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Home child care

Home child care sells weekly or monthly places for a small number of children. The number of places you can offer is set by licensing rules.

Updated

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What the public data shows

U.S. businesses with no employees in the Census Bureau’s Child Care Services category (NAICS 62441), 2023.

Close match — All child care services, including centers.

Businesses with no employees
533,596
The middle business took in
$10,000–$24,999
in sales for the year, before expenses
Average sales per business
$20,886
pulled up by a few large ones

How much these businesses took in, 2023

  • Under $5,00020%
  • $5,000–$9,99921%
  • $10,000–$24,99938%
  • $25,000–$49,99911%
  • $50,000–$99,9996%
  • $100,000–$249,9993%
  • $250,000–$499,999<1%
  • $500,000–$999,999<1%
  • $1,000,000–$2,499,999<1%
  • $2,500,000–$4,999,9990%
  • $5,000,000 or more0%

80% took in less than $25,000 for the whole year — many are side or part-time businesses. If you plan to do this full time, your plan needs sales well above the middle. The local plan works out exactly how much.

What these numbers are — and aren’t. Sales (receipts) before any expenses: not profit, and not what the owner takes home. Counts every business with no paid employees that filed a tax return, including side businesses. The Census Bureau adds a small amount of noise to protect privacy. Businesses with employees aren’t included.

Source: U.S. Census Bureau, Nonemployer Statistics 2023 (released 2025) (data files), retrieved 2026-10-31.

Main caution: Child care is licensed in every state, with limits on how many children you can care for. Check licensing first — it decides what’s possible.

What it costs to run

These are the categories to price with local quotes. The plan lists every one of them for you.

Every client, each month

  • Food and snacks per child
  • Supplies and activities per child
  • Other per-sale costs

Every month

  • Child-care liability insurance
  • Extra utilities
  • Billing and parent communication software
  • Ongoing marketing
  • Required training and renewals
  • Bookkeeping and tax preparation
  • Other monthly costs

To start

  • Safety equipment and home changes
  • Furniture, toys and supplies
  • Licensing, background checks and inspection
  • Business registration and local licenses
  • Website, logo and booking or store page
  • Other one-time costs

Your own pay is part of the cost, too. The plan works out the price that covers it — or start with how much to charge for home child care.

Licenses, insurance and rules to check locally

Requirements differ by state, county and city. Check two layers:

1. Your own license, if the work needs one

Search the CareerOneStop License Finder (US Department of Labor) for “Child care” and choose your state. It lists state occupational licenses and the agency that issues each.

2. Business licenses, permits and insurance

Start with the SBA: Apply for licenses and permits guide, then your city or county. Questions to answer:

  • What does your state require to license home child care, and how many children may you care for?
  • Which background checks, training and inspections are required?
  • Does your homeowner’s or rental agreement allow a home business?

Check local prices before you set yours

Get three real prices from home child care businesses near you, the way a customer would: their websites, a quote request, local listings and review sites, or neighborhood groups. Note what each price includes. Enter them in your local plan — it shows where your price sits and whether your costs leave room to compete.

Test demand before you spend

Offer your first few monthly clients at your real price to people who match your customer — not discounted favors for friends — before investing in more equipment or marketing.

Decide your pass mark before you start — for example, a set number of paid monthly clients within 30 days.

Questions your local plan has to answer

  • What do local competitors charge? Ask for quotes the way a customer would.
  • How long does each monthly client take you, including travel and preparation?
  • How many monthly clients can you deliver in a week at a quality you’re proud of?
  • How will customers find you, and what will it cost to win each one?

This profile is educational. It describes how this kind of business generally works; it doesn’t show that it will be profitable where you are, and it isn’t legal, tax or financial advice.