To start a daycare in NYC, you need a permit from one of two agencies: the NYC Department of Health and Mental Hygiene if you are opening a center-based program in a commercial space, or the New York State Office of Children and Family Services if you are running care out of your home. Either path requires you to form a legal business, pass background checks, meet space and safety standards, complete mandatory training, and clear a pre-permit inspection. Budget several months from your first step to opening day, and plan for a $200 permit application fee on top of insurance, buildout, and staff onboarding costs.
Pick Your License Type First
This decision shapes every requirement that follows, so make it before you spend money on anything else.
Center-Based Group Child Care
A group child care program serves three or more children under age six for five or more hours a week, for more than 30 days in any 12-month period.1NYC Health. Regulations and Permits for Child Care Providers These programs fall under the NYC Health Department and must comply with NYC Health Code Article 47. This is the category for most commercial daycares operating out of storefronts, converted buildings, or dedicated childcare spaces.
Home-Based Family and Group Family Day Care
Home-based childcare follows a different regulatory path managed by OCFS.2OCFS (ny.gov). Home-Based Child Care Q and A for Parents A family day care home cares for three to six children in a residence. A group family day care home serves seven to twelve children but requires at least one assistant on-site when caring for seven or more children, or nine or more when at least two are school-age.3New York State Child Day Care Regulations. Part 413 Child Care Definitions, Enforcement and Hearings Home-based programs serve children from six weeks through 12 years who attend for more than three hours per day on a regular basis.
Staffing ratios depend on the ages of the children you take. OCFS requires one caregiver for every two children under age two in home-based programs.4New York State Social Services Law. Social Services Law Section 390 Child Day Care Center-based programs follow the staffing tables in Article 47, which set separate ratios for infants, toddlers, and preschoolers. Confirm the exact numbers before you hire, because missed ratios are one of the fastest ways to fail an inspection.
Set Up the Business and Check Zoning
Form Your Entity and Get an EIN
Form your legal business before you apply for a childcare permit. Most operators set up an LLC, corporation, or nonprofit. Filing articles of organization for an LLC with the New York Department of State costs $200.5New York Department of State. Forming a Limited Liability Company in New York Form the entity with the state before applying for a federal Employer Identification Number, since the IRS may delay the EIN application otherwise.6Internal Revenue Service. Get an Employer Identification Number You need the EIN to hire employees, open a business bank account, and file taxes.
Confirm the Space Is Zoned for Childcare
Not every building in NYC can legally house a daycare. Under the city’s Zoning Resolution, a standalone childcare center is classified as a School Use Group 3 and is only allowed as a primary use in zoning districts where that group is permitted.7NYC.gov. Accessory Day Care Centers and Day Nurseries A daycare that is accessory to an existing permitted use in a building and serves children of the building’s occupants can operate in all zoning districts without a separate use classification, but it cannot be accessory to a one- or two-family dwelling or an individual apartment. Verify the zoning before you sign a lease or commit to buildout costs.
Background Checks and Medical Clearances for Staff
Every person who will have contact with children must clear multiple background checks before they start work. This covers staff, volunteers, and, for home-based programs, any adult household members present during operating hours.
The Statewide Central Register clearance confirms there are no indicated reports of child abuse or maltreatment against the person. Authorized agencies submit these checks through the OCFS Online Clearance System, and the fee is $25 per database check.8Office of Children and Family Services. SCR Online Clearance System
Federal law also requires a national FBI criminal history check using fingerprints for every childcare staff member. A prospective employee cannot begin working until the FBI fingerprint check comes back satisfactory, though they may begin under continuous supervision once either the FBI check or the state fingerprint repository search clears.9Child Care Technical Assistance (childcareta.acf.hhs.gov). Comprehensive Background Check Requirements Checks should finish within 45 days. Build this timeline into your hiring plan so you are not scrambling at opening.
Separately, every staff member and volunteer needs a physical exam and documented immunizations from a licensed health care provider. Under the NYC Health Code, staff must show they have received two doses of measles-containing vaccine, two doses of mumps-containing vaccine, and other standard immunizations. Keep these records current and available for inspection.
