How to Start a Daycare in Michigan

If you’re planning to open a childcare business in Michigan, the steps you need to take will depend on the type of childcare program you plan to start. This quick guide will provide information about the different types of childcare licenses in Michigan and the licensing requirements. 

Our guide will also provide information and resources needed to start the application process, from familiarizing yourself with the rules and regulations to meeting compliance standards and receiving your license.

Do I need a childcare license in Michigan?

To provide childcare services in Michigan, you must obtain a license from the Michigan Department of Licensing and Regulatory Affairs, Child Care Licensing Division (LARA). 

LARA administers licensing for three types of childcare organizations: childcare centers, group childcare centers, and family childcare homes. The license you receive will mainly depend on whether you’re starting a childcare program at home or in a building that is not a residence. Below, you’ll find a legal description for each childcare organization as defined by Michigan law. 

• A Child Care Center (CCC) is a facility, other than a private residence, that serves one or more children under 13 years of age less than 24 hours a day. Facilities that provide care for more than two consecutive weeks, regardless of the number of hours of care per day, are also considered child care centers and will require a childcare center license.
• A Family Child Care Home (FCCH) is a private home that serves between one and six children for less than 24 hours a day and doesn’t include children related to a household member. Instead, an FCCH is a home where care is given to an unrelated child for more than four weeks during a calendar year. 
• A Group Child Care Home (GCCH) is a private home that serves between seven and 12 unrelated children for less than 24 hours a day for more than four weeks. This capacity limit doesn’t include children related to an adult household member.

You can find the complete definitions of these types of licenses and the rules and regulations for each in the LARA Child Care Licensing Rules and Statutes site. Once you understand each and make a decision, you can start writing a business plan for your childcare program. 

Childcare licensing requirements in Michigan

The next step to starting a childcare business is to ensure that you’re eligible to be licensed. There are unique qualifications required to obtain a license and operate different types of childcare programs in Michigan. However, there are also general requirements that apply to any person applying for a childcare license. Those include:

• Be suitable to meet the needs of children
• Be able to ensure that services and facilities are conducive to the welfare of children
• Act in a manner that is conducive to the welfare of children
• Demonstrate a willingness and ability to comply with acts and rules set by the state

Provider requirements

Childcare centers

The director of a childcare center is required to meet the following requirements as a license applicant:

• Be at least 21 years of age
• Have earned a high school diploma or general equivalency diploma (GED)
• Have at least one of the following education credentials:
  • Bachelor’s degree or higher in early childhood education or child development
  • Bachelor’s degree or higher in a child-related field, including 18 semester hours in early childhood education or child development, and 480 hours of experience
  • Montessori credential, 18 semester hours in early childhood education or child development, and 480 hours of experience
  • Associate’s degree in early childhood education or child development, including 18 semester hours in early childhood education or child development, and 480 hours of experience
  • Valid Child Development Associate (CDA) credential with 18 semester hours in early childhood education or child development and 960 hours of experience
  • 60 semester hours with 18 semester hours in early childhood education or child development and 1,920 hours of experience

Family and group childcare homes

The director of family and group childcare homes is required to meet the following requirements as a license applicant:

• Be at least 18 years of age
• Have a high school diploma, general educational development (GED) certificate, or approved training track and hours for child care home providers through MiRegistry
• Permanently reside in the childcare home as a member of the household
• Have proof of certification for infant, child, and adult CPR and first aid
• Complete trainings in recognition and reporting of child abuse and neglect, and prevention and control of infectious disease
• Attend an orientation provided by the LARA Child Care Licensing Division

Ratio requirements

In addition to the provider requirements, there are also standards for staff-to-child ratios. The ratio will depend on the age of the children and will have a maximum group size. 

Childcare centers

• One staff member for four children (1:4)
• Maximum group size: 12

• One staff member for eight children (1:8)
• Maximum group size: 16

• One staff member for ten children (1:10) 
• Maximum group size: 30

• One staff member for 12 children (1:12) 
• Maximum group size: 36

• One staff member for 18 children (1:18)
• Maximum group size: 36

Family and group childcare homes

For family and group childcare homes, the ratio requirement is one childcare provider for every six children (1:6). For each staff member, no more than four children can be under the age of 30 months and no more than two of those four can be under 18 months old. 

The ratio must include all children who are not related to the provider. Any children under 6 years old who are children of the provider, children of a staff member or assistant, or children related to any member of the household by blood, marriage, or adoption must also be included in the ratio. 

Childcare license application in Michigan

The process of applying for a childcare license will differ depending on the type of program you are starting. LARA provides a step-by-step Resource Guide to Child Care Licensure in Michigan that details the application process. Here is a summary of the steps for a childcare center.  

