Personal care and services · LLC guide · updated
How to start an LLC for a daycare or child care business
Child care providers are responsible for other people's children for hours every day. Injuries, illness and supervision claims are serious, and states license and inspect child care closely. An LLC holds the license, the lease and the insurance, and keeps a claim with the business.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- Child care license
- Background checks
- Safe sleep compliance
- CACFP option
Daycare or Child Care Business businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 624410) and U.S. Census Bureau, Nonemployer Statistics 2022 (NAICS 62441), the latest U.S. totals.
Why daycare or child care business owners form an LLC
Child injuries
Falls, playground accidents and supervision claims.
Infant sleep
Unsafe sleep practices are linked to infant deaths; federal and state rules apply.
Abuse allegations
Background checks and policies are your first protection.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a daycare or child care business
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- General liability with abuse coverage
Many policies exclude abuse unless added.
- Professional liability
Covers supervision claims.
- Workers' compensation
For staff.
Taxes
- Home daycare deductions
Home providers can deduct part of their home expenses using the time-space percentage. IRS / agency page
- Food program income
CACFP reimbursements are generally taxable income, with offsetting food costs.
Most homeowners policies exclude business use. Get a home daycare policy in the LLC's name before the first child arrives.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a daycare or child care business LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need a license to run a home daycare?
In most states, yes, once you care for more than a few unrelated children.
Can my daycare LLC hold the license?
Usually yes for centers; some states license home providers individually.
What insurance does a daycare need?
General liability including abuse coverage, professional liability, property and workers' comp.
Can my daycare get paid for meals?
Licensed providers may qualify for USDA CACFP reimbursements.
How much does it cost to form an LLC for a daycare or child care business?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my daycare or child care business?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Daycare or Child Care Business LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.