Michigan Daycare License Cost

The State Application Fee

The licensing fee itself is the smallest line item. Family child care homes (1–6 children) pay a $50 non-refundable application fee through the CCHIRP portal. Group child care homes (7–12 children) pay $100. Both are paid by credit or debit card at the time of application.

Renewal fees are also modest: $25 every two years for family homes, $50 for group homes.

Background Check Costs

This is where the total starts climbing, because the cost scales with your household size.

Every adult aged 18 and older who lives in your home must be fingerprinted through Idemia (IdentoGO). For an individual who has lived in Michigan for the past five years, the standard fee is $65. That includes the applicant, any planned staff, and every household member — even adult children or a spouse who has no role in the daycare.

For a household with two adults, that is $130. For a household with three adults and one staff member, $260.

Between March 30, 2026, and September 30, 2026, MiLEAP is covering fingerprinting costs through a temporary grant. If you are applying during this window, check whether funding is still available — it is first-come, first-served.

If any covered adult lived outside Michigan in the past five years, you must obtain out-of-state criminal history and child abuse registry checks from each prior state. These fees vary by state and are separate from Michigan's standard fingerprint fee.

Training Costs

Most required training is free:

• Health and Safety Training through MiRegistry — free
• Safe Sleep Practices through MiRegistry — free
• Licensing orientation (six hours) — free

The one out-of-pocket training cost is Pediatric CPR and First Aid certification, which typically runs $40–$80 through an approved provider like the American Red Cross or American Heart Association.

The Medical Clearance (Form CCL-3704) requires a physician visit, which costs whatever your doctor or urgent care charges for a clearance exam — typically $50–$150 with insurance or $100–$250 without.

Inspection and Testing Costs

Heating system inspection — a licensed heating contractor inspects fuel-fired furnaces, and a licensed plumbing/heating contractor inspects fuel-fired water heaters. Expect $75–$200 depending on the contractor and how many units you have. All-electric homes are exempt from this requirement.

Radon testing — professional radon test kits or short-term testing runs $50–$200. If your radon level exceeds 4.0 pCi/L, mitigation systems cost $1,000–$3,000 to install, and you must retest every four years.

Well water and septic inspection (if applicable) — local county health departments charge $100–$250 for the environmental health inspection. Lab testing for water quality adds another $50–$150.

Insurance

Michigan does not explicitly require commercial liability insurance to obtain a license, but operating without it is a significant financial risk. Standard homeowners policies exclude business activities — if a child is injured in your care, your personal homeowners policy will not cover it.

Commercial child care liability insurance typically costs $500–$2,000 per year depending on your capacity, coverage limits, and location.

Facility Modifications

The inspection requires specific safety equipment that you may or may not already have:

• 2A-10BC fire extinguisher for each child-use floor level — $30–$60 each
• Smoke and carbon monoxide detectors — $20–$40 per unit if you need additional ones
• Electrical outlet safety covers — $5–$15 for a bulk pack
• Fencing for the outdoor play area — highly variable, from $500 for a basic chain-link run to $3,000+ for a full privacy fence
• Locked storage for hazardous materials — $30–$100 for cabinet locks or a lockable storage unit

Total Budget Estimate

These estimates exclude fencing (if you do not already have it), well water and septic testing (only for private systems), and radon mitigation (only if levels exceed 4.0 pCi/L). Add those if applicable, and the upper end can reach $5,000–$7,000.

Sequencing to Protect Your Money

The reason sequencing matters: the non-refundable items (application fee, background checks) should come after you have confirmed feasibility with the free checks (zoning, household pre-screening, space measurements). The Michigan Home Daycare Licensing Guide puts every cost-bearing step after its corresponding feasibility check so you never pay for something before confirming it will work.

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