Required Training Before and After Opening
At least one staff member trained in CPR and first aid must be on-site during all operating hours, and at least one person trained to administer an epinephrine auto-injector must also be present at all times. All staff must complete Mandated Reporter training, which covers how to recognize and report signs of child abuse and neglect.10NYC.gov. Group Child Care Training and Professional Development Resources
Training continues after you open. OCFS requires all childcare staff and volunteers with regular contact with children to complete 30 hours of approved training every two years, with a minimum of five hours each year. The required curriculum covers ten topic areas, including child development, nutrition and health, safety and security, child abuse identification, and business recordkeeping.11Office of Children and Family Services. Training Requirements Document every course and keep the records organized, because inspectors will ask.
Physical Space and Safety Standards
Certificate of Occupancy
Your facility needs a Certificate of Occupancy from the NYC Department of Buildings that specifically allows child care use. If the building was previously used for something else, you need a change-of-use permit before operating.12NYC.gov. Certificate of Occupancy No one can legally occupy a building until the Department has issued a CO or a Temporary Certificate of Occupancy. For center-based programs, a copy of the current CO must be submitted with your permit application.13New York State Office of Children and Family Services (OCFS). New York State Child Day Care Regulations Part 418-1 Child Day Care Centers
Indoor Space, Lead Paint, and Window Guards
NYC Health Code Article 47 requires center-based programs to provide at least 30 square feet of indoor floor space per child. All painted surfaces must be inspected for lead-based paint. Programs with lead-based paint or paint of unknown content must complete an annual lead survey, visually inspect all interior painted surfaces accessible to children, and make any needed repairs within 30 days using an EPA-certified contractor.14NYC.gov. Article 47 Revisions to Lead-Based Paint Requirements Programs that demonstrate through XRF testing that the facility is lead-free are exempt from the annual survey. Window guards are required on windows above the ground floor throughout the city.
Fire Safety and Emergency Planning
Smoke detectors, fire extinguishers, and other fire safety systems must be tested and maintained in compliance with FDNY requirements. You also need a written emergency plan and evacuation diagram. The plan must prioritize safe and timely evacuation and relocation of children, account for children with disabilities, and be reviewed with both parents and all staff.15Legal Information Institute. New York Comp Codes R and Regs Tit 18 Section 418-1.5 Safety Cover all four scenarios: evacuation, relocation to a secondary location, sheltering in place, and lockdown.
Outdoor Play Space
If your facility has dedicated outdoor space, it must be safe and properly enclosed. If not, you can use public parks, schoolyards, or public play areas, but you must submit a written diagram showing how children will safely travel to and from the location.13New York State Office of Children and Family Services (OCFS). New York State Child Day Care Regulations Part 418-1 Child Day Care Centers This arrangement is common in NYC, but your supervision plan for transit needs to be thorough.
Insurance You Need Before Opening
General liability insurance is required for both center-based and home-based programs. Your application must include a certificate of insurance showing the intent to provide general liability coverage upon licensure, and a copy of the actual policy must be provided after you receive your permit.13New York State Office of Children and Family Services (OCFS). New York State Child Day Care Regulations Part 418-1 Child Day Care Centers
New York State also requires virtually all employers to carry workers’ compensation and disability insurance for their employees.16New York Workers’ Compensation Board. Disability Benefits Coverage Requirements If you are hiring even one person, you need both, and proof of coverage is part of the renewal documentation. General liability premiums for a small operation typically run in the low-to-mid four figures annually, though your actual cost depends on enrollment, staff count, and claims history.
