How to Start a Daycare in Tennessee

Starting a daycare is a big undertaking that requires careful planning. Follow this guide to learn more about Tennessee's childcare licensing requirements so you can stay in compliance with the Tennessee Department of Human Services' regulations and provide the children in your community with the best care possible.

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Do I need a childcare license in Tennessee?

The Tennessee Department of Human Services requires that providers obtain a license to provide child care to five or more unrelated children for three or more hours per day. Tennessee's regulations for childcare services help educators provide quality care to the children in their community.

There are four types of childcare businesses regulated by Tennessee's Department of Human Services:

• Childcare centers: Provide care for 13 or more children
• Family childcare homes: Provide care for five to seven unrelated children and up to five children who are related to the primary caregiver in the caregiver's home
• Group childcare homes: Provide care for eight to twelve children in the caregiver’s home. Up to three additional school-age children may receive care before and after school, on school holidays, on snow days, and during summer vacation
• Drop-in childcare centers: Provide care for 15 or more children for up to 14 hours per week, from Monday to Friday. Drop-in centers can also provide up to six additional hours of care on Sundays. These guidelines do not apply to snow days

The Tennessee Department of Human Services does not require licensure if care is provided in a child's own home, care that operates for less than three hours a day, or care that is provided for fewer than five unrelated children.

Childcare centers that provide care for more than five unrelated children must be certified or licensed unless they fall into an exempt category.

Childcare licensing requirements in Tennessee

Whether you are starting a preschool at home or operating a center-based program, before starting a daycare center, you must satisfy all of the Tennessee Department of Human Services' licensing requirements to receive the proper license for your childcare business.

Background checks

Background checks are required for anyone who owns or operates a daycare, applies to work in a daycare, or provides substitute services for more than 36 hours in a calendar year while being counted in the staff-to-child ratio. Individuals who are at least 15 years old and reside in a home-based daycare also require a background check.

New background checks are required when a new staff member has been unemployed from a childcare provider for more than 180 consecutive days.

Background checks are required for all staff at least every five years.

Childcare center licensing requirements

There are specific licensing rules that childcare centers must meet in order to obtain a license. These include certain provider qualifications, ratio and capacity requirements, and other health and safety rules. 

Director qualifications

Childcare center directors are responsible for hiring and training qualified employees, supervising their staff, and managing staff performance. Directors also make sure the childcare center is operating efficiently.

Childcare center directors must be at least 21 years old and meet the following educational and training requirements:

• One educational requirement:
  • Have graduated from an accredited four-year college
  • Be a registered nurse with less than a four-year degree and one year of full-time experience with children in a group setting
  • Have completed 36 hours of required coursework, with at least 30 hours in business management, child or youth development, early childhood education, or a closely related field, and have two years of full-time experience with children in a group setting
  • Have a Tennessee Early Childhood Administrator Credential
  • Have a high school diploma, a Tennessee Early Childhood Training Alliance Certificate for 30 clock hours of Administrator Orientation training, and four years of full-time experience with children in a group setting
  • Be ​​continuously employed as an on-site childcare director or a childcare agency owner
• Two training requirements:
  • A childcare agency orientation session during the pre-licensure period
  • Small Business Academy training through the Child Care Resource and Referral Agency
  • Licensing rules and regulations training
  • Shaken baby/abusive head trauma training prior to contact with children
  • Pre-service training
  • Sudden infant death syndrome training prior to contact with children if caring for infants

Assistant director qualifications

Childcare center assistant directors must be at least 18 years old and have a high school diploma or equivalent and two years of childcare experience. Assistant directors must meet the following training requirements:

• A childcare agency orientation session during the pre-licensure period
• Licensing rules and regulations training
• Shaken baby/abusive head trauma training prior to contact with children
• Pre-service training
• Sudden infant death syndrome training prior to contact with children if caring for infants

Educator qualifications

Childcare center educators must be at least 18 years old and have a high school diploma or equivalent if they are the only educator for a group to meet group requirements. Educators must meet the following training requirements:

• Licensing rules and regulations training
• Shaken baby/abusive head trauma training prior to contact with children
• Pre-service training
• Sudden infant death syndrome training prior to contact with children if caring for infants

Staff-to-child ratios

Childcare centers must maintain the following staff-to-child ratios and maximum group sizes determined by the Department of Human Services:

Adult-to-child ratios must be maintained at all times, however, ratios can be relaxed during naptime but one adult must be awake and supervising the children in each nap area (infant and toddler ratios must be maintained). When more than 12 children are on the premises, a second adult must be physically available on the premises.

