How to Start a Home Daycare in California

You Don't Need a Business License — You Need a State License

This distinction trips up a lot of new providers. Under Senate Bill 234, California law classifies a licensed family child care home as a residential use of property, not a commercial business. Cities and counties are legally prohibited from requiring you to obtain a local business license, business tax certificate, zoning permit, or conditional use permit to operate a home daycare.

What you do need is a Family Child Care Home (FCCH) license from the California Department of Social Services, issued through the Community Care Licensing Division (CCLD). This is a state license, not a municipal one, and it's mandatory if you care for children from more than one non-relative family.

You may still want to form an LLC or sole proprietorship for liability and tax purposes, but that's a business structure decision — it's separate from the licensing requirement, and CDSS doesn't mandate it.

The Licensing Process in Order

California's licensing sequence is rigid. Doing steps out of order causes rejections and duplicate fees. Here's the correct path:

1. Complete the CDSS orientation ($25, or $27.43 online). Choose online, in-person, or live virtual. Online registrants get a 30-day window to finish — miss it and you pay again. The certificate is valid for 12 months.

2. Get trained. You need 16 hours of EMSA-approved health and safety training, current Pediatric CPR/First Aid certification, Mandated Reporter Training, and a TB clearance for every adult in the household.

3. Submit your application packet (Form LIC 279) to your local CCLD Regional Office. The fee is $73 for a Small FCCH (up to 8 children) or $140 for a Large FCCH (up to 14 children).

4. Initiate background checks. After receiving your CDSS welcome letter with your facility identification number, every adult aged 18+ living in your home must be fingerprinted through Live Scan (Form LIC 9163). Submitting without the facility number means the check is rejected and you pay all fees twice.

5. Pass the home inspection. A Licensing Program Analyst visits to evaluate your home against Title 22 safety standards — poison storage, pool barriers, stair gates, firearm locks, smoke detectors, exit routes.

6. Receive your license and begin enrolling children.

What It Actually Costs to Get Started

The licensing fees themselves are modest — $25 for orientation plus $73 or $140 for the application. But total startup costs run higher when you account for everything:

• Live Scan fingerprinting: $25-$45 per person in rolling fees, plus DOJ, FBI, and CACI processing fees for each adult in the home
• Training: EMSA health and safety courses typically cost $50-$150; CPR/First Aid certification runs $40-$80
• Liability insurance: A dedicated family child care liability policy typically costs $300-$600 per year for a small operation
• Home safety modifications: Outlet covers, cabinet locks, stair gates, pool fencing, fire extinguishers, and smoke/CO detectors — budget $200-$1,000+ depending on your home's current state
• Equipment and supplies: Age-appropriate furniture, toys, rest mats, and feeding supplies

Most providers spend between $1,500 and $4,000 total to get from orientation to their first enrolled child. The licensing fees are the smallest part of that number.

The Business Side That SB 234 Doesn't Cover

SB 234 protects you from local government interference with your right to operate, but it doesn't handle the business infrastructure you'll want in place before opening.

Insurance. California doesn't strictly require liability insurance for home daycares, but operating without it is risky. If you don't carry a policy (minimum $300,000 is standard), CDSS requires every parent to sign Form LIC 282 acknowledging the lack of coverage. Most landlords require proof of insurance regardless of what the state says.

Record keeping. CDSS expects you to maintain children's health records, emergency contacts, signed parent disclosures, attendance logs, incident reports, and training certificates. Since January 2026, Assembly Bill 495 also requires family preparedness documentation for children whose parents could face sudden absence due to immigration enforcement or other crises.

Subsidy enrollment. If you want to accept families using CalWORKs vouchers or the California Alternative Payment Program (CAPP), you'll need a provider agreement with your local Alternative Payment agency. Federal CCDF rules require verifiable, date-stamped attendance tracking — incomplete sign-in sheets trigger audit citations and can result in retroactive payment clawbacks.

Food program. To receive federal meal reimbursements through CACFP, you must contract with a CACFP Sponsoring Organization. This is separate from your CDSS license and doesn't require a separate food permit — your daycare kitchen is not subject to county health department inspections unless you're running a separate cottage food business.

Your Rights as a Renter

SB 234 is especially important if you rent your home. Your landlord cannot refuse to rent to you, evict you, or threaten eviction because you operate or plan to operate a licensed family child care home. This applies to apartments, townhouses, duplexes, and condos — not just single-family houses.

You are required to notify your landlord in writing that you plan to operate an FCCH. However, your landlord cannot block it. The only situation where written landlord consent (Form LIC 9149) is required is if you want to operate at expanded capacity — more than six children for a Small FCCH or more than 12 for a Large.

If your landlord tries to impose restrictions, increase your rent selectively, or demand additional security deposits beyond the limits in Civil Code Section 1950.5, those actions may violate state law. The Child Care Law Center and Public Counsel provide free information on tenant-provider rights.

For a complete walkthrough of every form, inspection requirement, and deadline in the correct filing order, the California Home Daycare Licensing Guide covers the full process from orientation through your first enrolled child.

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