How much does it cost to open a daycare center?

A licensed daycare center typically costs $50,000 to $300,000 to open, depending on the size of the facility and your state's licensing requirements. The largest expenses are the commercial lease, safety compliance build-out, and working capital to cover staff payroll before reaching full enrollment.

What are the licensing requirements for a daycare?

Every state requires a childcare facility license, which involves staff-to-child ratio compliance, facility safety inspections, background checks on all employees, CPR certification, and minimum space requirements per child (typically 35 sq ft indoors). The licensing process takes 2-6 months depending on the state.

How many children does a daycare need to be profitable?

Most small daycare centers need 20-40 enrolled children to cover expenses and generate profit, depending on tuition rates and staffing costs. At an average tuition of $800-$1,500 per month per child, a center with 30 children generates $24,000-$45,000 in monthly revenue.

Daycare Startup Cost Comparison

Atlanta, GA vs Chicago, IL

Atlanta, GA

$48,000 - $203,000

COL Index: 101.4

Chicago, IL

$57,000 - $235,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Atlanta, GA	Chicago, IL	Difference
Business Registration & Childcare License	$2,400 - $8,900	$5,600 - $10,900	-32%
Commercial Lease (First + Last + Security)	$11,500 - $64,600	$15,700 - $88,000	-27%
Furniture, Equipment & Toys	$8,000 - $30,000	$8,000 - $30,000	Same
Safety & Compliance Build-Out	$5,200 - $26,000	$5,800 - $28,800	-10%
Business Insurance (Annual)	$3,000 - $12,000	$3,000 - $12,000	Same
Background Checks & Staff Training	$500 - $3,000	$500 - $3,000	Same
Marketing & Enrollment Drive	$2,000 - $8,000	$2,000 - $8,000	Same
Working Capital (3 Months)	$15,200 - $50,700	$16,200 - $53,900	-6%
Total Estimated Cost	$48,000 - $203,000	$57,000 - $235,000	-14%

Local Market Factors

Factor	Atlanta	Chicago
Cost of Living Index	101.4	107.8
Commercial Rent ($/sqft/yr)	$18 - $48	$25 - $65
Labor Rate Index	1.04	1.15
Sales Tax	8.9%	10.25%
Minimum Wage	$7.25/hr	$15.80/hr
LLC Filing Fee	$100	$150

View Full Details

Ready to Start Your Daycare?

Start your Daycare LLC in — free registered agent for 1 year.

Form Your LLC for $0 + State Fee →

Trusted by 500,000+ businesses · Excellent rating on Trustpilot