Facility requirements

Licensed childcare centers must maintain specific facility requirements:

• The maximum number of children who may be present inside a physical space will be determined by the minimum square footage requirements
• A minimum of 30 square feet of useable indoor play space for each child
• Each nap room must contain at least 30 square feet of floor space per child
• Individual cubbies, hooks, or containers must be provided for each child’s belongings

Family childcare home licensing requirements

Family childcare home providers must meet specific licensing requirements including educational and training qualifications and ratio and capacity requirements.

Primary educator qualifications

Primary educators at family childcare homes are responsible for selecting qualified and capable staff, supervising, training, evaluating, and managing staff, and providing written policy to staff that includes job functions, qualifications, lines of authority, staff performance evaluations, and disciplinary processes.

To become a primary educator at a family childcare home, you must be at least 18 years old and have a high school diploma or equivalent if you are the only educator for a group. You must complete a childcare agency orientation session, pre-service training, training during the first 120 days of licensure, and annual training.

Educator assistant qualifications

To become an educator assistant at a family childcare home, you must be at least 16 years old. You must complete pre-service training, training during the first 120 days of licensure, and annual training.

Staff-to-child ratios and group sizes

Family childcare homes must maintain staff-to-child ratios and group sizes at all times while children are on the premises, including outdoors and on the playground. Staff-to-child ratios and group sizes include children receiving care and children related to the primary educator who are under nine years old.

Facility requirements

Licensed family childcare homes must meet specific facility requirements:

• The maximum number of children who may be present inside a physical space will be determined by the minimum square footage requirements
• If the number of children exceeds seven at one time or care is provided in one room of the home, the area must provide 30 square feet of usable play space per child

Group childcare home licensing requirements

Group childcare home providers must meet specific licensing requirements including educational and training qualifications and ratio and capacity requirements.

Primary educator qualifications

Primary educators at group childcare homes are responsible for selecting qualified and capable staff, supervising, training, evaluating, and managing staff, and providing written policy to staff that includes job functions, qualifications, lines of authority, staff performance evaluations, and disciplinary processes.

To become a primary educator at a group childcare home, you must be at least 18 years old and have a high school diploma or its equivalent. You must complete pre-service training, training during the first 120 days of licensure, and annual training.

A primary educator can’t be employed at any other job during the hours of operation unless the Department of Human Services has approved their employment in a program sponsored or recognized by the department.

Educator assistant qualifications

To become an educator assistant at a group childcare home, you must be at least 16 years old. You must complete pre-service training, training during the first 120 days of licensure, and annual training.

Staff-to-child ratios

Group childcare homes must maintain staff-to-child ratios and group sizes at all times while the children are on the premises, including outdoors and on the playground.

Staff-to-child ratios and group sizes include children receiving care and children related to the primary educator who are under nine years old.

Facility requirements

Licensed group childcare homes must maintain specific facility requirements:

• If four or more infants/toddlers are receiving care at a group childcare home, they must have separate and distinct space and their own educator
• The maximum number of children who may be present inside a physical space will be determined by the minimum square footage requirements
• A minimum of 30 square feet of usable play space must be provided for each child

Drop-in center licensing requirements

Drop-in center providers must meet specific licensing requirements including educational and training qualifications and ratio and capacity requirements.

Director qualifications

A drop-in childcare center may operate without an on-site director for no more than 60 days total within the licensing year.

To become a director at a drop-in childcare center, you must be at least 21 years old, have a high school diploma or equivalent, and have one year of experience. You must complete pre-service training, training during the first 120 days of licensure, and annual training.

Educator qualifications

To become an educator at a drop-in childcare center, you must be at least 18 years old and have a high school diploma or equivalent. You must complete pre-service training, training during the first 120 days of licensure, and annual training.

