Cost of Starting a Home Daycare in New York

One of the biggest draws of home-based child care in New York is the relatively low barrier to entry compared to opening a commercial center. There are no facility lease costs, no $200 OCFS application fees (those apply to centers only), and the registration itself is free for both Family Day Care and Group Family Day Care. But "low barrier" doesn't mean free, and providers who don't budget for the full list of startup costs end up scrambling mid-process.

Here's what it actually costs, broken down by category.

Licensing and Background Check Fees

The FDC registration and GFDC license carry no state application fee — unlike day care centers, which pay $200 plus a capacity surcharge. But the Comprehensive Background Checks (CBCs) required for every adult in the household are not free:

• Fingerprinting: $75 to $100 per person at an authorized IdentoGO location. This covers both the DCJS state database check and the FBI federal check.
• Per-household cost: A couple with one adult child means three sets of fingerprints — roughly $225 to $300 just for background clearances.

The SCR (Statewide Central Register) and SEL (Staff Exclusion List) checks are processed through FAMS at no additional charge.

Training Costs

• 15-hour preservice course: $50 to $300, depending on the training provider. OCFS offers a training rebate of up to $235 after you receive your registration or license, which significantly offsets or eliminates this cost.
• CPR and First Aid certification: $50 to $100 for an in-person course through the American Red Cross, American Heart Association, or another OCFS-approved provider.
• Foundations in Health and Safety: Free (5-hour online course).

Net 15-hour course costs after the rebate: roughly $0 to $65. Including CPR and First Aid, total training costs are roughly $50 to $165.

Business Entity Formation

While OCFS doesn't require you to form an LLC, most providers do for liability protection. New York LLC costs include:

• Articles of Organization filing: $200 with the Department of State
• Publication requirement: New York is one of the few states that requires LLCs to publish formation notices in two designated newspapers for six consecutive weeks. This cost varies dramatically by county — in New York County (Manhattan), publication can run $1,500 to $2,500. In many upstate counties, it's $200 to $500. This is the single most variable cost in the entire startup budget.
• Certificate of Publication filing: $50

Total LLC formation: $450 to $2,750, depending heavily on your county.

Some providers skip the LLC entirely and operate as sole proprietors to avoid these costs. That's legally permissible but leaves personal assets exposed if a liability claim exceeds insurance coverage.

Insurance

OCFS requires FDC and GFDC applicants to show "intent to provide" liability insurance — not proof of active coverage at application time. But operating without dedicated commercial liability insurance is a serious financial risk. Standard homeowner's or renter's insurance policies contain exclusions for business operations, meaning a child injury claim during daycare hours would likely be denied.

• Commercial general liability: $800 to $2,000 annually for home-based child care, or as little as $8 to $15 per month when added as a commercial endorsement on an existing homeowner's policy
• Workers' compensation (required for GFDC with an assistant): Varies by payroll and classification, typically $500 to $1,500 annually for a single part-time assistant
• NYS disability and paid family leave insurance (required for GFDC employers): Additional cost tied to payroll

Recommended coverage: at least $500,000 per occurrence and $1,000,000 aggregate.

Home Safety and Equipment

The physical setup costs depend entirely on your home's current condition. Common expenses include:

• Smoke detectors and CO detectors: $20 to $50 per unit, multiple floors
• Fire extinguishers (Class ABC): $30 to $50 each, plus annual inspection ($15 to $25)
• Outlet covers, cabinet locks, window guards: $50 to $150 total
• Diapering station (if serving infants/toddlers): $80 to $200
• Stairway gates: $30 to $80 each
• Cribs/pack-n-plays for nap time: $50 to $150 each, depending on quantity
• Lead paint testing (pre-1978 homes): $200 to $500 for professional inspection
• Radon testing (EPA Zone 1 counties): $15 to $30 for DIY canister from NYS DOH; professional testing $150 to $300

Total home safety setup: $300 to $1,500, depending on your starting point.

The Realistic Budget Range

The wide range is driven almost entirely by two variables: your county's LLC publication costs and whether your home needs significant safety upgrades. A provider in a rural upstate county with a home that's already well-maintained might get started for under $2,000. A provider forming an LLC in Manhattan with a pre-1978 home needing lead remediation could spend $5,000 or more before enrolling a single child.

Costs You Can Defer

Not everything needs to be paid upfront:

• LLC formation can wait until after you've confirmed your home passes inspection and your background checks clear — there's no point spending $2,000 on an LLC for a program that can't open
• Furniture and play equipment beyond basic safety items can be added gradually as revenue comes in
• CCAP subsidy enrollment is free and can be completed after licensure if you want to accept vouchers

The costs you can't defer: fingerprinting, training, and safety equipment. These are prerequisites for the application, and delays in any of them extend your timeline.

The New York Home Daycare Licensing Guide includes a startup cost worksheet with pre-filled estimates for each category, helping you build a realistic budget before you commit.

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