How to Start a Daycare in Delaware: Office of Child Care Licensing Rules Under the Delaware Child Care Act (14 Del. C. 30A)

Starting a daycare in Delaware requires navigating state licensing requirements, business registration, and facility compliance standards set by the Delaware Office of Child Care Licensing (OCCL). Unlike an unlicensed family care arrangement, operating a daycare for compensation without a license is a violation that carries significant penalties. This guide walks you through the process step by step, along with the regulations you must follow.

Understand What Qualifies as Child Care Under Delaware Law

Under the Delaware Child Care Act (14 Del. C. Chapter 30A), child care is defined as care provided by an individual or entity for one or more children under 18 who are unattended by a parent or guardian, provided on a compensated basis, and held out to the public as child care. This broad definition covers three distinct categories of licensed providers:

• Family Child Care Homes: Care provided in a residential setting, typically by one caregiver.
• Large Family Child Care Homes: Care in a residential setting with higher capacity and staff requirements than family homes.
• Child Care Centers: Care provided in a non-residential facility or a facility designed specifically for child care.

If you operate any of these types of care and charge families for the service, you must have a license from the Office of Child Care Licensing. Providing unlicensed care is illegal in Delaware and can result in civil penalties up to $1,000 per violation, plus criminal penalties of up to $1,000 in fines or up to 6 months in jail.

Gather Required Materials and Documents Before You Start

Before you begin the licensing process, collect the following documents and complete these preliminary steps:

• Proof of a Safe, Appropriate Facility: Whether you plan to operate from a home or center, the facility must meet Delaware standards for safety, sanitation, and child development. The specific requirements for square footage, room capacity, outdoor space, and safety features are set out in Delaware's DELACARE regulations. You will need to confirm these requirements with OCCL before finalizing your facility selection.
• Criminal Background Check Authorization: Prepare to authorize and pay for criminal background checks (federal, state, and fingerprinting via the FBI and Delaware State Police) for yourself and any household members or staff who will be present.
• Good Character Documentation: Gather personal references, employment history, and any other documents that demonstrate your character, integrity, and fitness to care for children. OCCL will investigate your background as part of the licensing review.
• Proof of Delaware Business License Application: Prepare to apply for a Delaware Division of Revenue business license. If you are a licensed direct care worker or age 65 or older with anticipated annual receipts under $10,000, you pay one fourth of the standard business license fee. Otherwise, you pay the full annual fee for your license category (confirm the current rates with the Division of Revenue at https://revenue.delaware.gov/).
• Developmental and Social-Emotional Screening Plans: As of July 1, 2023, OCCL requires applicants to arrange and document developmental and social-emotional screening for enrolled children from birth to 5. You will need to identify how and where this screening will occur (through a pediatrician, early intervention program, or approved screening tool).

Step-by-Step Process to Obtain Your Daycare License

Step 1: Contact the Office of Child Care Licensing to Confirm Current Requirements

Before investing in a facility or submitting an application, contact the Office of Child Care Licensing, which operates within the Delaware Department of Education. OCCL sets and enforces specific requirements that are not fully spelled out in statute alone. You need to confirm:

• Exact capacity limits for family child care homes, large family child care homes, and child care centers.
• Child-to-staff ratios for different age groups (infant, toddler, preschool, and school age).
• Required training hours and certifications for staff (CPR, first aid, early childhood education qualifications).
• Specific facility standards (square footage per child, outdoor space, bathroom facilities, kitchen standards).
• Current license application fee (sources differ, and the fee is not set in statute).

OCCL regulations are published as DELACARE, the Delaware Administrative Code for Child Care. Confirm the current version and specific rules with OCCL directly rather than relying on secondhand summaries.

Step 2: Secure and Prepare Your Facility

Identify and lease or purchase a facility that will meet OCCL standards. If operating from a home, ensure it has:

• Adequate indoor and outdoor space per the current DELACARE requirements.
• Safe entry and exit routes with appropriate supervision areas.
• Bathrooms and handwashing stations accessible to children.
• Kitchen facilities (if you plan to serve meals) or a plan for catering/meal provision that complies with food safety rules.
• Secure storage for hazardous materials, cleaning supplies, and medications.
• Age-appropriate furniture, toys, and learning materials.
• Working smoke detectors, carbon monoxide detectors, and fire extinguishers.

Make any necessary renovations or improvements before submitting your application. OCCL will not issue a license until the facility passes inspection.

