Everything You Need to Know About Starting and Running a Daycare in Alabama (2025 Edition)
Starting a daycare in Alabama requires careful planning, compliance with state regulations, and a focus on creating a nurturing environment for children. By understanding the legal requirements and leveraging available resources, you can set your daycare up for success and make a meaningful impact in your community.
Why Start a Daycare in Alabama?
Alabama offers a growing market for childcare services, with many families seeking reliable daycare centers. Operating a daycare in this state not only allows you to make a difference in children’s lives but also provides a steady source of income. Additionally, Alabama’s supportive business environment and resources make it easier for entrepreneurs to start and sustain a daycare business.
Licensing Requirements for Daycare Centers in Alabama

In Alabama, the Department of Human Resources (DHR) oversees the licensing and regulation of daycare facilities. Whether you’re opening a small family daycare or a large childcare center, you’ll likely need to obtain a license. Below are the key steps and considerations:
- Determine If You Need a License:
- A license is required for any facility providing care for more than six children who are unrelated to the caregiver.
- Exemptions include church-operated programs and certain educational institutions. However, exempt programs must still register with DHR and comply with specific regulations.
- Application Process:
- Complete the licensing application through the Alabama DHR website.
- Submit the required documentation, including proof of ownership or lease, floor plans, and a detailed description of your program.
- Pay the applicable licensing fee.
- Background Checks:
- All staff and household members (for in-home daycares) must undergo comprehensive background checks and fingerprinting.
- Pre-Licensing Inspection:
- Your facility will be inspected for compliance with safety, health, and operational standards. Be prepared to address any required corrections before obtaining your license.
Regulations for Daycare Operations in Alabama

Operating a daycare involves meeting specific regulations to ensure the safety and well-being of children. Below are some of the key areas to focus on:
- Staff-to-Child Ratios:
- Infants (0-18 months): 1 caregiver per 5 children
- Toddlers (18 months-2.5 years): 1 caregiver per 7 children
- Preschool (2.5-4 years): 1 caregiver per 11 children
- School-age (5 years+): 1 caregiver per 18 children
- Health and Safety Standards:
- Maintain a clean and sanitary environment, including safe drinking water, proper food handling, and regular cleaning of toys and equipment.
- Childproof the facility with outlet covers, secured furniture, and restricted access to hazardous materials.
- Emergency Preparedness:
- Establish a written emergency plan for fire, severe weather, and other potential crises.
- Conduct regular fire and safety drills.
FAQs About Starting a Daycare in Alabama
- How much does it cost to start a daycare in Alabama?
- Startup costs can vary widely depending on the size of your daycare and location. Expect to invest in licensing fees, equipment, staff salaries, and facility improvements.
- Do I need a degree to open a daycare?
- No, Alabama does not require daycare owners to have a degree, but staff must meet certain qualifications depending on their role.
- Can I run a daycare from my home?
- Yes, home-based daycares are allowed in Alabama, but they must adhere to the same licensing and safety standards as center-based facilities.
Resources for Daycare Providers in Alabama
- Alabama Department of Human Resources (Child Care Services): Comprehensive information on licensing, regulations, and resources.
- Alabama Secretary of State: Business registration and LLC formation.
- Childcare Aware of America: National resource for childcare providers.
- IRS EIN Application: Obtain your EIN online.
Final Thoughts
Starting a daycare in Alabama requires careful planning, compliance with state regulations, and a focus on creating a nurturing environment for children. By understanding the legal requirements and leveraging available resources, you can set your daycare up for success and make a meaningful impact in your community.
If you found this guide helpful, check out our other state-specific guides on opening and operating daycare centers across the United States!
My name is Nick Caucci and I help run the Rentroom blog. Over the years, I have seen and helped many different property managers and owner-operators streamline their daily, weekly, monthly, and yearly workflows.