Texas Child Care Licensing

How to Start a Daycare in Texas — Step by Step

The complete 2026 guide to opening a daycare in Texas. Every step, every form, every requirement — from "I have an idea" to "I have my license." Written for people who have never done this before.

Updated April 2026 35 min read 14 Steps to Licensed
Table of Contents
  1. The Big Picture
  2. 1. Choose Your Facility Type
  3. 2. Pre-Application Class
  4. 3. Find a Location
  5. 4. Set Up Your Business
  6. 5. Background Checks
  7. 6. Required Training
  8. 7. Pass Inspections
  9. 8. Submit Application
  10. 9. Plan of Operation
  11. 10. Prepare Your Facility
  12. 11. Daily Operational Forms
  13. 12. Record-Keeping
  14. 13. Pre-Licensing Inspection
  15. 14. License Issued
  16. Staff-to-Child Ratios
  17. Emergency Drill Schedule
  18. Common Pitfalls
  19. Realistic Timeline
  20. Official Resources

The Big Picture

You want to open a daycare in Texas. Maybe you have been caring for children for years and you are ready to make it official. Maybe you see a need in your neighborhood and a business opportunity. Either way, you are probably staring at a wall of government websites and wondering where to even begin.

Take a breath. This guide walks you through the entire process in the order you should actually do things. Not in the order the state website lists them. Not in legal jargon. In the order that makes sense for a real person who needs to get from zero to open.

The regulatory body you will be dealing with is the Texas Health and Human Services Commission (HHSC), specifically their Child Care Regulation (CCR) Division. They are the ones who write the rules, process your application, inspect your facility, and issue your license. Their website is hhs.texas.gov/providers/child-care-regulation and you will visit it many, many times.

The governing law for child care centers is Chapter 746 — Minimum Standards for Child-Care Centers. For home-based operations, it is Chapter 747. These are the rulebooks. Everything your inspector checks comes from these chapters. You can download Chapter 746 as a PDF here. It is long, but it is the bible of running a daycare in Texas.

Before You Dive In

This guide primarily covers Licensed Child Care Centers (13+ children), which have the most requirements and the most revenue potential. We note where the process differs for home-based operations. The 14 steps below are in rough chronological order, but several can (and should) happen simultaneously. Background checks, for example, should start as early as possible because they take the longest.

Here is a quick overview of all 14 steps. Bookmark this page — you will be coming back to it.

1

Decide Your Facility Type

Before anything else, you need to decide what kind of operation you want to run. Texas recognizes four types, and each has different rules, different capacity limits, and different levels of regulation. This is the most important decision you will make because it determines everything else.

Most Common

Licensed Child Care Center

A dedicated facility (not your home) caring for 13 or more children. The most requirements, but also the most revenue potential and scalability.

Capacity: 13+ children
Location: Commercial or dedicated space
Standards: Chapter 746
Mid-Range

Licensed Child Care Home (LCCH)

You care for 7 to 12 children in your own home. More regulated than a registered home but less than a full center.

Capacity: 7–12 children
Location: Your residence
Standards: Chapter 747
Simplest Path

Registered Child Care Home (RCCH)

The simplest option. You care for 1 to 6 children in your own home with the least regulatory burden.

Capacity: 1–6 children
Location: Your residence
Standards: Chapter 747
Special Case

Listed Family Home

You care for children from only one family (in addition to your own). Different rules, lighter regulation, very specific use case.

Capacity: 1 family’s children
Location: Your residence
Standards: Separate requirements
Tip: Start Small If You Are Unsure

If you are on the fence, a Registered Child Care Home (1–6 kids) is the lowest-risk way to test whether this business is for you. The startup costs are minimal, the regulations are lighter, and you can always scale up to a Licensed Home or a full Center later.

For the rest of this guide, we will focus primarily on the Licensed Child Care Center path since it covers the most ground. If you are going the home-based route, most of the same steps apply but with fewer requirements. When the rules differ significantly, we will call it out.

2

Attend the Mandatory Pre-Application Class

Here is something that catches a lot of people off guard: you cannot submit your application to HHSC until you have attended their pre-application orientation class. This is not optional. It is a hard requirement. If you try to submit your application without proof of completing this orientation, it will be rejected.

