Licensing Requirements for Operating a Daycare Business in Arizona

Starting a daycare business in Arizona requires obtaining specific licenses and permits to ensure compliance with state regulations. Proper licensing supports operational compliance, safety, and trust with clients.

Step-by-Step Licensing Process

• Child Care Group Home License: If your daycare serves up to 10 children in a residential setting, you need to apply for a Child Care Group Home License through the Arizona Department of Health Services (ADHS).
• Child Care Center License: For facilities serving more than 10 children or operating in a commercial space, a Child Care Center License from ADHS is required.
• Background Checks: All owners, staff, and volunteers must complete fingerprint clearance and background checks as part of the licensing process.
• Health and Safety Inspections: Your facility will undergo inspections covering sanitation, fire safety, and childproofing before approval.
• Training Requirements: Staff must complete mandatory training in first aid, CPR, child development, and Arizona’s child care regulations.

Additional Operational Considerations

• Business Registration: Register your daycare business with the Arizona Corporation Commission and obtain an Employer Identification Number (EIN) for tax purposes.
• Zoning Compliance: Verify local zoning laws to ensure your daycare location is permitted for child care operations.
• Insurance: Obtain liability insurance and consider additional coverage such as property and workers’ compensation insurance.
• Recordkeeping and Reporting: Maintain detailed records of attendance, staff qualifications, and incident reports as required by ADHS.
• Payroll and Employee Classification: Classify workers correctly as employees or contractors and comply with Arizona payroll tax requirements.

As of 2026, staying current with ADHS updates and local regulations is essential for maintaining your daycare license and operating smoothly in Arizona.