How to Start a Home Daycare in Washington: DCYF Family Home License, $30 a Year and a License That Does Not Expire

If you want to run a daycare out of your house in Washington, the license you need is issued by the Department of Children, Youth, and Families (DCYF), not by the Department of Health or the Department of Social and Health Services. DCYF licenses care that happens outside the child's own home, and a family home is the category for care provided in your residence. The state caps a family home at no more than 12 children at once.

The good news is that the process is more predictable than many small business launches. The fee is $30 a year, and once you clear the initial six-month stage and file the required paperwork, the full license does not expire. The less obvious part is that a daycare is a business, a regulated childcare operation, and often a local land use question, all at once. This guide walks through the order that tends to work best. It is informational, not legal or tax advice, so treat it as a checklist to bring to DCYF, your city or county, and a qualified professional.

What You Need Before You Start

Gather these items before you file anything. Having them in a folder will save you several weeks of back and forth.

• Proof of identity and age. The licensee must be at least 18.
• Proof of education. A high school diploma or the equivalent. Keep the original or a certified copy.
• Background check paperwork. DCYF requires a background check for the licensee. Expect to provide identifying details and sign consent forms.
• TB screening results. A tuberculosis screening is required. Ask your health care provider what test they use and how long results take, since that can be a bottleneck.
• DCYF orientation. You must complete the orientation as part of licensing. Schedule it early, because availability can vary.
• A plan for your home. A written description of the rooms you will use for children, the outdoor space if any, and your daily schedule. Use this to answer DCYF and local zoning questions consistently.
• Childcare insurance quotes. Insurance is covered in Step 7, but you will want quotes in hand early.
• Your Washington Business Licensing Service account materials, including the Business License Application, your Unified Business Identifier (UBI) if you already have one, and any trade name you plan to use.
• Funds for the state fees. The $30 DCYF fee is due with the application. The Business License Application processing fee is $50 to open a business, plus a $5 trade name fee if you operate under a business name.

Step 1: Confirm Your Home Fits the Family Home Category

A family home license applies when care happens in the licensee's residence. The core limit is no more than 12 children at once. Before you do anything else, count the children you plan to care for and ask DCYF how it counts any children of your own who will be present during care hours. Counting rules are the first place new providers make mistakes, so get the answer in writing.

Also decide whether you plan to care for children in a space other than your home, such as a separate building on your property. That changes the category and the requirements, so raise it with DCYF before you commit to a floor plan.

Step 2: Meet the Licensee Requirements

The core requirements for the licensee come from WAC 110-300-0100 and 110-300-0105. They are straightforward, but DCYF will verify each one:

1. You are at least 18 years old.
2. You hold a high school diploma or the equivalent.
3. You pass the background check.
4. You complete TB screening.
5. You complete DCYF orientation.

If anyone else will regularly be in the home during care hours, ask DCYF what its background and screening requirements are for that person. Do not assume a spouse or adult household member is exempt.

Step 3: Check Local Zoning and Home Occupation Rules

Washington has 39 counties and 281 incorporated cities and towns. Your home sits in one of those places, and the local rules are separate from the state license. A DCYF license does not override a city or county zoning restriction, and a local permit does not replace the DCYF license.

Contact the planning or permitting office for your city or county and ask three questions: whether childcare in a residence is allowed in your zone, whether a home occupation permit is required, and whether there are limits on signage, parking, or the number of drop-off trips. Ask the local health district whether it has any permit or inspection requirements for a home childcare setting. Check with them directly, because the rules differ from one jurisdiction to the next, and this is one of the most common places a daycare startup gets stalled.

Step 4: Choose Your Business Structure

Your DCYF license is tied to you as the licensee, but how you organize the business is a separate decision. Many home daycare operators start as sole proprietors. A sole proprietor does not file anything with the Secretary of State, though you still register with the Department of Revenue for a business license if the thresholds apply.

Some operators form a limited liability company (LLC) to separate personal and business liability. Here is what that involves in Washington:

• Certificate of Formation with Initial Report. The filing fee is $180. You file through the Corporations and Charities Filing System (CCFS) at ccfs.sos.wa.gov.
• Name. The name must include Limited Liability Company, Limited Liability Co., L.L.C., or LLC, and it must be distinguishable from every other business name on record. Search first at the Secretary of State business search.
• Registered agent. Washington requires a registered agent with a physical street address in the state. PO Boxes and private mailbox addresses are not accepted. If you use yourself, your home address must be a physical Washington street address. The agent must also supply an email address.
• Annual report. The annual report fee is $70 and is due by the last day of the month in which the LLC was formed, every year. It may be filed up to 180 days early. A late filing carries a delinquency fee, for a total of $95.

Whether an LLC makes sense depends on your insurance, your assets, your state and local tax position, and your plans for growth. This is a decision to make with a CPA or attorney, not a default.

Step 5: Register Your Business With the Business Licensing Service

Washington has a general state business license, run by the Business Licensing Service (BLS) inside the Department of Revenue. The BLS issues your 9-digit Unified Business Identifier (UBI) and handles trade names and city endorsements in one application. You will likely need it, because a business license is required if any of these apply: you operate under a name other than your full legal name, you plan to hire employees within 90 days, you owe any tax or fee to the Department of Revenue, or your gross income is $12,000 per year or more. Most home daycares will reach that gross income level, so plan on filing.

If you are an LLC or other entity, you must file with the Secretary of State before you submit the Business License Application. Sole proprietors do not.