The good news? The class is completely free and can be completed online or in person. It covers the licensing process, your responsibilities as a provider, and an overview of the minimum standards you will need to follow.

Think of it as the state giving you a roadmap before you start the journey. It takes about a day and it is genuinely useful — even if you already have experience with child care. The rules change, and this class makes sure you are current.

What the Orientation Covers
  • The HHSC licensing process and timeline
  • Your legal responsibilities as a child care provider
  • Overview of Chapter 746 (or 747) minimum standards
  • Background check requirements
  • Reporting obligations (abuse, neglect, incidents)
  • What to expect during inspections

To find the next available session, visit the HHSC Child Care Regulation page and look for pre-application information. You can also call your regional CCR office directly — they are generally helpful and can point you to the next available class.

Do This Early

Do not wait until you have a location and everything else lined up to take this class. Attend it first. You will learn things that affect your other decisions — like what kind of space you need, what your staffing plan should look like, and what the state actually cares about.

3

Find and Secure a Location

This is where the dream starts to get real. Your location will make or break your daycare — not just for business reasons, but because the state has very specific requirements about what kind of space is acceptable.

Check Zoning First

Before you sign a lease or put down a deposit, call your city or county zoning office. This is the single most common reason people waste thousands of dollars. Not every commercial space is zoned for child care. Not every residential neighborhood allows a home-based daycare. Get this confirmed in writing before you spend another dime.

Space Requirements

Unlike some states that specify exact square footage per child in statute, Texas takes a slightly different approach under Chapter 746. The standard requires that you have adequate indoor and outdoor space for the number and ages of children you serve. That said, the practical reality is that your inspector will evaluate whether your space is genuinely sufficient.

Location Requirements Checklist
  • Zoning: Confirmed with city/county for child care use
  • Indoor space: Adequate for the number and ages of children
  • Outdoor play area: Fenced, with age-appropriate equipment
  • Fire safety: Adequate exits, extinguishers, smoke/CO detectors
  • Health standards: Clean, pest-free, proper sanitation facilities
  • Gas safety: Gas lines and appliances properly maintained
  • ADA compliance: Accessible to children and parents with disabilities
  • Separate areas: Space for different age groups and activities
  • Kitchen/food prep: If you will serve meals (most centers do)
  • Restrooms: Child-sized or adapted, easily accessible
Common Mistake

People often find a great space, sign the lease, start renovating — and then find out it cannot pass fire inspection because there are not enough exits, or the zoning does not allow child care. Always get zoning clearance and a preliminary walk-through with the fire marshal before committing to a space.

4

Set Up Your Business

While you are working on your location, you should be getting your business infrastructure set up. None of this is unique to daycare — it is the same stuff any small business needs — but it all needs to be in place before you apply for your license.

Business Setup Checklist
  • Form a business entity: LLC, corporation, sole proprietorship, or nonprofit. An LLC is the most common choice for new daycare owners because it protects your personal assets. Talk to an attorney or use an online service.
  • Get an EIN (Employer Identification Number): Free from the IRS. You will need this for tax purposes, hiring employees, and opening a bank account. Apply at irs.gov — it takes about 10 minutes.
  • Open a business bank account: Keep your personal and business finances separate from day one. You will thank yourself later at tax time and if you ever need to demonstrate financial records.
  • Get liability insurance: This is required by HHSC. You will need to submit proof of coverage using Form 2962 (Verification of Liability Insurance) as part of your application. Shop around — premiums vary widely. Make sure your policy specifically covers child care operations.
On Insurance

Do not skimp on liability insurance. You are caring for other people's children. A standard general liability policy is not enough — you need a policy designed for child care providers. It should cover accidents, injuries, abuse allegations (even false ones), and property damage. Typical premiums for a new center run $2,000–$5,000/year depending on your capacity and coverage limits.

5

Background Checks (Start This First)

If there is one step in this entire guide where the order really matters, it is this one. Background checks take 2–4 weeks to process, and nothing else can move forward until they clear. Start them the moment you are serious about opening.

Every single person who will have access to the children in your care — including you, your director, every caregiver, and every employee — must pass a comprehensive background check. There are no exceptions.

