How to Start a Daycare in Texas: HHSC Child Care Licensing

Opening a daycare in Texas is a regulated process, but it's straightforward if you understand the requirements. The Texas Health and Human Services Commission (HHSC) oversees all child-care licensing under Title 26, Texas Administrative Code, Chapters 745 and 746. This guide walks you through the types of operations, eligibility requirements, and the step-by-step path to getting licensed.

Understand the Four Types of Child-Care Operations in Texas

Texas law recognizes four distinct child-care operation types, each with different licensing requirements and capacity limits. Choosing the right type depends on how many children you want to care for and the level of regulation you're willing to undergo.

Licensed Child-Care Center

A licensed center cares for children at a facility and is regulated by HHSC. This is the most formal operation type. Centers are required when you plan to care for more than the capacity of a registered home. Centers must comply with all state regulations regarding staffing, facilities, health, and safety standards. This is the path if you want to scale your operation or work with multiple employees.

Licensed Child-Care Home

A licensed child-care home operates from a residential property and is run by a primary caregiver. According to 26 TAC 745.37, you must check the current HHSC chart for exact capacity limits, as the rules specify different numbers of children based on age and whether you have additional school-age children. Licensed homes are subject to pre-licensing inspection and ongoing compliance requirements but offer more flexibility than centers if you operate as a solo provider.

Registered Child-Care Home

A registered home is a smaller, less heavily regulated option. Under 26 TAC 745.37, a registered child-care home may care for up to 6 unrelated children (birth through age 13), plus a limited number of additional school-age children. Confirm the exact current limits with HHSC before proceeding, as rules can change. Registered homes have fewer regulatory requirements than licensed homes but must still meet basic health and safety standards and undergo a pre-licensing inspection.

Listed Family Home

A listed family home is the least regulated option. It may care for up to 3 unrelated children, with a total of 12 children including the caregiver's own children, all ages. Listed family homes are not routinely inspected. This option works only if you want to care for a very small number of children informally.

Check Your Eligibility and Personal Requirements

Before you start the licensing process, make sure you meet the basic personal and background requirements. HHSC will vet you thoroughly, so be prepared.

Education and Experience for Directors and Operators

If you plan to run a licensed child-care center licensed for 13 or more children, the director must be at least 21 years old with a high school diploma or equivalent and a combination of education and experience in child development or child care (26 TAC 746.1015). If you operate a center licensed for 12 or fewer children, different qualifications apply per 26 TAC 746.1017; check HHSC for the exact requirements. For licensed and registered homes, the primary caregiver must meet minimum age and education requirements; confirm current standards with HHSC.

Background Clearances Required

HHSC will require fingerprint-based background checks on you and all staff members. You must clear criminal history checks, and certain convictions will disqualify you from child care entirely. You will also need to clear a history check with the Texas Department of Family and Protective Services (DFPS). Any substantiated finding of abuse or neglect will bar you from licensing.

Fire and Health Clearances

Your facility must pass a fire safety inspection and a health inspection. These are non-negotiable. If you operate from your home, local fire marshals will inspect for emergency exits, smoke detectors, fire extinguishers, and other safety features. Health inspectors will review sanitation, food handling, and infectious disease prevention.

Step-by-Step Process to Get Licensed

The path to licensing involves several discrete steps. Work through each one in order and keep all documentation organized. The process takes time, so plan accordingly.

Step 1: Decide Your Business Structure

Before you apply for licensing, decide whether you will operate as a sole proprietor, partnership, LLC, or corporation. Most small home-based daycare operators use a sole proprietorship or single-member LLC. If you form an LLC, file a Certificate of Formation with the Texas Secretary of State (filing fee: $300). If you operate under an assumed name (a name different from your own), file an assumed name certificate. An LLC files it with the Secretary of State (fee: $25); a sole proprietor files it with the county clerk. Visit the Secretary of State website at https://www.sos.state.tx.us/corp/index.shtml for forms and filing instructions.

Step 2: Secure Your Physical Location

Whether you operate from a home or rent a commercial space, the facility must meet HHSC standards. For home-based operations, your residence must have adequate space for the number of children, appropriate lighting and ventilation, working plumbing and bathrooms, and secure storage for hazardous materials. For centers, you may need to lease or purchase a building specifically designed or retrofitted for child care. Do not sign a long-term lease until you have confirmed that the space meets HHSC requirements; some landlords are unfamiliar with child-care regulations and their property may not comply. Visit HHSC at https://hhs.texas.gov/services/child-care to review facility standards.

Step 3: Complete the Pre-Application Consultation

Contact your local HHSC regional office and request a pre-licensing consultation. Ask HHSC what pre-application steps and requirements apply to your location and operation type. This conversation is critical. Do not skip this step; it will save you time and money by preventing costly mistakes.

Step 4: Gather Documentation and Complete the Application

HHSC will require an extensive application packet. Ask HHSC for the current required documentation list, and check the HHSC fee schedule for the current application fee, as these change periodically. Submit everything to your regional HHSC office.