Step 3: Apply for a Delaware Business License (Division of Revenue)

Before or concurrent with your OCCL application, register your business with the Delaware Division of Revenue through Delaware One Stop. You will need to:

• Provide your business name (or registered trade name/DBA if operating under a name other than your own legal name).
• Choose your entity type (sole proprietor, LLC, corporation, etc.). This is separate from your daycare license; you may form an LLC with the Division of Corporations if desired, but it is not required by OCCL.
• Pay the annual business license fee for your category (check with the Division of Revenue for current rates and your applicable category).
• If you qualify as a licensed direct care worker or are age 65 or older with anticipated receipts under $10,000, you are eligible for a reduced fee (one fourth of the standard fee).
• Understand that you will owe quarterly or monthly gross receipts tax based on your license category. Note: Delaware has no sales tax; instead, licensed businesses pay a gross receipts tax at the rate set for their category.

Access the Delaware One Stop portal at https://onestop.delaware.gov to complete this registration.

Step 4: Arrange Criminal Background Checks for All Applicants and Household/Staff Members

OCCL requires criminal background checks as a condition of licensure. You must authorize and pay for fingerprinting and criminal history checks through the Delaware State Police and the FBI for:

• Yourself (the license applicant).
• Any household members (if operating a family child care home).
• All staff members who will be present in the facility.
• Any volunteers who will have unsupervised contact with children.

OCCL will review the results to ensure they align with Delaware's standards for good character and fitness to care for children. Begin the background check process as part of your application, since OCCL cannot issue a license until the required checks are completed and approved.

Step 5: Plan and Document Developmental and Social-Emotional Screening

As of July 1, 2023, Delaware requires that you arrange developmental and social-emotional screening for all enrolled children from birth to 5 years old. This screening must be documented in the child's file. You should identify:

• A licensed pediatrician, early intervention program, or approved screening tool that will conduct screenings.
• When screenings will occur (typically upon enrollment and at intervals set by your screening provider).
• A process for sharing results with families and referring children who may need further evaluation.

Confirm the current approved screening methods and providers with OCCL.

Step 6: Submit Your Licensing Application to OCCL

Prepare a complete application package and submit it to the Office of Child Care Licensing in the Delaware Department of Education. Your application must include:

• Completed application form (request the current version from OCCL).
• Proof of facility readiness (lease or deed, floor plan, documentation that the facility meets DELACARE standards).
• Authorization for background checks and the results once obtained.
• Proof of good character (references, employment history, personal statement).
• Curriculum, daily schedule, and child development plan.
• Staff qualifications and training documentation.
• Proof of Delaware business license registration or application.
• Plans for developmental and social-emotional screening.
• Proof of liability insurance (if required by your municipality or OCCL).
• Any other documents requested by OCCL.

Pay the application fee (confirm the current amount with OCCL, as it is not specified in statute).

Step 7: Pass OCCL Investigation and Facility Inspection

OCCL will investigate your application and conduct an unannounced or announced inspection of your facility. The investigation covers:

• Your character, integrity, and fitness to operate a child care facility.
• Confirmation that your home or facility meets all DELACARE standards for safety, health, and child development.
• Compliance with staff-to-child ratios, training requirements, and supervision standards.
• Accuracy and completeness of background check information.

Be prepared to address any deficiencies or answer questions about your qualifications and facility. OCCL may issue conditional approval pending correction of minor issues, or it may request additional information or improvements.

Step 8: Coordinate with the Division of Public Health Inspection Program

The Delaware Division of Public Health (DPH) runs a Child Care Inspection Program. Check with DPH and OCCL for how it works alongside your OCCL licensing review and what it covers. Ensure your facility and policies comply with DPH standards and cooperate fully with any DPH inspections.

Step 9: Receive Your License and Plan for Renewal

Once OCCL approves your application, receives satisfactory inspection results, and confirms compliance with all requirements, you will receive a license. Your license is valid for one year from the date of issue. To continue operating:

• Mark your renewal date on your calendar; the license expires 1 year after it is issued unless renewed, so confirm the renewal steps with OCCL well ahead of that date.
• Maintain compliance with all DELACARE standards year-round.
• Document all required screenings, staff training, and safety measures.
• Renew your Division of Revenue business license annually; it expires December 31.
• Stay current on all staff certifications, background checks, and regulatory training.