The Application Itself
Many prospective owners get the sequence wrong. For center-based programs, you must attend a pre-permit orientation session before you can even apply. The orientation gives you a certificate number required on the application, so there is no skipping it.17Official Website of the City of New York. Group Child Care Center-Based Permit The NYC Health Department holds these sessions at borough offices, with the schedule on the Child Care Connect portal.18NYC Health. Group Child Care Center-Based Information for Operators Home-based providers follow a similar sequence through OCFS: complete the online orientation course, which tracks your progress and must be finished before you can request an application.19Office of Children and Family Services. Day Care Orientation
Once you have the orientation certificate, submit the full application through the appropriate portal. Center-based programs use NYC Child Care Connect. The application asks for detailed business information, including identifying information for every board member and a full organizational chart. Home-based providers must name their designated assistants and identify any adult household members present during operating hours. Upload everything: background check results, medical clearances, training certificates, insurance certificates, the Certificate of Occupancy, the emergency plan, and architectural plans. The application fee for a center-based group child care permit is $200, payable by credit or debit card.17Official Website of the City of New York. Group Child Care Center-Based Permit
After the agency has your package, it schedules a pre-permit inspection. Inspectors walk through the facility to verify that the physical space, safety equipment, and posted documentation match what you submitted. The timeline from application to final permit can take several months. Monitor your online account during the wait for requests for additional information. A successful inspection leads to a temporary permit, followed by a permanent one after a period of compliant operation.
Federal Rules That Also Apply
ADA Accessibility
The Americans with Disabilities Act applies to childcare centers regardless of size. In an existing building you must remove physical barriers where doing so is “readily achievable,” meaning without much difficulty or expense. Examples include offset hinges to widen doorways, grab bars in restrooms, and rearranged furniture. New construction designed and built for first occupancy after March 15, 2012 must fully comply with the 2010 ADA Standards for Accessible Design.20ADA.gov. Commonly Asked Questions about Child Care Centers and the Americans with Disabilities Act Government-run centers face a higher standard and must ensure program accessibility unless changes would impose an undue burden.
Minimum Wage and Overtime
As of January 1, 2026, the minimum wage in New York City is $17.00 per hour.21Official Website of the City of New York. Minimum Wage The federal Fair Labor Standards Act requires overtime pay at one-and-a-half times the regular rate for any hours over 40 in a workweek. A common mistake among daycare operators is calculating overtime based on 80 hours across two weeks instead of 40 hours in each individual week.22U.S. Department of Labor Wage and Hour Division. Fact Sheet 46 Daycare Centers and Preschools Under the Fair Labor Standards Act Preschool teachers whose primary duty is instruction may qualify for the professional exemption, but workers whose main responsibility is attending to children’s physical needs generally do not.
Meal Program Participation
If you plan to serve meals, the USDA’s Child and Adult Care Food Program reimburses participating childcare centers for nutritious meals and snacks. Participation is voluntary, but the reimbursements can meaningfully offset food costs, and many parents look for CACFP participation when choosing a program. Contact your local CACFP sponsoring organization to enroll.
After You Open: Renewals and Inspections
Your center-based permit is valid for two years and must be renewed online. The renewal fee is $200, and all fines for Health Code violations must be paid before you can renew, so unresolved citations block the process.17Official Website of the City of New York. Group Child Care Center-Based Permit At renewal, you must upload updated documents including your annual lead paint survey (if applicable), proof of current workers’ compensation and disability insurance, and any changes to your incorporation documentation, health care plan, architectural plans, safety plan, or Certificate of Occupancy.
Expect unannounced inspections between renewals. The Health Department requires every group child care program to post a child care performance summary card, which functions like a restaurant health grade for daycares.18NYC Health. Group Child Care Center-Based Information for Operators Keep training records, medical clearances, background check documentation, and emergency plans current and accessible at all times. The programs that run into trouble are usually the ones that let paperwork lapse between inspections rather than maintaining it as a routine.
Funding Help for New Operators
Opening a daycare in NYC takes substantial upfront capital. The Small Business Administration offers several financing options. The CDC/504 loan program provides long-term, fixed-rate financing of up to $5 million for equipment and facilities. SBA 7(a) loan guarantees provide working capital for equipment, inventory, and hiring. The microloan program offers up to $50,000, with an average loan around $13,000.23U.S. Small Business Administration. Child Care Business Development Support Use the SBA’s Lender Match tool to find authorized lenders in your area.
Providers who accept children receiving government subsidies through the Child Care and Development Fund can receive subsidy payments from the state. Participation expands your potential client base in a city where many families depend on subsidy assistance to afford care. Contact your local Child Care Resource and Referral agency for details on becoming a subsidy-eligible provider.