How to Start a Daycare in Texas

Thinking of starting a childcare center in Texas? Congratulations on taking your first step! Starting a childcare business in Texas is an exciting and rewarding milestone, and we’re here to help you navigate the process. 

Taking on this important responsibility in your community is no small task, but with the right resources and guidance, you’ll be set up for long-term success. This comprehensive guide covers everything you need to know—from understanding your licensing options and choosing the best fit for your business, to navigating the application and licensing process as well as meeting ongoing compliance requirements. With this information, you can move forward with confidence, allowing you to focus on what truly matters: providing exceptional care and making a lasting difference for the families and children you serve.

Step 1: Understanding Childcare Licensing Options in Texas

In Texas, operating a childcare business typically requires a daycare license or permit. The Texas Health and Human Services (HHS) oversees these requirements, ensuring that all childcare providers—whether you operate a daycare center or a home daycare—adhere to strict health and safety standards.

The Texas Health and Human Resources offers several childcare licensing options for early childhood education programs, each tailored to different types of care and facilities. Below is an overview to help you identify the right license for your childcare business.

Licensed Child Care Center

A licensed child care center provides care and supervision for seven or more children aged 13 or younger. Key details include:

• Care duration: At least two hours but less than 24 hours per day, three or more days a week.
• Location: Outside the license holder’s home.
• Inspections: Must meet minimum standards for child-care centers and is subject to at least one unannounced monitoring inspection by Child Care Regulation (CCR) annually.

Licensed Before or After-School Program

These programs offer care and supervision for children from pre-kindergarten through sixth grade. Highlights include:

• Care duration: At least two hours per day, three or more days a week, either before or after school and during school holidays.
• Inspections: Must meet minimum standards for school-age programs and receive at least one unannounced monitoring inspection by CCR annually.

Licensed School-Age Program

This program provides care for school-age children during times when school is not in session, including summer breaks and holidays. Key points:

• Care duration: At least two hours per day, three or more days a week.
• Inspections: Must adhere to minimum standards and undergo annual unannounced inspections.

Licensed Child Care Home

Licensed child-care homes offer care for 7–12 children (ages 13 or younger) in the caregiver’s home. Additional details include:

• Care duration: At least two hours but less than 24 hours per day, for three or more days a week.
• Inspections: All child care home providers must comply with minimum standards for licensed child-care homes and are subject to at least one unannounced inspection annually.

Registered Child Care Home

Registered child-care homes provide care in the caregiver’s own home with the following specifics:

• Capacity: In-home care for up to six unrelated children during school hours and up to six additional school-age children after school (maximum of 12 children, including the caregiver’s own children).
• Care duration: At least four hours a day, three or more days a week, or 40 or more days in a year.
• Inspections: Must meet minimum standards and is inspected every one to two years.

Listed Family Home

Listed family homes are designed for smaller childcare operations. Here’s what to know:

• Capacity: Care for up to three unrelated children.
• Care duration: At least four hours a day, three or more days a week, or 40 or more days in a year.
• Inspections: Not routinely inspected unless there are reports of violations, abuse, or exceeding the allowable number of children.

Each option is designed to support different types of childcare programs while maintaining the health, safety, and well-being of all staff and children. Choosing the right license depends on the number of children you plan to care for, the location, and the type of childcare services you wish to provide.

Step 2: Understand Licensing Requirements and Ratios

Licensing Requirements

Each license type has unique qualifications and training requirements:

• Licensed and Registered Child Care Homes:
  Caregivers must be at least 21 years old, meet education requirements, hold pediatric first aid and CPR certification, and pass background checks.
• Listed Family Homes:
  Caregivers must be at least 18 years old and complete background checks.
• Licensed Child Care Centers:
  Center-based providers must meet additional educational standards and maintain liability insurance.

Understanding Ratios

One of the key factors in ensuring a safe and well-managed childcare environment is understanding the caregiver-to-child ratios. These ratios define the maximum number of children a caregiver can supervise, depending on the children’s age group. It’s important to note that the ratios below apply strictly to licensed childcare centers, and childcare owners must review the minimum requirements for the ratios within their specific license, as these may vary based on the services they offer and the type of license they have obtained.