What Gets Checked

Forms You Will Need

Form 2971 Request for Background Check

The main form that kicks off the background check process. You submit this for each person who needs to be checked.

Form 2982 Personal History Statement

A detailed personal history that each person fills out. Covers employment history, education, and personal background information.

Form 2912 Pre-Employment Affidavit

Each person signs this before they start working, affirming they have no disqualifying criminal history.

Form 2985 Affidavit for Employment

Needed for each hire. This is a sworn statement related to the person's eligibility to work in a child care setting.

What Disqualifies You

Certain offenses will permanently bar you from working in child care in Texas. These include:

Critical

You must clear your background check BEFORE you can be around children in a caregiving capacity. Do not hire someone and put them in a classroom while their check is pending. That is a violation, and it is one inspectors take very seriously. If someone's check comes back with a disqualifying offense, they cannot work in your facility. Period.

Processing time: Typically 2–4 weeks, but it can take longer during busy periods. This is why we said to start this step first. While you are waiting for background checks to clear, you can be working on training, inspections, and your application paperwork.

6

Complete Required Training

Texas requires a significant amount of training before you can open your doors. This is not busy work — it is designed to make sure you and your staff actually know how to keep children safe. And frankly, even experienced child care providers find the training useful.

Pre-Service Training

What the Training Must Cover

Additional Requirements

Training can be completed through various HHSC-approved providers. Many offer online courses, which makes it easier to fit into your schedule while you are juggling everything else in this process.

Tip

Keep meticulous records of all training. Every certificate, every attendance record, every completion confirmation. Your inspector will check training documentation for every single staff member. Missing documentation is one of the most common deficiency findings.

7

Get Your Inspections Done

Before HHSC will license you, your building needs to pass three separate inspections. These are done by different agencies, so you will need to coordinate with multiple offices. Start scheduling these early — it can take 2–4 weeks to get on someone's calendar.

Required Inspections
  • Fire inspection: Contact your local fire marshal. They will check exits, extinguishers, smoke detectors, CO detectors, egress paths, and general fire safety. This is the one most people struggle with.
  • Health inspection: Contact your local health authority. They will check sanitation, food handling areas, pest control, restroom facilities, and general cleanliness.
  • Gas inspection: Required in Texas. Contact your gas utility or local authority having jurisdiction. They check gas lines, appliances, ventilation, and carbon monoxide risks.

All three must pass before you can receive your license. The certificates from these inspections are part of your application package.

Common Fire Inspection Failures

The fire inspection trips up more people than any other. Here are the most common reasons for failure:

Pro Move

Before scheduling your official fire inspection, ask the fire marshal if they offer a pre-inspection walk-through. Many do, and it is informal — they will point out problems before they become official failures. Fix everything they flag, then schedule the real inspection. This can save you weeks of back-and-forth.

8

Submit Your Application

This is the big one. Once you have your pre-application class completed, your background checks submitted, your inspections passed, and your business set up, it is time to officially apply for your license.

Texas has an online system for this: the HHSC eApplication System. You can complete and submit most of your paperwork online, though some forms may need to be mailed or uploaded as attachments.

Key Forms to Submit

Form 2910 Application for License/Certification

This is THE application. The main form that starts the whole licensing process. It asks for your facility information, proposed capacity, ages served, and operational details.

Form 2911 Governing Body/Director Designation

Identifies who is running the show — your board of directors (if applicable) and the designated director of the facility.

Form 2760 Controlling Person Disclosure

Discloses everyone who has control over the operation — owners, board members, anyone with significant decision-making authority. HHSC needs to know who is ultimately responsible.

Form 2962 Verification of Liability Insurance

Proof that you have liability insurance in effect. Your insurance company can typically fill this out for you.

Form 2948 Plan of Operation

This one is important enough to get its own step (Step 9). It describes exactly how your center will operate day to day.

Also Include

All forms are available on the HHSC Child Day Care Regulation Forms page.

Incomplete Applications Get Delayed

The number one reason applications get stuck in processing is missing paperwork. Before you submit, go through every required form and make sure it is complete, signed, and dated. One missing signature can add weeks to your timeline. Make a physical checklist and check everything off before you hit submit.

