How to Start a Daycare in California: A Complete Guide 

Imagine waking up every day to the laughter of children, knowing you’re not just running a business—you’re shaping young minds and supporting busy families in your community. Starting a daycare in California is your chance to turn your love for childcare into a thriving, heart-centered enterprise.  

But before you open your doors, there’s one crucial step: getting licensed. California has strict (but necessary) rules to ensure every child is safe, nurtured, and given the best possible start. Skip a step, and you could face delays or fines—but with the right roadmap, you’ll breeze through the process and open with confidence.  

‍Childcare Licensing Requirements in California

In California, anyone providing care for children from multiple families must obtain a childcare license. However, exemptions apply for caregivers serving only their relatives or children from a single additional family alongside their own.  

The Child Care Licensing Division (CCLD) under the California Department of Social Services (CDSS) regulates childcare operations statewide. This agency ensures compliance with health, safety, and operational standards to protect children in licensed care environments.  

California issues two primary childcare licenses:  

- Family Child Care Home License (FCCH) Required for in-home daycare providers serving a limited number of children.  

- Child Care Center License (CCC) Necessary for facilities operating in commercial or dedicated childcare spaces. 

Licenses may be obtained by individuals, groups, or institutions, depending on the business structure. Understanding these distinctions is critical for compliance and establishing a legally sound childcare operation.

Eligibility Standards for Family/ in-home Childcare Providers

To operate a family childcare home service in compliance with statutory guidelines, applicants must meet the following licensing requirements:

• Be a minimum of 18 years of age
• Reside permanently within the care-providing premises
• Have no record of criminal convictions
• Present documentation of a tuberculosis screening
• Successfully complete 16 hours of Pediatric Health and Safety coursework through a recognized institution approved by the Emergency Medical Services Authority (EMSA) or an accredited college
• For individuals applying for a large-scale license, prior verifiable experience is required—either as a licensed small-scale childcare operator or as an educator or administrator in a certified child development facility
  

Maximum Enrollment Regulations for In-Home Childcare Settings

The following are the capacity regulations for small and large family childcare home licenses:

Small-Scale Residential Childcare Settings

• May accommodate up to four children under the age of two
• Alternatively, six children are allowed if only three are infants and the remainder are aged over two years
• A special arrangement allows for the inclusion of up to eight minors, limited to two infants and six older children, with two being of school-going age. This setup mandates written authorization from the property owner and formal notification to parents
  

Large-Scale Residential Childcare Settings

• Permits supervision of twelve minors, consisting of no more than four infants and eight toddlers (2 years or older)
• Requires support from an assistant aged no less than 14 years
• In extended configurations, up to 14 children may be present, restricted to three infants and eleven older children. This option also necessitates approval from the landlord and communication to guardians in writing
  
  

Staff Criteria for Licensed Childcare Facilities

For centers delivering early learning programs, the following credentials are necessary:

Center Director

Must possess one of the following qualifications:

• Completion of 12 semester units in child development studies, three units in administration or personnel management, along with four years of classroom leadership in a structured group learning environment
• A degree in child development with three administrative units and two years of practical experience in a licensed early education setting
• A bachelor’s degree in child development, combined with three administrative credits and a minimum of one year teaching
• Valid certification as a Site Supervisor or Program Director
  

Lead Educator

Acceptable qualifications include:

• Twelve academic units in early childhood instruction and at least half a year of hands-on teaching in a licensed learning environment
• Alternatively, six semester units already achieved and ongoing enrollment in a minimum of two additional units until fully credentialed
  

Assistant Educator

• Must be 18 years or older
• Should have completed six units of coursework in early childhood education
• Must hold a high school diploma or currently participate in a recognized Regional Occupational Program (ROP)
  

Capacity Standards for Licensed Childcare Institutions

Child-to-educator ratios differ depending on the age group served:

Infants

• Ratio of one staff member to four infants (1:4)
• For a group of 12, a combination of one lead and two assistants is required (3:12)
  

Toddlers

• Supervised at one caregiver per six toddlers (1:6)
• Two caregivers—one lead and one aide—required for 12 toddlers (2:12)
  

Preschool-Aged Children

• One instructor per 12 children (1:12)
• Two staff for a group of 15 (1 instructor + 1 assistant)
• For 18 children, a fully credentialed educator and an aide are necessary (2:18)
  

School-Age Children

• Maximum of 14 children per educator (1:14)
• With assistance, up to 28 children may be managed by one qualified teacher and one aide (2:28)

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Funding resources for your childcare business

Navigating the licensing phase presents opportunities to explore monetary assistance programs designed to support your childcare enterprise. Unlike loans, grants offer non-repayable financial awards distributed by governmental bodies or philanthropic organizations, making them an advantageous solution for program development and service enhancement.  

These funds can be allocated toward multiple operational needs, including:  

- Facility upgrades and renovations 
- Acquisition of educational materials and play equipment 
- Staff training and certification programs  

Availability and eligibility criteria differ across regions, so thorough investigation of California-specific childcare grants is essential. Identifying suitable programs early allows for strategic planning and maximizes your chances of securing financial backing.  

For current opportunities, consult the California Department of Social Services and local early childhood education networks to discover applicable funding initiatives for your childcare operation.

Start a daycare business in California

Launching a daycare center in Texas begins with selecting the right type of license for your specific business model. It's important to thoroughly review the licensing requirements and follow each step of the application process to ensure compliance and avoid delays. With the right preparation, you'll set a strong foundation for a successful and sustainable childcare program.

As you approach the operational phase, choosing the right childcare management software becomes key. That’s where illumine comes in. Built to support new childcare programs, illumine offers intuitive tools that streamline day-to-day tasks, improve parent communication, and support long-term planning. Whether you're newly licensed or preparing for your grand opening, you can start organizing your program on illumine before welcoming your first child.

Useful Read: How to Open a Daycare in Texas/ Florida

How illumine Can Help You Get Started

Starting and growing a childcare business is a journey, and you don’t have to do it alone. There are state resources, industry networks, and tools like illumine to help make your job easier. 

If you’re looking for a way to simplify operations, streamline compliance, and enhance parent engagement, Book a demo with illumine today and get an up-close look at how we can help you grow your childcare business.