Childcare centers

Step 1: Get familiar with the licensing rules

As a childcare provider, you’re required to comply with the rules and regulations outlined in  Licensing Rules for Child Care Centers and the Child Care Organizations Act. Take the time to familiarize yourself with the rules to understand the steps you’ll need to take to become compliant and operate a safe and healthy environment for children. 

Step 2: Choose a site location

The license you receive will be issued for a specific location and won’t be transferable, so choosing a site is essential before submitting your application. As you are searching for a site, consider different locations for their value when it comes to marketing your childcare business. For example, look for a place near a big neighborhood with lots of families. 

After you select a site, reach out to your local municipality to obtain approval to offer childcare services in the chosen location. As the applicant, you must comply with local zoning ordinances. You'll also need a fire inspection and lead risk assessment. In addition to making sure the facility is suitable for childcare, the site reviews will give you an idea of the potential repairs you'll have to make, allowing you to research the costs before committing. 

Step 3: Submit your application and fees

Once you’ve become familiar with the licensing rules and requirements and chosen a site, it’s time to submit your online application. To get started, you’ll create a MILogin account and select the necessary application for the type of childcare business you plan to operate. Throughout the application process, various forms and supporting documents will be requested for review and approval to satisfy your specific licensing process requirements. Some of the documents that may be requested include: 

• A staffing plan
• Program director qualifications 
• Documentation of negative tuberculosis tests for staff 
• Screening procedures for prior criminal convictions, abuse, or neglect of children for staff
• Staff training plan
• Documentation that staff have received CPR training 
• Discipline policy 
• Policy for nutrition and food 
• Schedule of operations
• Emergency evacuation plan

You can find more information on the types of supporting documentation that may be requested on the LARA website. You’ll also need to pay your licensing fee, which can range from $150-$300, based on the capacity of the childcare center.

Step 4: Get in touch with a licensing consultant

If you'd like to understand the overall process better or have questions, make an appointment with a licensing consultant, who can answer questions about licensing rules and regulations.

Step 5: Complete your environmental inspections

Many different preliminary site inspections will take place during the application process before you receive your license. These inspections will help ensure that the chosen location is a suitable and safe environment for child care. Some of these inspections include: 

• A fire safety inspection conducted by a qualified fire safety inspector. If you’re planning to operate in a new construction facility or have plans to renovate your chosen location, you must submit plans to the Bureau of Fire Services for a plan review. 
• An environmental health inspection conducted by the local health department. Review and send the Environmental Health Inspection Request form to the appropriate local health department. You can follow the steps at the top of the request form for a complete set of instructions about requesting a health inspection. The form also gives instructions on determining the appropriate health department for the county where your center is located. 
• A playground safety inspection conducted by a certified playground safety inspector (CPSI) to ensure that the playground equipment and the outdoor play area are compliant. You can visit the playground inspection webpage for more information on playground inspections and documentation of playground safety.
• A lead hazard risk assessment if your building was built before 1978. A certified lead risk assessor must complete the lead hazard risk assessment.

This list isn’t limited to the above inspections. You can find out more information about other potential site inspections here. Taking the time to complete the reviews listed above and others will make you aware of potential issues and the adjustments that need to be made early on. This may help speed up the application process, giving you time to make the necessary adjustments to comply with Michigan's childcare requirements. 

Step 6: Complete fingerprinting and background checks

All applicants, staff members, assistants, and unsupervised volunteers must be fingerprinted and pass a comprehensive background check. 

Step 7: Complete the required trainings

Staff members and unsupervised volunteers are required to complete specific trainings including an orientation, CPR, first aid, and health and safety trainings. 

Step 8: Pass your onsite inspection

A licensing consultant will conduct your onsite inspection. During the process, you’ll schedule an onsite review at a time that works for both parties. Your licensing consultant may take pictures during the inspection to document their findings.

Step 9: Receive your childcare license

After you've completed your application, submitted all the necessary inspection reports, passed your onsite assessment, and made the changes needed, LARA will determine if they should issue a license to you. 

Once they have determined that you are in compliance with all the regulations, you’ll receive a six-month original license. After six months, you will receive a renewal packet and your licensing consultant will conduct a renewal inspection. A regular license will be issued if the center is still in compliance, and that license is valid for two years.

Family and group childcare homes

The steps for a family or group childcare home are similar to the process for a childcare center. However, since these programs are located in a home, the building requirements are less intensive. Here is a summary of the steps for a family or group childcare license. 