Materials and Requirements Checklist

Requirement	Where to Obtain / What to Do	Illustrative Sequence (not an agency timeline)
Contact OCCL for current standards	Delaware Department of Education, Office of Child Care Licensing	Week 1
Secure facility	Lease or purchase home or center space	Weeks 1-4
Renovate/prepare facility per DELACARE	Contractor or DIY improvements	Weeks 2-6
Register for Delaware business license	Delaware One Stop (onestop.delaware.gov)	Week 1-2
Background checks	Delaware State Police and FBI	Weeks 2-4
Arrange screening provider	Pediatrician, early intervention, or approved tool	Week 2-3
Prepare application package	Compile all required documents	Weeks 4-6
Submit OCCL application and fee	Office of Child Care Licensing	Week 6
OCCL investigation and inspection	Respond to OCCL requests and inspections	Weeks 7-10
DPH health inspection	Coordinate with Department of Public Health	Weeks 7-10
Receive license	OCCL issues one-year license	Week 10-12

Tips for Success

• Start Early with OCCL. Call or email the Office of Child Care Licensing before you commit to a facility or make large expenditures. OCCL staff can clarify requirements and help you avoid costly mistakes.
• Document Everything. Keep detailed records of your background check authorization, facility improvements, staff training, and any correspondence with OCCL and DPH. Licensing is built on documentation.
• Budget for Contingencies. Facility renovations, background check fees, and licensing fees add up quickly. Budget conservatively and plan for unexpected repairs or improvements OCCL may require.
• Hire and Vet Staff Early. If operating a center or large family home, begin recruiting staff well before your target opening date. Staff must also pass background checks, so initiate this process early.
• Know Your Category. Confirm whether you qualify as a family child care home, large family child care home, or child care center. Each has different staffing, training, and facility requirements. OCCL will clarify your category.
• Stay Current on Renewals. Set calendar reminders for your business license renewal (with the Division of Revenue) and your child care license renewal (with OCCL). Lapses in either can result in penalties or forced closure.
• Build a Relationship with OCCL. Regulatory agencies are more helpful than many small business operators expect. If you have questions during operation, ask OCCL. They prefer proactive communication over discovering problems during an inspection.

Common Mistakes to Avoid

• Operating Before Licensure. Many new providers assume they can care for a few children while their license is pending. This is unlicensed child care and is illegal. Do not accept any children until your license is in hand.
• Ignoring Background Check Requirements. Any household member (in a family home) or staff member (in any facility) must pass a background check. Allowing unauthorized individuals to be present or to work is a violation.
• Skipping the Screening Plan. Developmental and social-emotional screening for children birth to 5 is a statutory requirement since 2023. Omitting this from your application or failing to implement it after licensure is a violation.
• Neglecting the Business License. Some new daycare operators focus only on the OCCL license and forget to register with the Division of Revenue. You need both: the OCCL license to operate child care, and the Division of Revenue license to legally conduct business in Delaware.
• Assuming Your Facility Meets Standards Without Confirmation. Do not renovate a facility or sign a lease based on assumptions about DELACARE requirements. Confirm the specific capacity, square footage, and safety standards with OCCL first. A facility that does not meet standards will fail inspection.
• Misunderstanding Tax Obligations. Delaware has no sales tax, but your daycare business will owe quarterly or monthly gross receipts tax. Misunderstanding this can lead to tax penalties. Confirm your tax obligations and filing frequency with the Division of Revenue.
• Allowing Lapses in Renewals. If your OCCL license or Division of Revenue business license expires, you cannot legally operate. Set reminders well in advance.

Expected Results and Timeline

OCCL does not publish a standard licensing timeline in the statute, so confirm current processing times with OCCL. A smooth process generally assumes:

• Your facility meets or can quickly be brought into compliance with DELACARE standards.
• Your background check results are clear or contain no disqualifying information.
• You submit a complete application with all required documents.
• You respond promptly to any requests for additional information or corrections.

If OCCL identifies deficiencies in your facility or application, the process will extend until those issues are resolved. Complex situations or background concerns may add weeks or months to the timeline.

Important Disclaimer

This article provides informational guidance about Delaware's child care licensing process under the Delaware Child Care Act (14 Del. C. Chapter 30A) and related regulations. It is not legal advice, tax advice, or professional consultation. Laws and regulations change, and individual circumstances vary.

Before you begin the process of starting a daycare in Delaware, consult with:

• The Office of Child Care Licensing (Delaware Department of Education) for current licensing standards, fees, and facility requirements.
• A Delaware attorney experienced in business formation and child care law if you have questions about entity structure, liability, or regulatory compliance.
• A Delaware CPA or tax professional to understand your tax obligations, including business licensing fees and gross receipts tax.
• A licensed insurance broker to obtain liability and property insurance appropriate for a child care facility.

The information in this article reflects Delaware law and regulations as of October 2026. Always verify current requirements with the Office of Child Care Licensing and the Delaware Division of Revenue before making business decisions.