Memphis Home Daycare License: Shelby County Zoning and Business Permits

Two Layers of Licensing in Memphis

Opening a home daycare in Memphis means navigating both Tennessee's state licensing process through TDHS and Shelby County's local zoning and business registration requirements. The state process is identical across Tennessee — 10-step pre-licensure workflow, background screenings, fire inspection, measuring visit — but Memphis has local rules that add specific steps.

Shelby County Zoning and the Unified Development Code

Memphis and Shelby County share a Unified Development Code (UDC) but maintain separate city and county governments. All planning and zoning approvals go through the Memphis Division of Planning and Development using the Develop 901 Citizen Portal.

The local zoning picture has been contentious. Historically, the Memphis/Shelby County UDC allowed a "Family Day Care" (5–7 children) as a by-right residential use with no public notice requirement. More recently, Shelby County proposed ordinances to eliminate the Family Day Care category entirely, reclassifying all operations with 5 to 12 children under "Group Day Care" — which requires a formal Special Use Permit (SUP) process and neighbor notification.

How State Preemption Applies

Tennessee's Child Care Red Tape Reduction Act (Public Chapter 980, fully effective July 1, 2026) preempts local zoning restrictions for licensed family child care homes. Under this law, local authorities must treat licensed family child care homes in occupied residential dwellings as standard residential properties.

If you're opening a family child care home (5–7 unrelated children), the state preemption should shield you from any local attempt to require a Special Use Permit. Keep documentation of the enacted statute ready when working with the Develop 901 portal or meeting with Shelby County planners.

Group child care homes (8–12 children) remain subject to the full local zoning process.

Memphis Home Business Rules

Memphis zoning regulations require home occupations to remain incidental to the residential use. Local rules limit business activities to 25% of the total floor area. Memphis also prohibits home business signage and requires all business materials to be stored entirely within the dwelling.

For state-licensed family child care homes, the Public Chapter 980 / SB 2509 preemption overrides these floor-area and signage limits. But understanding the local framework helps you anticipate questions from neighbors or local code enforcement.

Shelby County Business License

You need a Privilege License from either the Memphis Finance Division (within city limits) or the Shelby County Clerk (unincorporated areas). The annual fee is $15 for minimal activity. This is a local business registration separate from your TDHS state license.

Fire Inspections in Memphis

Fire inspections are managed by Memphis Fire Services (within city limits) or the Shelby County Rural Fire Department (unincorporated areas). The state-required fire safety inspection is routed through your TDHS Program Specialist to the State Fire Marshal's Office.

Since April 2025, family child care homes can meet the residential-focused Appendix AM of the 2021 International Residential Code. This means standard residential fire safety equipment — smoke alarms on every level, carbon monoxide detectors near sleeping areas, a fire extinguisher in the kitchen — without commercial mandates like voice evacuation systems.

Practical Steps for Memphis Providers

1. Contact the TDHS Pre-Licensure Unit to begin the state process
2. Complete the 8-hour virtual orientation and 2-day Small Business Academy
3. Check your property's zoning through the Develop 901 portal
4. Obtain your Privilege License ($15) from the Memphis Finance Division or Shelby County Clerk
5. Complete IdentoGO fingerprinting for all household members 15 and older
6. Schedule your TDHS measuring visit and fire inspection
7. Pass both walk-throughs and receive your provisional license

The Tennessee Home Daycare Licensing Guide covers the complete state and local process, including a pre-audit worksheet to check your home's usable space before the TDHS measuring visit.

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