How to Start a Daycare in Colorado

Opening a daycare business can be an exciting career move and allows you to nurture and teach children in your community. Quality child care allows children to get an early start on their education, supporting their cognitive, language, physical, and social-emotional skills, and is a necessity for working families. 

This article will cover everything you need to know about how to start a daycare in Colorado, including what licensing is required, the steps to apply for the right license, and how to stay compliant. 

Do I need a childcare license in Colorado?

There are many steps and processes included in opening a center-based or home-based childcare program. From creating a marketing strategy and business plan to choosing a name for your facility, it’s important to have your to-do list in order. Most importantly, you should know the legal requirements for your state. In Colorado, a license is required to open a daycare where you’ll be caring for two or more children who are unrelated to you. The Colorado Department of Early Childhood (CDEC) manages childcare licensing at the Colorado Department of Human Services (CDHS). Before obtaining a license, decide what type of facility you'd like to operate and how many children will be in your care. 

Colorado has two types of childcare licenses that require the same steps to obtain but have different licensing rules, procedures, and fees:

Non-home child care licenses apply to five program types, including:

• Child care centers: These facilities offer care for more than five children from birth to 18 years of age
• School-aged child care centers: These facilities specifically cater to children aged five to 18, providing care for more than five children within that age range
• Neighborhood youth organizations: These nonprofit organizations focus on youth development activities and provide services to children between the ages of six and 18
• Day treatment centers: These facilities specialize in psycho-social and behavioral treatment, catering to five or more children between the ages of three and 21
• Resident camps: These facilities offer round-the-clock care for three or more consecutive days to children aged six to 18, providing an immersive camp experience

Family child care home (FCCH) licenses are for care providers operating out of their residence for less than 24 hours of care at any time for two or more children unrelated to each other and the provider. There are five types of FCCH licenses, including:

• Regular FCCH license: Allows the provider to care for one to six children ages birth to 18 years, with a maximum of two children under the age of two. Additionally, the provider can care for up to two school-age children who attend full-day school
• Three children under 2 FCCH license: Allows the provider to care for children from birth to 18 years, with a maximum of three children under the age of two
• Infant and toddler home license: Enables the provider to offer child care for children between birth and three years of age. Capacity limits depend on the number of children and the age/experience of the childcare providers in the home
• Large FCCH license: Permits the provider to care for seven to 12 children ages birth to 18 years, with a maximum of two children under the age of two
• Experienced family child care provider (ECCP) license: Designed for experienced childcare providers, this license allows them to care for up to nine children in their home, including their own children

According to Colorado's social services, there are several licensing exemptions. For example, a license isn't required for: 

• A special school or class in religious instruction 
• A special school or class operated for a single skill-building purpose  
• A child care center operated in connection with and on the premises of a church, shopping center, or business where children are cared for during short periods of time
• Occasional care of children with or without compensation
• A family care home that provides less than 24-hour care. Care must only be provided using one of the options below at any one time: 
  • Care of children who are directly related to the caregiver by blood, marriage or adoption
  • Care of up to four children, related or unrelated to the caregiver (no more than two children under the age of two years may be cared for at any one time)
• A childcare facility that is approved, certified, or licensed by any other state department or agency or by a federal government department or agency, which has standards for the operation of the facility and inspects or monitors the facility
• The medical care of children in nursing homes
• Guest childcare facilities

Childcare licensing requirements in Colorado

Starting a daycare in Colorado requires compliance with various licensing requirements depending on the type of facility you intend to open. For all facility types, in-state applicants must complete a:

• Criminal background check
• Child abuse and neglect records check
• State child abuse and neglect registry check (SCAN) (for previous states of residence)
• State sex offender registry (SSOR) check (for previous states of residence)
• State criminal history check (SCH) (for previous states of residence)

Out-of-state applicants must:

• Participate in a child abuse and neglect records check

Non-home care

Provider requirements

Non-home care applicants must:

• Complete pre-service training 
• Complete orientation training 
• Have three clock hours of social-emotional development training 
• Complete 12 clock hours of training focused on: 
  • Child growth and development and learning or courses that align with the competency domains of child growth and development
  • Child observation and assessment
  • Family and community partnership
  • Guidance
  • Health, safety, and nutrition
  • Professional development and leadership
  • Program planning and development
  • Teaching practices
• Take the following courses:
  • Building & physical premises safety/storage of hazardous materials & bio-contaminants
  • CPR & first aid certification
  • Emergency and disaster preparedness 

