How to Start a Daycare in Wisconsin

If you love caring for young children, starting a daycare business in Wisconsin can be a lucrative and fulfilling venture. You can turn your passion for working with children into a successful business with the proper resources.

Before opening your center you’ll need to learn more about childcare licensing requirements in your area. Whether you operate your childcare business in a home or a commercial facility, you must obtain different licenses to ensure you are providing a safe learning environment for young children.

We’ve compiled this comprehensive guide to help you navigate the licensing requirements in Wisconsin. We’ll elaborate on the different types of daycare licenses, the application process, and how to stay compliant.

Do I need a childcare license in Wisconsin?

The Wisconsin Department of Children and Families regulates childcare licensing in Wisconsin. According to the department, you must obtain a childcare license to operate a daycare in Wisconsin if you care for four or more children under seven years old for less than 24 hours.

However, there are some exceptions. The following are exempted from obtaining a license to operate a childcare business in Wisconsin:

• A child’s relative such as a parent, sibling, or cousin
• Public and parochial schools
• Individuals providing childcare services at a child’s home for not more than 24 hours daily
• Counties, cities, towns, school districts, and libraries providing children programs intended for social or recreational purposes
• Programs operating not more than four hours per week
• A group lesson intended to develop a talent or skill. Examples include dance, music, and social group meetings
• A program where the parents are on the premises engaged in shopping, recreation, or other non-work activities
• Seasonal programs of ten days or less duration in any three months, including day camps, vacation Bible school, and holiday childcare programs
• Emergency situations
• Care and supervision for no more than three hours a day while the parent is employed on the premises

The department provides licenses for three childcare program types:

• Family child care centers: Provide care for four to eight children unrelated to the provider for less than 24 hours daily at the provider’s home

• Group child care centers: Provide care for nine or more children unrelated to the provider for less than 24 hours daily at the provider’s home

• Day camps for children: Provide care for four or more children age three or older in a seasonal outdoors-oriented program for less than 24 hours a day

Childcare regulation fees vary from county to county. You can contact your local certification agency for specific information for your location. The licensing and certification fees for Milwaukee County can be found here.

Childcare licensing requirements in Wisconsin

In addition to having a childcare business plan, you must also comply with state licensing requirements whether you are opening a center-based program or starting a preschool at home. Here are the licensing requirements for childcare programs in Wisconsin.

Family Child Care Centers

Provider requirements

A provider must:

• Be physically, mentally, and emotionally able to care for all children
• Be at least 18 years old
• Complete three credits in early childhood education or a department-approved, non-credit course in early childhood education and a non-credit, department-approved course in operating a childcare business or a course for credit in business or program administration
• Have the Wisconsin family childcare credential
• Have a child development associate credential in family child care

Staff to child ratios

• The maximum number of children one provider may care for is specified in the table below.
• If group size or age distribution exceeds the number one provider can care for, an additional qualified provider shall be present. For example, if three children under two years old are present at one time and five children between two and six years old present, a second provider is required.

Initial licensing fees

• $60.50 every two years
• Six-month probationary license fee of $15.12

License continuation

• $60.50

Group Child Care Centers

Provider requirements

A child care worker, center administrator, center director, and volunteers must:

• Be physically, mentally, and emotionally able to care for all children
• Have training in shaken baby syndrome and abusive head trauma and appropriate ways to manage crying, fussing, or distraught children before beginning to work with children under 5 years old
• Have training in cardiopulmonary resuscitation

The provider may act as an administrator or delegate the role to a qualified person.

An administrator must:

• Be at least 21 years old
• Have completed high school or its equivalent
• Have all of the following: One year of experience as a manager or satisfactory completion of a department−approved course in business or program administration; one year of experience as a center director, as a child care teacher in a group child care center or kindergarten, or as a licensee of a family child care center or satisfactory completion of a non−credit, department−approved course or of a course for credit in early childhood education or its equivalent
• Have completed at least 10 hours of training in supervision or personnel management

A center director for a program licensed to serve 50 or fewer children must:

• Be at least 21 years old
• Have completed high school or its equivalent
• Have at least 320 hours of experience as a teacher or assistant teacher in a group child care center or other approved setting or have at least 320 hours of experience as a licensee of a family child care center
• Have completed at least one of the pre service training requirements

A center director for a program licensed to serve 51 or more children must:

• Be at least 21 years old
• Have completed high school or its equivalent
• Have at least two years of experience as a child care teacher or center director in a group child care center or other approved setting
• Have completed one of the pre service training requirements

A child care teacher must:

• Be at least 18 years old
• Have completed high school or its equivalent
• Have at least 320 hours of experience as an assistant child care teacher in a group child care center or other approved early childhood setting
• Complete one of the following: Two courses for credit in early childhood education or its equivalent; two non-credit department-approved courses in early childhood education; a certificate from The Registry indicating one is qualified as a child care teacher; a Wisconsin preschool credential; a Wisconsin infant-toddler credential; 48 credits from an institution of higher education with at least three credits in early childhood education or its equivalent; a one-year child care diploma in child care or early childhood education from an institution of higher education; an associate’s degree in early childhood education or child care from an institution of higher education; a child development associate credential; a certificate from the American Montessori Society, Association Montessori International, or Montessori Accreditation Council for Teacher Education; or a certificate from the Department of Workforce Development, Bureau of Apprenticeship Standards, as a child development specialist

