How to Start a Home Daycare in Texas: The Step-by-Step Licensing Process

Starting a home daycare in Texas is not complicated in principle — there are about six phases between "I want to do this" and "I am legally accepting children" — but it is easy to get tripped up by doing things out of order. HHSC will not process your application without orientation, will not schedule your inspection without cleared background checks, and will not issue your permit without local zoning sign-off. Sequencing matters more than any individual step.

Here is the process from start to finish, in the order Texas actually requires it.

Phase 1: Choose Your Permit Type

Texas HHSC offers three permit categories for home-based care, and the one you pick determines your maximum capacity, regulatory burden, and qualifications:

• Listed Family Home: up to 3 unrelated children, minimum age 18, inspections only on complaint, $20 application fee
• Registered Child Care Home: up to 6 unrelated children (12 total including your own), minimum age 21, high school diploma required, unannounced inspections every 1–2 years, $35 fee
• Licensed Child Care Home: 7–12 children, same baseline as Registered plus Child Day Care Director credentials, annual inspections, $35 application fee, $35 initial permit fee, and $35 annual renewal plus $1 per child of capacity

Most first-time home daycare operators target either Registered or Licensed, depending on whether they plan to operate solo (Registered caps at 6 unrelated) or with an assistant caregiver (Licensed allows 7–12 total).

Phase 2: Verify Your Property

Before you invest in training or applications, confirm your home is legally eligible. Three layers to check:

Zoning: Contact your city's planning and zoning department. Senate Bill 599 (effective May 2025) prevents cities from imposing health and safety requirements beyond HHSC minimums, but cities still control land-use classifications. Austin allows up to 6 children by right in most residential districts. Dallas allows up to 10 as an accessory use. Plano caps home daycares at 8 children regardless of your state permit.

Deed restrictions and HOAs: SB 599 does not override private contracts. If your subdivision's deed restrictions prohibit home businesses, a state permit will not protect you. Review your property deed and HOA bylaws before proceeding.

Lease terms: If you rent, most standard residential leases prohibit home businesses. You need a written lease addendum from your landlord permitting a family child care home. Proceeding without one exposes you to accelerated eviction — Texas's 2026 property code updates make eviction proceedings faster than ever for lease violations.

Phase 3: Complete Training Prerequisites

With your property confirmed, knock out the education requirements:

1. HHSC Child Care Home Orientation: Register through the HHSC CCR portal or your regional office. This is a mandatory prerequisite for your application — you cannot submit without the orientation certificate.
2. Pediatric CPR and First Aid: Get certified before you apply. At least one certified caregiver must be on-site whenever children are present.
3. Pre-service training: 24 clock hours total. At least 8 must be done before you can count in child-to-caregiver ratios; the remaining 16 must be completed within 90 days of starting operations.
4. Pre-licensure computer-based training: Required for Registered and Licensed home applicants through the HHSC training portal.

Phase 4: Set Up Your Business Entity and Apply

Formalize your business structure (sole proprietorship or LLC — an LLC protects personal assets) and obtain a Federal EIN from the IRS. Then create your account on the HHSC Child Care Regulation Provider portal.

Upload the required forms:

• Registered homes: Form 2919 (Registration Permit Request), Form 2760 (Controlling Person Designation), Form 2971 (Background Check)
• Licensed homes: Form 2910 (Application for a License), Form 2948 (Plan of Operation), Form 2911 (Governing Body/Director Designation), Form 2760

Pay the non-refundable application fee through the portal.

Phase 5: Background Checks and Home Preparation

Run these in parallel — background checks take time, and you can prepare the physical space while they process.

Background checks: Submit requests through the HHSC portal for yourself, any employees or volunteers, and every household member aged 14 or older. Each person pays a $2 HHSC administrative fee. Each person who needs fingerprinting schedules an appointment at an IdentoGO location and pays roughly $45–$60 at the vendor. If anyone has lived outside Texas in the past five years, out-of-state checks from each prior state of residence are required.

Home preparation: Install 4-foot fencing around outdoor play areas with self-closing, self-latching gates. Childproof all electrical outlets. Lock all cabinets containing cleaning supplies, medications, or hazardous materials. Set up compliant cribs for infants (firm, flat mattresses, 3-foot spacing, no loose bedding). Measure your indoor play space — you need at least 30 square feet of usable space per child.

Insurance (Registered and Licensed homes): Secure a commercial general liability policy with at least $300,000 per occurrence, covering professional liability and child abuse and molestation.

Phase 6: Inspection and Permit Issuance

For Registered and Licensed homes, once background checks clear and your application is accepted, HHSC assigns a licensing analyst to your case. The analyst contacts you to schedule the pre-licensing inspection.

During the walk-through for a Registered or Licensed home, the analyst measures your space, checks safety equipment (smoke detectors, fire extinguishers, first-aid kits), reviews all on-site records (child enrollment forms, training documentation, immunization records, your emergency preparedness plan), and evaluates your compliance with Chapter 747 Minimum Standards.

If deficiencies are cited, you fix them and submit proof within the analyst's specified timeframe. Once everything checks out, HHSC issues an Initial Permit. For Licensed homes, this is valid for 12 months before a full two-year license is granted.

The entire process from orientation to permit typically takes three to six months, depending on how quickly background checks process and how prepared your home is for inspection.

What Comes After the Permit

With your permit in hand, you can legally begin accepting children. From there, many operators pursue Texas Rising Star certification to accept state-subsidized families through the TWC Child Care Services program — a significant revenue stream, especially in communities with high subsidy eligibility.

If you want every form, fee, and deadline organized into a single reference with capacity-planning worksheets and inspection checklists, the Texas Home Daycare License Guide covers the complete process from property assessment through your first enrollment.

See more Texas guides →