• • Recognition & reporting of child abuse & neglect
  • Introduction to the early intervention and preschool special education programs
  • Recognizing the impact of bias on early childhood professionals
  • Infant safe sleep practices
  • Prevention of shaken baby syndrome & abusive head trauma
  • Medication administration training
  • Precautions in transporting children
  • Childcare and preschool immunizations
  • Introduction to childcare health consultation

Ratio requirements

• 6 weeks to 18 months (infants): One staff member for five children (1:5) 
• 12 months to 36 months: One staff member for five children (1:5)
• 24 months to 36 months: One staff member for seven children (1:7)
• 2-1/2 years to 3 years: One staff member for eight children (1:8)
• 3 years to 4 years: One staff member 10 children (1:10)
• 4 years to 5 years: One staff member for 12 children (1:12)
• 5 years and older: One staff member for 15 children (1:15)
• Mixed age group (2-1/2 years to 6 years): One staff member for 10 children (1:10)

Family child care home

Provider requirements

Family child care home applicants must:

• Complete orientation training 
• Have three clock hours of social-emotional development training 
• Complete 12 clock hours of training focused on: 
  • Child growth and development and learning or courses that align with the competency domains of child growth and development
  • Child observation and assessment
  • Family and community partnership
  • Guidance
  • Health, safety, and nutrition
  • Professional development and leadership
  • Program planning and development
  • Teaching practices
• Take the following courses:
  • Building & physical premises safety/storage of hazardous materials & bio-contaminants
  • Disaster preparedness and emergency response
  • Prevention of shaken baby syndrome & abusive head trauma
  • Infant safe sleep practices
  • Recognition & reporting of child abuse & neglect

• • CPR & first aid certification
  • Administration of medication
  • Childcare and preschool immunizations
  • Pre-licensing
  • Child Development Associate (CDA) credential (for Large Family Child Care Home License)
  • Expanding Quality in Infant Toddler (EQIT) (for Large Family Child Care, Three Under Two, Infant/Toddler, and Experience Family Child Care Home Licenses)
  • Participate in the state quality rating and improvement system, Colorado Shines, if enrolling children five years or younger

Ratio requirements

• • All ages: One staff member for six children (1:6)
    • This includes family members plus an additional two before- and after-school children
    • No more than two children under two or if the provider has been licensed for at least two years with no substantiated complaints, the provider may be approved for three children under two years of age with no additional school-aged children
  • Infant/toddler: One staff member for four children (1:4) or two staff members for eight children (2:8)
  • Large Family Care Home: Two staff members for 12 children (2:12)
    • This includes two children under two who are siblings of older children

Childcare license application process in Colorado

Before proceeding with the application, you must determine which license type applies to the care you want to provide. Since the entire licensing process can take up to 90 days, the Colorado Office of Early Childhood suggests submitting your childcare license application at least 60 to 90 days before the date you plan to start providing care. Here are the steps for non-home and family child care license applications. 

Non-home childcare license application process

Step 1: Create a username and password in the Provider Hub 

This is where you submit your online application and fee. You also have the option to mail in a paper application; however, it's recommended that providers apply via the website for faster processing.

Step 2: Review the childcare licensing requirements and regulations

It is mandatory for all non-home childcare facilities to thoroughly review and understand the child care licensing rules and regulations provided by the CDHS. 

• General Rules Regulating Child Care Facilities
• Rules Regulating Special Activities
• Colorado Child Care Assistance Program (CCCAP) (for providers who accept CCCAP)

It's important to note that each type of childcare facility has its own licensing rules, so it’s crucial to review the specific licensing rules applicable to your particular license type, outlined below.

• Child Care Centers (less than 24 hours)
• School-Age Child Care Centers
• Resident Camps
• Neighborhood Youth Organizations 
• Day Treatment Centers

Step 3: Get a federal employer identification number (EIN)

Colorado requires an EIN for a non-home childcare facility. Please visit the IRS website to receive one before beginning the application process.