9

Write Your Plan of Operation

Your Plan of Operation — Form 2948 — deserves special attention because it is not just a form you fill out and forget. It becomes a legally binding document. Once HHSC approves it, your inspector will check your actual operations against what you wrote in this plan. If your plan says you serve lunch at noon but you actually serve it at 11, that is a deficiency.

What Form 2948 Covers

Write It Carefully, but Realistically

Do not write an aspirational fantasy. Write what you will actually do. Be specific enough to be useful, but give yourself reasonable flexibility. For example, instead of writing "Lunch is served at 12:00 PM sharp," write "Lunch is served between 11:30 AM and 12:30 PM depending on the age group." Your inspector checks compliance against YOUR plan — so a plan that is too rigid sets you up for unnecessary deficiency findings.

10

Get Your Facility Ready

With your paperwork in the pipeline, it is time to make your physical space inspection-ready. Your licensing representative will evaluate your facility against a long list of safety and quality requirements. Here is what you need to have in place.

Facility Safety Checklist
  • Age-appropriate furniture and equipment — sized for the children you serve, in good repair, no sharp edges
  • Cribs meeting CPSC standards — required for infants. No drop-side cribs. Firm mattress, fitted sheet, nothing else in the crib.
  • Electrical outlets childproofed — required in all rooms accessible to children under age 5
  • Glass in sliding doors marked at children's eye level — so kids do not walk into them
  • Toxic materials and cleaning supplies locked away or stored out of children's reach
  • Bodies of water inaccessible — pools, ponds, fountains must be fenced or otherwise made inaccessible to children
  • TVs and heavy furniture anchored — so they cannot tip over onto a child
  • Working phone on premises — you need a reliable way to call 911 and parents at all times
  • First aid kits stocked and accessible to staff (but not to children)
  • Proper lighting, heating, and ventilation throughout all child-accessible areas
  • Outdoor equipment age-appropriate — installed properly, adequate fall zones, no exposed hardware
  • Fencing around outdoor play areas — must prevent children from leaving and strangers from entering
The Details Matter

Inspectors notice everything. A loose outlet cover, a cleaning bottle left on a low shelf, a broken latch on a cabinet with bleach inside. Walk through your space at a child's eye level — literally get on your knees — and look for hazards you would never notice standing up. This exercise catches more problems than any checklist.

11

Prepare Your Daily Operational Forms

Texas requires specific forms and logs that you will use every single day your center is open. These are not one-time forms — they are ongoing operational documents. Get them printed (or set up digitally) and train your staff on how to use them before you open.

Form 1100 Daily Building and Grounds Checklist

Filled out every single day before children arrive. It has 22 items covering everything from fire exits to playground equipment to safe sleep environments. This is the form inspectors check first — it shows whether you take daily safety seriously.

Form 2941 Sign-In / Sign-Out Log

Tracks every child's arrival and departure, with the time and the signature of the person dropping off or picking up. This is your proof of who was in your care and when. It must be filled out in real time — not after the fact.

Form 7263 Emergency Practices Log

Tracks all your emergency drills — fire, severe weather, lockdown — plus monthly equipment tests. Your drill schedule is strict (see the Emergency Drills section below), and this form proves you are doing them.

Form 7240 Monthly Attendance Record

A monthly summary of attendance for each child enrolled. Used for tracking and reporting.

Form 7239 Incident / Illness Report

Filled out any time a child is injured or becomes ill while in your care. Parents must receive a copy. Inspectors review these to look for patterns.

Form 7243 Emergency Telephone Numbers

A list of emergency contacts — 911, poison control, your local CCR office, and your designated emergency contacts. Must be posted by every phone in the facility.

Form 7255 Medication Authorization

Required before you can administer any medication to a child. Parents must fill it out and sign it for each medication, with specific dosage and timing instructions.

Form 2550 Infant Safe Sleep Policy

Required if you serve infants. Documents your safe sleep practices (back to sleep, nothing in the crib, firm mattress, etc.).

Form 1099 Discipline and Guidance Policy

Your written policy on how behavioral issues are handled. Must comply with Chapter 746 requirements (no corporal punishment, no withholding food, no humiliation). Must be shared with parents.