An assistant child care teacher must:

• Be at least 18 years old and have satisfactorily completed one course for credit in early childhood education or its equivalent at an institution of higher education within six months after assuming the position or completed one non-credit department-approved course in early childhood education within six months of assuming the position
• Have satisfactorily completed an assistant child care teacher training program approved by the Wisconsin Department of Public Instruction

Volunteers and student teachers must:

• Complete at least one course for credit or one non-credit in a department-approved course in early childhood education before completing 240 cumulative hours of work as a volunteer
• Have training in child care programming and procedures

Staff to child ratios

Initial licensing fees

• Two-year fee of $30.25 and a two-year fee of $16.94 per child based on the licensed capacity
• A sixth-month probationary license fee of $7.56
• A non-refundable application fee of $45.68

License continuation

• $30.25 plus $16.94 per child, in a licensed capacity

Day Camps for Children

Provider requirements

Camp staff like the camp director, counselors, and volunteers must be physically, mentally, and emotionally able to care for all children.

A camp director must:

• Be at least 21 years old
• Have at least one of the following: The Wisconsin Afterschool and Youth Development Credential; a bachelor’s degree in outdoor education, recreation, coaching, juvenile justice, social work, psychology, child development, or education, or another camp-related field or two or more years of supervisory or administrative experience in an organized camp or children’s program

A counselor must:

• Be at least 18 years old
• Have a high school diploma or the equivalent

Staff-to-child ratio

All children in care must be assigned to a counselor. Here are the counselor-to-child ratios.

Initial licensing fees

• A two-year fee of $30.25 and a two-year fee of $16.94 per child based on the licensed capacity
• A sixth-month probationary fee of $7.56

License continuation

• $30.25 plus $16.94 per child, in a licensed capacity

Childcare license application in Wisconsin

Here are the steps to take when applying for a childcare center license in Wisconsin.

Step 1: Determine the type of childcare program you want to open

There are three childcare programs you can start: family child care center, group child care center, or a day camp for children. Each program type is different and has its own operation regulations. Contact your local Child Care Resource & Referral (CCR&R) agency if you need help selecting the right childcare program.

Step 2: Enroll in and complete the required entry-level training

Enroll in and complete the necessary entry-level training:

• Sudden Infant Death Syndrome (SIDS)
• Shaken Baby Syndrome and Abusive Head Trauma Prevention
• Introduction to the Childcare Profession (Module A)
• Fundamentals of Family Child Care
• Infant/Child Cardiopulmonary Resuscitation (CPR)
• Training in Child Abuse and Neglect

Step 3: Request an inquiry packet

Print and fill out the “Request for Child Care Licensing Inquiry Packets” form. The inquiry packet contains relevant information about your preferred program, such as the licensing regulation program and a child care business start-up worksheet, which you’ll fill in later. Remember to follow the instructions, then mail the completed request form and payment to the Wisconsin Department of Children and Families. 

Step 4: Complete background check

Wisconsin state regulations require all caregiver and non-caregiver employees to complete a mandatory fingerprint background check. Here’s a background checklist for new providers.

Step 5: Participate in Wisconsin Shares and YoungStar programs

The Wisconsin Shares and YoungStar programs offer assistance with startup costs and training to new providers. 

Step 6: Complete and submit the child care business startup worksheet

Complete and submit the child care business startup worksheet in your inquiry packet to YoungStar–Supporting Families Together Association (SFTA). SFTA will assign you a child care technical consultant to take you through the daycare startup process upon receiving your worksheet. They’ll also issue you the relevant license application form. The technical consultant will contact you to see if you meet all requirements. 

Step 7: Submit your application and wait for approval

With the help of a childcare technical consultant, complete and submit your application for license consideration. Mail the completed application form to a regional licensing office near you. The department will give you a six-month probationary license if they determine you’re eligible for a license. 

Obtaining a childcare license is one of the first steps to starting a daycare in Wisconsin. However, you need more than a license to run a successful business. You’ll need to choose the right daycare name and ensure that you have organized systems in place to manage your center. As part of your business plan, determine your marketing strategies that will help you successfully retain your families and extend your reach in the larger community. 

A tool like brightwheel’s center management feature consolidates all your operations in one centralized location, helping you easily manage your day-to-day tasks and expand your program when you’re ready. This software simplifies administrative tasks and streamlines your admission process, record keeping, and reporting.

How to stay compliant with a daycare license in Wisconsin

You can renew the probationary license once, which is valid for six months. Complete continuation forms provided by the department at least 30 days before the probationary license expires to obtain the regular license. 

You’re also required to pay the relevant fees and demonstrate compliance for license renewal. The regular license is valid indefinitely. However, the department will review a regular license every two years.

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

Start a daycare in Wisconsin

Starting a daycare in Wisconsin can be a lucrative and fulfilling venture. With careful planning and the right resources, you can navigate the licensing requirements with ease and focus on managing a successful business.