Staff-to-child ratios

Drop-in childcare centers must maintain staff-to-child ratios determined by the Department of Human Services.

The staff-to-child ratio of a multi-age grouping is determined by the age of the majority of the children in the group. If there is an even number of children, the ratio is determined by the age of the youngest child in the group.

Childcare license application in Tennessee

To obtain a childcare provider license you must follow specific procedures which are summarized below.

Step 1: Contact the Department of Human Services pre-licensure unit

Contact the Department of Human Services pre-licensure unit at childcareprelicensure.dhs@tn.gov or 615-906-0517. A program specialist will walk you through the pre-licensure process. If any grants are available that require you to participate in the Child Care Certificate Program (CCCP), CCCP paperwork will be provided and explained.

Step 2: Complete orientation and training

A program specialist will register you for orientation/intake training and send you a WebEx link for the training, which is offered monthly. A program specialist will also send you Small Business Academy training information through the Child Care Resource and Referral (CCR&R) Network.

Step 3: Receive clearance from Choose Safe Spaces

Once training is complete, you will be assigned a program specialist who will request clearance for your childcare center's location from Choose Safe Places, a Tennessee Department of Health program that screens potential childcare locations for environmental hazards.

Step 4: Obtain a federal EIN, permits, and a background check

Your program specialist will guide you through obtaining a Federal Employer Identification Number (EIN), use and occupancy permit, business permit, and completing a background check.

Step 5: Determine your location’s capacity

Once your EIN application, permits, and background checks have been received and your location has been deemed safe by Choose Safe Places, your program specialist will determine your location's capacity and look for any obvious hazards or safety issues.

Step 6: Complete a fire and environmental inspection

If your location is deemed safe and suitable, your program specialist will request inspections to ensure that your location meets fire and environmental inspection standards. You must receive an approved inspection report before your childcare center can operate.

Step 7: Complete the application and submit the required fee

After inspection requirements have been met and approvals have been received, you will receive a licensing application from your program specialist. Complete the application and submit the required fee.

Step 8: Confirm that all requirements have been met

Your program specialist and a program manager will determine that all forms have been submitted and all requirements have been met.

Step 9: Apply for grants

If grants are available that you qualify for, you can send your information to ChildcareTennessee to receive information on applying. After the grant application has been reviewed by ChildcareTennessee, the grant will be approved or denied by a pre-licensure program manager. If you are approved for a grant, your program specialist will guide you through collecting additional documentation that you will need for a provisional license to be issued.

Step 10: Complete final walk-throughs and receive a provisional license

Your program specialist will conduct the first walk-through of your daycare's location. Your local field supervisor and licensing consultant will conduct the final walk-through of the location. If your center is compliant with all of the Department of Human Services’ rules and requirements and all required documentation and training have been completed, a recommendation will be made for provisional licensure approval. After you receive approval, you will be issued a provisional license.

Once you have received a provisional license, choose a name for your childcare center and create a marketing plan. When you're ready to enroll children in your daycare, you can use administrative software such as brightwheel's center management tool to create your admissions process, simplify paperwork, and maintain important records.

How to stay compliant with a daycare license in Tennessee

Follow these guidelines to keep your daycare in compliance with Tennessee's laws and regulations.

License renewal

Daycare licenses need to be renewed annually. To renew your license, complete an Application to Renew a License To Operate A Child Care Agency form and pay the required renewal fee.

Inspections

At least one unannounced inspection visit is made each quarter.

Childcare agencies are inspected four to six times annually, depending on the agency’s star rating. The Star Quality Program is a voluntary program that recognizes childcare agencies that exceed minimum licensing standards by issuing ratings. Agencies can receive a rating of one, two, or three stars. An agency must be open for one year before it can receive stars.

Licensed childcare agencies must also undergo annual evaluations, and they must post a report card of the results, and their renewal license, where families can see them. Your agency must be open for one year before it is assessed.

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

Final thoughts

Obtaining a childcare license is the first step to operating a high-quality program. Carefully review these instructions and the provided resources to ensure your program meets state requirements for licensure. With thorough planning, you can complete this necessary first step and begin providing childcare services in your community.