12

Set Up Your Record-Keeping Systems

When an inspector walks into your center, they are going to look at three categories of files. These files are checked using specific HHSC evaluation forms, and the inspector will pull individual records at random to verify completeness. Your filing system needs to be organized, up to date, and immediately accessible.

Category 1: Child Files (Form 7260)

One file per child. The inspector uses Form 7260 to evaluate whether each child's file is complete.

Every Child File Must Contain
  • Form 2935 — Admission Information: Complete demographic and enrollment data
  • Emergency contacts: At least two people besides parents
  • Immunization records: Current per Texas state requirements
  • Allergy and medical conditions: Documented and flagged for staff
  • Parent authorizations: Medication, authorized pickup list, field trip permissions
  • Sign-in/sign-out records: Current and accessible

Category 2: Staff Files (Form 7259)

One file per employee. The inspector uses Form 7259 to evaluate whether each staff member's file is complete.

Every Staff File Must Contain
  • Background check clearance: Current and on file
  • Form 2912 — Pre-employment affidavit: Signed before employment started
  • Form 2985 — Employment affidavit: Signed and current
  • Training documentation: Orientation records, 24 clock hours/year, pre-service training proof
  • Health statement: Confirming the employee is physically able to perform duties
  • Pediatric CPR and First Aid certification: Current and not expired
  • Professional development records: Annual training hours tracked and documented

Category 3: Center Files (Form 7261)

These are your facility-wide operational documents. The inspector uses Form 7261 to evaluate them.

Center File Must Include
  • License/permit documentation: Your actual license, displayed prominently
  • Form 2948 — Plan of Operation: Current, approved version
  • Form 2962 — Verification of Liability Insurance: Current coverage
  • Fire, health, and gas inspection records: Most recent certificates
  • Form 7263 — Emergency Practices log: Current, showing all required drills
  • Posted menus and activity plans: Current week's menu and daily activity schedule
  • Form 2760 — Controlling persons documentation: Current and accurate
  • Any waivers or variances (Form 2937): If you have been granted any exceptions to standards
Organization Saves You on Inspection Day

Create a consistent filing system and maintain it religiously. Color-coded folders, alphabetical tabs, whatever works for you. When an inspector asks to see a specific child's immunization record, you should be able to pull it in under 30 seconds. Fumbling through disorganized files makes inspectors nervous — and nervous inspectors look harder.

13

Pass Your Pre-Licensing Inspection

Once HHSC processes your application and everything checks out on paper, they will schedule a pre-licensing inspection. A CCR Licensing Representative will visit your facility in person and evaluate everything — your space, your records, your safety measures, your policies, your equipment, everything.

What They Check

The inspector uses the same three evaluation forms mentioned above:

They also do a complete physical walk-through checking:

What Happens If You Do Not Pass

If the inspector finds deficiencies, you will receive a detailed list of what needs to be fixed. You then submit Form 7277 (Plan of Action) explaining exactly how and when you will correct each deficiency. Minor issues can often be fixed quickly. Major issues — like structural safety problems — can significantly delay your opening.

Extra Monitoring in Year One

Even after you pass, new operations receive extra monitoring during the first year. Expect more frequent visits from your licensing representative. This is normal and not a sign that you did something wrong. HHSC just wants to make sure new providers are maintaining standards once the adrenaline of opening day fades.

14

License Issued — You Are Open for Business

Once you pass your pre-licensing inspection, HHSC issues your license. This is the moment. You are now a licensed child care provider in the state of Texas.

But here is the thing: getting the license is not the finish line. It is the starting line. From this point forward, you are subject to:

Congratulations — and Keep Going

You just completed one of the most demanding licensing processes in the state. Be proud of that. But do not let your guard down. The centers that thrive are the ones that run every day like an inspector might walk in at any moment — because they might. Maintain your records, keep training, do your drills, and treat every child like your own.

Staff-to-Child Ratios

Ratios are one of the most important (and most inspected) requirements in Texas child care. These are set in Chapter 746, Subchapter E and there is no wiggle room. If you are even one child over ratio, that is a violation.