Step 4: Complete the non-home care application

Complete and submit the non-home care application via mail or the online provider hub. Include the nonrefundable application fee, which varies by facility type and capacity. Licensing fees can be paid via credit card, e-check, check, or money order and are as follows:

• Max capacity: 5-15 children, $200
• Max capacity: 16-30 children, $175 + $3 per child
• Max capacity: 31+ children, $300 + $3 per child

Step 5: Prepare for the licensing inspection

Collect the required materials to be reviewed at the initial licensing inspection. This includes:

• Additional authorizations, such as zoning, fire safety, and sanitation, which are needed before being approved for your childcare license. Although you don’t need to submit the documentation with your application, these activities must be completed in order to be licensed. Your licensing specialist will review these authorizations with you during your original licensing inspection
• Complete your pre-service and orientation training before your initial licensing inspection
• Complete criminal background checks and fingerprinting. The criminal background checks and child abuse and neglect records check are $35 each

Step 6: Schedule your initial licensing inspection

After you submit your application, you’ll be contacted by your licensing specialist to answer additional questions and schedule your licensing inspection. During this inspection, they’ll review all required materials, background checks, and verify compliance.

Family child care home license application process

Step 1: Create a username and password in the Provider Hub 

This is where you submit your online application and fee. You also have the option to mail in a paper application; however, it's recommended that providers apply via the website for faster processing.

Step 2: Review the family child care home licensing requirements and regulations

It is mandatory for all family child care facilities to thoroughly review and understand the child care licensing rules and regulations provided by the CDHS. 

• General Rules Regulating Child Care Facilities
• Licensing Rules Regulating Family Child Care Homes
• Rules Regulating Special Activities

During this step, you should also ensure you’re in compliance with local zoning, building and planning ordinances, and any homeowner association covenants.

Step 3: Complete the family child care home application

Complete and submit the family child care home application via mail or the online provider hub. Include the nonrefundable application fee, which varies by facility type and capacity. Licensing fees can be paid via credit card, e-check, check, or money order and are as follows:

• Family Child Care Home: 1-6 children, $65
• Family Child Care Home: 3 children under 2 years, $65
• Infant/Toddler Home: $65
• Large Family Child Care Home: 7-12 children, $100
• Experienced Child Care Provider (ECCP): $100

Experienced Family Child Care Home Providers (ECCP) must also complete and include this acknowledgment with their application.

Step 4: Prepare for the licensing inspection

Collect the required materials to be reviewed at the initial licensing inspection. This includes:

• Additional authorizations, such as zoning, fire safety, and sanitation, which are needed before being approved for your childcare license. Although you don’t need to submit the documentation with your application, these activities must be completed in order to be licensed. Your licensing specialist will review these authorizations with you during your original licensing inspection
• Complete your pre-service and orientation training before your initial licensing inspection
• Complete criminal background checks and fingerprinting. The criminal background checks for the CBI and FBI are $49.50 per person and the child abuse and neglect records check is $35 each. This is also required for all adults living in the home and adult employees living outside the home ages 18 and older
• Every person living in the home must have an initial health evaluation completed by a health professional

Step 5: Schedule your initial licensing inspection

After you submit your application, you’ll be contacted by your licensing specialist to answer additional questions and schedule your licensing inspection. During this inspection, they’ll review all required materials, background checks, and verify compliance.

Once you’ve met all the requirements, you can move on to planning out all the tools you’ll need to keep your operations in order, such as software like brightwheel's center management platform. Save time on administrative tasks and streamline your record keeping, admissions, and reporting, all in one centralized app.

How to stay compliant with a daycare license in Colorado

To continue a daycare license in Colorado, you must submit a continuation form and fee annually. The Division of Early Learning and Licensing Administration (DELLA) sends continuation notices 90 days before your license anniversary date. The form can be accessed in the CDEC's provider hub, which also acts as an access point for licensing, attendance tracking, and more. Additionally, to remain compliant with licensing regulations, stay current on all required training and certifications.

Funding resources for your childcare business

As you go through the licensing process, you may come across grants or other funding resources that can help fund your childcare business. A grant is an often overlooked financial resource given by a government agency or private foundation that does not need to be repaid. This makes them an attractive funding option if you are looking to expand or enhance the quality and accessibility of your program.

Grants provide funding that can be used towards a variety of purposes, such as improving facilities, purchasing new equipment or materials, or offering professional development opportunities for staff. The available resources vary by state so it is crucial to research and understand the grants for childcare providers in Colorado to make informed decisions about which ones to apply for.

Take the leap and open your daycare in Colorado

Childcare centers are an essential service for families but also provide immense value to children as they learn and develop. Opening a daycare business can also be a financially rewarding opportunity for you and your career. With careful preparation, you can secure the appropriate childcare license for your program and move on to the next stage of your business.