Step 5: Undergo the Pre-Licensing Inspection

Once HHSC receives your complete application, they will schedule a formal pre-licensing inspection. An HHSC inspector will visit your facility and verify that it meets all health, safety, and developmental standards. They will check everything from fire exits to hand-washing stations to the availability of age-appropriate materials. You must pass this inspection to receive a license. If the inspector finds deficiencies, you will have an opportunity to correct them and request a follow-up inspection.

Step 6: Receive Your License

Once you pass the pre-licensing inspection and HHSC is satisfied with your application and facility, you will receive a child-care license. The license will specify your operation type, the number and ages of children you may care for, and any special conditions. Display the license prominently in your facility.

Facility and Staffing Requirements

HHSC has detailed standards for both physical facilities and staffing. Meeting these standards is essential to getting licensed and staying licensed.

Facility Standards

• Space: Every child must have adequate usable floor space. Specific square footage requirements depend on your operation type and the ages of children in care. Check with HHSC for current standards.
• Bathrooms and Hand-Washing: Facilities must have accessible bathrooms and hand-washing stations. Ask HHSC about any toilet and sink requirements for younger children.
• Sleeping Areas: If children will nap, you must provide a safe, clean sleeping area separate from active play areas.
• Safety: Facilities must have working smoke detectors, fire extinguishers, emergency lighting, clearly marked exits, and a written emergency evacuation plan. All hazardous materials must be stored securely, out of children's reach.
• Toys and Materials: All toys and materials must be age-appropriate, in good condition, and sanitized regularly. Choking hazards must be kept away from infants and toddlers.
• Outdoor Space: If you provide outdoor play, the area must be fenced, free of hazards, and supervised at all times.

Staffing Qualifications

Staff-to-child ratios and caregiver qualifications vary by the ages of children in your care and your operation type. For centers, HHSC sets specific ratios in 26 TAC 746. For homes, primary caregiver requirements are less stringent than for centers, but the caregiver must meet minimum education and training standards. All staff must pass background checks. Confirm current staffing requirements with HHSC, as they change occasionally.

Common Mistakes to Avoid

Learning from others' errors can save you time and heartache.

• Starting before you're licensed: Do not operate a child-care business without a valid HHSC license, even informally or for family friends. Operating without a license is illegal and creates liability for you.
• Choosing a facility before consulting HHSC: Do not lease a space and then ask if it meets requirements. Get HHSC's approval in writing before signing any long-term agreement.
• Assuming your background is clear: Even minor criminal records can disqualify you. If you have any criminal history, discuss it with HHSC early in the process.
• Skipping the pre-application consultation: This is your chance to ask questions and get guidance directly from HHSC. Use it.
• Not budgeting for ongoing compliance: Licensing is not a one-time cost. You must renew your license, pass regular inspections, maintain insurance, and keep staff trained. Factor these costs into your business plan.
• Overcounting your capacity: Do not care for more children than your license permits. This is grounds for license revocation.

Expected Timeline and Results

The time from application to license varies, and some facilities take longer if deficiencies must be corrected. HHSC does not publish a guaranteed timeline, so plan accordingly and avoid setting a firm opening date until you have your license in hand.

Once licensed, you will be subject to routine and unannounced inspections. Your license must be renewed periodically; check HHSC for renewal timelines and fees. Compliance is ongoing; failure to meet standards can result in license suspension or revocation.

Tips for Success

• Start early: The licensing process takes time. Begin now, even if you do not plan to open immediately.
• Attend HHSC training: HHSC and regional child-care resource agencies offer training on licensing standards. Attend these sessions before you apply.
• Join a professional organization: The Texas Child Care Association and local child-care provider networks offer support, training, and advocacy. Membership is valuable.
• Get professional liability insurance: Child-care insurance protects you in case of injury or allegations. It is not legally required but is strongly recommended.
• Document everything: Keep detailed records of staff qualifications, health inspections, incident reports, and parent communications. Thorough documentation is your defense if questions arise.
• Stay current on rule changes: Child-care regulations change. Subscribe to HHSC updates and check their website regularly to stay informed.

Resources and Next Steps

To get started, visit the Texas Health and Human Services Commission child-care licensing page at https://hhs.texas.gov/services/child-care. You will find:

• HHSC child-care licensing information and forms
• Regional office contact information for your area
• Current fee schedules and application requirements
• Links to state rules (26 TAC, Chapters 745 and 746)
• Training resources and provider support

Contact your local HHSC regional office to request a pre-licensing consultation and ask questions about your specific situation. They are the authoritative source for current requirements, rule changes, and timelines.

Disclaimer

This article is informational only and does not constitute legal, tax, or business advice. Child-care licensing requirements are complex and subject to change. Before you open a child-care business, consult with a qualified attorney and a CPA who understands Texas child-care operations. Verify all fees, requirements, and timelines directly with the Texas Health and Human Services Commission, as regulations and agency practices may have changed since this article was written. Confirm all capacity limits and staffing requirements with HHSC before making business decisions.