Here’s a breakdown of the caregiver-to-child ratios for Texas Child Care Centers licensed for an enrollment of 13 or more children, based on the children’s age:

Caregiver-to-Child Ratios:

• 0 – 11 months: 1 caregiver to 4 children
• 12 – 17 months: 1 caregiver to 5 children
• 18 – 23 months: 1 caregiver to 9 children
• 2 years: 1 caregiver to 11 children
• 3 years: 1 caregiver to 15 children
• 4 years: 1 caregiver to 18 children
• 5 years: 1 caregiver to 22 children
• 6-8 years: 1 caregiver to 26 children
• 9-13 years: 1 caregiver to 26 children

Maximum Group Size: In addition to the caregiver-to-child ratio, there is also a maximum group size, which is the total number of children that can be in a classroom or care setting under the supervision of one or more caregivers. The group size varies based on the age of the children, and the number of caregivers may increase accordingly.

• 0 – 11 months: Maximum group size of 10 children (with 2 caregivers)
• 12 – 17 months: Maximum group size of 13 children (with 2 caregivers)
• 18 – 23 months: Maximum group size of 18 children (with 2 caregivers)
• 2 years: Maximum group size of 22 children (with 2 caregivers)
• 3 years: Maximum group size of 30 children (with 2 caregivers)
• 4 years: Maximum group size of 35 children (with 2 caregivers)
• 5 years: Maximum group size of 35 children (with 2 caregivers)
• 6-8 years: Maximum group size of 35 children (with 2 caregivers)
• 9 – 13 years: Maximum group size of 35 children (with 2 caregivers)

By understanding and adhering to these ratios, childcare providers can ensure that children receive the appropriate level of attention and care.

Step 3: Learn the Application Process

Here’s how to become a licensed childcare provider in Texas:

1. Attend Orientation

Register for an orientation class to learn the application process and receive essential resources, including contact details for Child Care Regulation (CCR) staff. Attending a pre-application class will help you in understanding your next steps in building a business plan and understanding the right license for your childcare services.

2. Review Licensing Standards

Familiarize yourself with the Minimum Standards for Child-Care Operations to ensure your facility is safe and compliant. Information packets are also shared at all orientation sessions. Key requirements include:

• Background checks for all staff.
• Compliance with zoning and building codes.
• Meeting liability insurance standards.

3. Submit Your License Application

To apply for a daycare business license to operate a child day care facility, you will need to complete and submit the following forms. These forms are designed to provide necessary information about your operation, governing body, and key personnel to ensure compliance with child care regulations. Below is a list of required documents to submit as part of your application process:

• Form 2910, Application for a License or Certification to Operate a Child Day Care Facility
• Form 2948, Plan of Operation for Licensed Center and Home Operations
• Form 2911, Child Care Regulation Governing Body/Director Designation
• Form 2760, Controlling Person – Child Care Regulation

4. Set Up a CCR Account

Once your application is accepted, create an online account to manage your childcare provider information, track applications, and receive updates.

Step 4: Maintain Compliance

To keep your childcare business running smoothly, stay updated on renewal requirements and regulations:

• Licensed Homes and Centers: Renew every two years.
• Registered Homes: Renew every two years.
• Listed Family Homes: Renew annually with a $20 fee.

Regular inspections ensure adherence to standards. Your compliance history will be publicly available on the Search Texas Child Care page.

Step 5: Explore Funding Opportunities

The State of Texas offers funding resources to support new and expanding childcare businesses. These funds can cover costs like equipment, facility upgrades, or staff training. Look into grants such as:

• Texas Rising Star Program
• Child and Adult Care Food Program

Additional Resources

These tools and programs can guide you on your childcare journey:

• Roadmap to Success for Newly Licensed/Registered Child Care Programs (PDF).
• CCR Background Checks Portal.

For personalized assistance, contact your local Child Care Regulation office.

Starting a childcare business in Texas is not only a rewarding opportunity but also a meaningful step toward making a lasting impact on the lives of children and families. By providing a safe, nurturing, and educational environment, you’ll play a crucial role in supporting children’s growth and development during their formative years. With careful planning, a clear understanding of licensing requirements, and a commitment to meeting health and safety standards, you can build a successful and thriving childcare operation that truly serves your community.

Build Your Business with Lillio

Starting a child care business in Texas is an exciting journey, and after successfully navigating the state’s licensing process, the next step is ensuring you have the right tools to manage and grow your program. Lillio is here to support you at every stage, offering comprehensive child care management software designed to streamline operations, foster parent engagement, and keep you compliant with state regulations.

Trusted by thousands of child care centers, Lillio provides the essential tools to help you create and sustain a high-quality program.

Opening a new child care program in Texas? You don’t have to do it alone. Click here to discover how Lillio can make your journey smoother!