Texas is unusual in that it enforces both a ratio AND a maximum group size. Even if your staff-to-child ratio is technically fine, you cannot exceed the maximum group size for that age group. Both must be met simultaneously.

Age Group Staff : Children Max Group Size
0–11 months 1 : 4 10
12–17 months 1 : 5 13
18–23 months 1 : 9 18
2 years 1 : 11 22
3 years 1 : 15 30
4 years 1 : 18 35
5 years 1 : 22 35
6–8 years 1 : 26 35
9–12 years 1 : 26 35
Ratios Apply at All Times

Ratios must be maintained at all times — including during meals, nap time, outdoor play, and transitions. The most common time centers fall out of ratio is during staff breaks and shift changes. Plan your staffing schedule carefully, with overlap built in. If a teacher calls in sick, you need a plan that does not involve being out of ratio even for 15 minutes.

For the full ratio rules, see Chapter 746, Subchapter E.

Emergency Drill Schedule

Texas takes emergency preparedness seriously. You are required to conduct regular drills and equipment checks, all tracked on Form 7263 (Emergency Practices Log). Missing a drill is a deficiency finding. Here is your schedule:

Monthly
Required Frequency
Fire Drills
Must evacuate in under 3 minutes
4x/yr
Required Frequency
Severe Weather Drills
Practice shelter-in-place
4x/yr
Required Frequency
Lock-Down Drills
Intruder/threat response
Monthly
Required Frequency
CO Alarm Tests
Test all CO detectors
Monthly
Required Frequency
Smoke Detector Tests
Test all smoke detectors
Monthly
Required Frequency
Fire Extinguisher Checks
Visual inspection, pressure gauge
Calendar It

Put every drill on a recurring calendar with reminders. Assign one staff member as the "drill coordinator" who is responsible for conducting the drill and filling out Form 7263 immediately afterward. The biggest risk is not that drills are hard — it is that people forget to do them and then scramble to catch up before an inspection.

Common Reasons People Get Denied or Delayed

After seeing hundreds of applications succeed and fail, patterns emerge. Here are the most common reasons people hit roadblocks — and how to avoid each one.

Pitfall Why It Happens How to Avoid It
Background check delays People wait too long to start them Submit background checks the same week you decide to open. They take 2–4 weeks minimum.
Skipped pre-application class Did not know it was required Attend the orientation before doing anything else. Your application will be rejected without it.
Fire inspection failure Building was not designed for child care Get a pre-inspection walk-through from the fire marshal before committing to a space.
Zoning not approved Assumed the space was zoned for child care Verify zoning with city/county in writing before signing a lease or buying.
Incomplete application Missing forms, signatures, or attachments Use a checklist. Have someone else review your package before submitting.
Space does not meet standards Inadequate outdoor area, not enough restrooms, accessibility issues Read Chapter 746 space requirements carefully before choosing a location.
Missing training documentation Training was completed but not documented Save every certificate, every completion record. If you cannot prove it happened, it did not happen.

Realistic Timeline

People always ask: "How long will this take?" The honest answer is 2 to 4 months if you are organized and everything goes smoothly. Here is a realistic breakdown:

Parallel, Not Sequential

The fastest path is to do as many things simultaneously as possible. While your background checks are processing, you can be taking training, setting up your business, finding a location, and scheduling inspections. Do not wait for each step to finish before starting the next one. The only hard dependencies are: pre-application class must be done before applying, background checks must clear before being around children, and inspections must pass before the license is issued.

Official Resources and Links

Bookmark these. You will need them throughout the process and for as long as you operate your daycare.

Ready to Get Started?

ComplianceKit helps Texas daycare owners stay organized and inspection-ready from day one. Automated checklists, form tracking, drill reminders, and record management — all built for the way real centers operate.

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About ComplianceKit

ComplianceKit builds compliance tools for child care providers. We take the dense, confusing world of state licensing regulations and turn it into clear, actionable guidance. Our tools help daycare owners manage forms, track training, schedule drills, organize records, and stay inspection-ready every day — not just the day before an inspector shows up.

We are not lawyers and this guide is not legal advice. It is based on publicly available HHSC regulations and is intended as an educational resource. Always verify current requirements directly with HHSC Child Care Regulation and consult with a qualified professional for your specific situation.