Step 1: Submit your application and fees

Review the Licensing Rules for Family and Group Child Care Homes and the Child Care Organizations Act before submitting your application. Then, complete and submit your application online along with all the required documents. The online application requires a non-refundable fee of $50 for family homes and $100 for group homes. 

Step 2: Submit a medical clearance request

You and your physician must complete a medical clearance request, which can be found on the LARA Child Care Licensing Forms page. This form attests to your mental and physical health. 

Step 3: Complete the required training and certifications

There are several courses required for licensure that can be found on MiRegistry. Create an account and find the “Health and Safety Training for Licensed Child Care Providers” course. The “Safe Sleep Practices” course can also be found on MiRegistry. Infant, child, and adult CPR and first aid must also be received from an approved training organization. 

Step 4: Complete fingerprinting and background checks

Any and all applicants/licensees, childcare staff members and assistants, unsupervised volunteers, and adult household members must be fingerprinted and have a comprehensive background check. 

Step 5: Attend an orientation session

After all of your required documentation is received, you will be invited to attend a six hour licensing orientation. 

Step 6: Pass an onsite inspection

A licensing consultant will schedule an onsite inspection for your home. To prepare, you should use the Family and Group Child Care Home Compliance Record checklist to check for compliance with the rules.

Step 7: Receive your original license

If you are approved for a license, you will receive a six month original license. Prior to the original license’s expiration, you will receive a renewal application packet. After submitting the completed packet and a renewal fee, there will be another onsite inspection. If you are approved, you will receive a regular license that is valid for two years. 

How to stay compliant with a daycare license in Michigan

Once you have received your license, determined a name for your childcare program, and opened for business, you must remain compliant with childcare licensing rules and regulations. A tool like brightwheel’s center management feature helps you manage your program with ease by streamlining your admissions process, record keeping, and reporting.

Childcare centers

In order to stay compliant, a childcare center and its director and staff must maintain all requirements that are outlined during the application process. In addition, they must maintain a current license and complete renewals promptly. Other requirements to stay compliant include:

• Keeping the current license accessible and visible to all 
• Keeping a notice that the center requires a comprehensive background check on all employees and unsupervised volunteers accessible and visible to all 
• The actual number and ages of children in care at any time must never exceed the number and ages of children for which the center is licensed 
• Children shall only be released to persons authorized by the child’s parent or guardian
• Written approval from the LARA Child Care Licensing Division must be obtained before making any changes in the terms of the license, including but not limited to, adding use space, changing the capacity of the center, or changing age groups served
• The name, address, and telephone number for each child enrolled and each employee for at least two years after they leave the center must be kept on record
• Any licensee, licensee designees, childcare staff members, childcare aids, and unsupervised volunteers must all undergo comprehensive background checks and fingerprinting 
• All staff members and unsupervised volunteers must complete infant, child, and adult CPR and first aid trainings and the following trainings on MiRegistry within 90 days of being hired:
  • Administration of medication
  • Prevention of and response to emergencies due to food and allergic reactions
  • Building and physical premises safety
  • Emergency preparedness and response planning
  • Handling and storage of hazardous materials and appropriate disposal of biocontaminants
  • Precautions in transporting children, if applicable
  • Child development
• All staff members who work directly with children must complete 16 clock hours of professional development annually on topics relevant to job responsibilities

Family and group childcare homes

In order to stay compliant, family and group childcare homes and their directors and staff must maintain all requirements that are outlined during the application process. In addition, they must maintain a current license and complete renewals promptly. Other requirements to stay compliant include:

• The licensee must complete at least 10 clock hours of annual training related to child care and staff members and assistants must complete at least five clock hours annually
• Before caring for children, all staff members must complete training that includes information on:
  • Safe sleep practices to prevent sudden infant death syndrome
  • Recognition of and reporting child abuse and neglect
  • Prevention of shaken baby syndrome, abusive head trauma, and child maltreatment
• All staff must complete trainings on the following topics within 90 days of being hired or receiving a childcare license:
  • Child development
  • Administration of medication
  • Prevention of and response to emergencies due to food and allergic reactions
  • Handling and storage of hazardous materials and the appropriate disposal of biocontaminants
  • Precautions in transporting children
  • Building and physical premises safety
  • Emergency preparedness and response planning
• All staff CPR and first aid training certifications must be maintained 
• Maintenance of proper records for all employees and children that receive care

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 Michigan to make informed decisions about which ones to apply for. 

Start a daycare in Michigan

Understanding the application process, training requirements, and state regulations is the first step toward becoming a licensed childcare provider in Michigan. Planning ahead and using all of the resources at your disposal will support you in the journey to developing a great childcare business for your community.