Applying for a Child Care Center License

Owning and operating a licensed child care center is not just an opportunity to work with young children. Child care centers provide an essential service to support parents and guardians of young children as well as the economy of the state of Minnesota. It is a business and therefore, comes with all the risks and responsibilities of owning a small business. The Minnesota Department of Employment and Economic Development (MN DEED) provides information and answers frequently asked questions related to starting a business in Minnesota.

A location with a valid mailing address must be secured before the child care center application is submitted.  

Child care center licensing laws in Minnesota have specific requirements related to the indoor facility and outdoor space where child care will be provided. For that reason, particular attention should be focused on ensuring that the physical location and facility meets the requirements in MN Rules, part 9503.0155 or that the facility can be renovated to meet them. It is highly encouraged that applicants consider all of the child care center licensing requirements, any enhancements to the facility to make the space suitable for group child care, usable square footage, the outdoor activity area, and the operation plan when choosing a facility and location.

The facility will also need to pass inspections by other agencies, such as zoning, health, fire and building inspections. While these inspections themselves will not be requested or occur until further in the application process, applicants will want to ensure the facility will be able to fulfil the inspection requirements. Local city or county agencies, architects, and building contractors may be a source of guidance in understanding inspection requirements and determining if the facility will pass inspections. The State Fire Marshal has created a resource showing the step-by-step process individuals can follow before a fire inspection is requested by DHS for a program in application. The Interagency Inspection Requests for DHS-Licensed or Certified Child Care Facilities can be found on the State Fire Marshal website

Legal authority: Minnesota Statutes, section 245A.10, subdivision 1; Minnesota Rules, part 9503.0155

The name and legal ownership structure of your child care center is an important step. You will need both of these determined before registering your business with the Minnesota Secretary of State. The legal ownership structure of the business has to do with how the business is legally set up with respect to financial stakeholders and business ownership liability. For example, will the child care center belong to one individual, be a partnership, a limited liability company, or a corporation? The business should also consider whether the structure is for-profit or not-for-profit. The way the business is structured may affect what types of loans or other sources of financing are available to the business. For more information, First Children’s Finance has helpful resources to review. A business attorney or accountant can provide individual guidance how to make these decisions. 

Legal authority: Minnesota Statues, section 245A.04, subdivision 1, paragraph (f), clause 3; Minnesota Statutes, section 245A.04, subdivision 1, paragraph (g)

Before a child care center license is granted by the Department of Human Services, all controlling individuals will need to complete the process of submitting a Department of Human Services background study request, and each background study must result in the issuance of a clearance notice. Who or what are your controlling individuals? (PDF) is a resource created by DHS to help applicants understand more about controlling individuals. More information about background studies will follow in Phase II of the application process (see below), and information about background study requirements can be found on the Background Studies website. 

Legal authority: Minnesota Statutes, section 245A.04, subdivision 3

The Department of Human Services has invested in establishing a resource through Child Care Aware to support child care capacity in Minnesota. Child Care Aware Wayfinder (childcarewayfinder.org) is a one stop navigation network for starting and growing programs.

• Parent Aware is available to help programs with improving quality in child care. Parent Aware provides resources and tools, including coaching to help programs achieve a quality rating
• Empower to Educate helps current and aspiring early childhood educators advance and sustain their career goals in child care.
• REETAIN bonuses help supplement income for early childhood educators as they work to establish a career in the field. REETAIN bonuses can be used for program supplies, professional development, or personal expenses.
• T.E.A.C.H. Early Childhood® MINNESOTA is a scholarship program that helps early childhood and school-age care providers increase their levels of education, compensation and commitment to the field by earning college credits and degrees.
• Child and Adult Care Food Programs (CACFP) reimburses child care centers for a maximum of two meals and one snack, or one meal and two snacks per day per child 12 years of age or younger. To participate, reach out to one of four sponsoring organizations, and they will help you sign up.
• Child Care Services Grants provide funds to help cover the cost of supplies, equipment, technology, and training. Grant funds are offered annually and are awarded on a competitive basis to qualified child care programs.
• Child Care Assistance Program (CCAP) is a state government program administered by local county or tribal governments that provides financial assistance to help families pay for child care.
• MMB Children's Cabinet provides child care and early learning information for families, providers, and communities.
• First Children’s Finance is a nonprofit organization that partners with DHS to provide resources to child care providers about business operations, staffing, finances, and more.
• Status of Child Care in Minnesota and Results of the 2018 Market Rate Survey provided by the MN Department of Human Services
• Think Small is a non-profit organization dedicated to supporting quality early learning and childcare. Think Small offers training and resources such as information on Pathways to Quality, applying for early learning scholarships, multilingual contact information and a resource library.
• Minnesota Department of Employment and Economic Development (DEED) is the state's principal economic development agency. DEED programs promote business recruitment, expansion, and retention; international trade; workforce development; and community development. A Guide To Starting a Business in Minnesota (PDF) provides guidance on the process of starting a business in Minnesota. Workforce Shortages in Minnesota's Early Learning Industry provides information on the early childhood workforce in Minnesota.
• Minnesota Secretary Of State - How to start a business in Minnesota provides information for those looking to start their own business in Minnesota, Minnesota Secretary Of State - How to start a business in Minnesota

Subscribe to child care licensing email updates

The licensed child care center email listserv provides information and updates from DCYF Licensing, including legislative changes impacting licensed centers. If you are the authorized agent for your center, you will automatically receive an email with the same information, so you do not need to sign up for this listserv.