The business license covers the state. You may also need city endorsements, and cities add their own taxes. Washington's main business tax is the business and occupation (B&O) tax, a gross receipts tax with no deduction for labor or materials, and about 54 cities add their own local B&O tax that the Department of Revenue does not administer. Ask the Department of Revenue how child care services are classified for B&O purposes, and ask your city whether it levies its own B&O tax. Do not assume that a service business gets an exemption. Confirm it with the agency.

Processing times depend on how you file. Online applications generally take about 10 business days. If city or state endorsements need approval, add two to three weeks. Mailed applications can take up to six weeks. Apply online at dor.wa.gov/open-business/apply-business-license.

Step 6: Register a Trade Name, If You Use One

If your daycare will operate under a name such as Maple Street Family Care rather than your legal name, you need a trade name registration. It is not filed with the Secretary of State or the county. It is done through the Department of Revenue's Business Licensing Service as part of the Business License Application. The trade name fee is $5 for each name registered, on top of the Business License Application processing fee. Details are at dor.wa.gov/manage-business/grow-business/register-trade-names.

Step 7: Arrange Insurance and Parent Notice

Under RCW 43.216.700, family day care providers must show proof of day care insurance or give parents written notice of their insurance status. In practice, the cleaner option is to carry a policy designed for home childcare and keep the certificate on file. Ask the insurer specifically whether the policy covers care in your home, transport if you provide it, and any outdoor activities. Standard homeowners policies often exclude business activity, so do not rely on yours.

Get at least two quotes before you commit, and ask your insurance agent how the premium changes if you increase enrollment. The state does not set a dollar amount for this coverage, so the cost is whatever the market charges for your situation.

Step 8: Submit Your DCYF Family Home Application

Once your identity, education, background check, TB screening, local rules, and business registration are in order, submit the DCYF family home application with the $30 annual fee. The fee is due with the application and then 30 days before each anniversary of the license, under WAC 110-300-0401.

DCYF decides on an application within 90 days. Respond quickly to any request for additional documents, because the clock can move as you wait on information. Start the DCYF process through the agency's website at dcyf.wa.gov, and keep copies of everything you submit.

Do not begin caring for children until you hold a license. Unlicensed care is a misdemeanor in Washington, and a pending application is not a license.

Step 9: Operate Under the Initial License and Plan the Move to Full Status

The initial family home license lasts six months. Use that period to set up your routines, record-keeping, and emergency procedures. It is also the window to finish any remaining requirements and prepare the paperwork that converts the license to full status.

Under RCW 43.216.305, the full license does not expire, provided you file four things:

1. The annual fee of $30.
2. A declaration of intent to continue.
3. A declaration of compliance.
4. Workforce registry background checks.

Confirm the exact filing deadline and the forms with DCYF well before your initial six months end. Missing this step is the most serious and avoidable risk in the process, because the license is what allows you to keep operating. This is not an annual renewal application. It is a non-expiring license that requires ongoing annual filings.

Step 10: Keep Up the Early Childhood Education Requirement

DCYF also requires licensees to meet early childhood education (ECE) credential timelines under WAC 110-300-0100. The rule calls for an ECE initial certificate within five years of licensing, followed by a short certificate within two years. The rule as amended carries a 2030-08-01 date. Ask DCYF how that date applies to a license you obtain now, and map the credit requirements into your personal calendar early so you are not catching up at the end.

Expected Results and What to Realistically Plan For

A realistic timeline for a family home daycare can run several months from first research to first child, depending on how quickly you complete the background check, TB screening, orientation, local permit review, and business registration. Providers who work through the steps in order often find that the local zoning and business license steps take the longest, so start those early. The DCYF decision itself is due within 90 days of a complete application.

Income outcomes depend on your local demand, your rates, your enrollment, and your costs, and this article does not promise any particular result. Many providers find it useful to build a simple budget that includes the state and local fees, insurance, supplies, food, and the B&O tax before setting tuition. The Washington Small Business Development Center at wsbdc.org can help you build that budget and think through the business side of the decision.

Common Mistakes to Avoid

• Opening before the license is issued. Care for children before licensing is unlicensed care and a misdemeanor.
• Assuming a city permit covers the state license, or the reverse. You need both, and each has its own filing.
• Miscounting children. Confirm with DCYF how your own children and any others in the home are counted against the 12-child limit.
• Letting the license lapse. The full license stays in place only if you meet the annual requirements in RCW 43.216.305, and if you miss them the license expires and you must apply again.
• Missing the $30 due date. The fee is due 30 days before each anniversary, so calendar it well ahead.
• Relying on a homeowners policy. Ask your insurer whether business activity is covered, and get a childcare policy if it is not.
• Skipping the business license. With $12,000 or more in annual gross income, you will likely need the Business License Application.
• Using a PO Box for the registered agent. Washington requires a physical street address.
• Forgetting the B&O and city taxes. A state business license does not answer whether your city levies its own B&O tax.

Tips for a Smoother Startup

• Start TB screening and background check paperwork in the first week. These are the most common sources of delay.
• Keep a single compliance calendar with the $30 fee, the declaration deadlines, insurance renewal, the annual report if you form an LLC, and ECE milestones.
• Put every agency's answer in writing. A phone call is useful, but an email or a letter protects you.
• Ask at least one experienced licensed provider in your area how their local permit process went.

Get Professional Advice for Your Situation

This article is informational only. It is not legal, tax, or insurance advice. Your situation may involve a lease, a shared home, an existing business, or a plan to hire staff, and any of those can change the answer. Before you sign a lease, form an entity, or set tuition, consult a qualified attorney about the legal structure and contracts, a CPA about taxes including B&O, and a licensed insurance agent about coverage. Confirm current fees, deadlines, and rules directly with DCYF, the Department of Revenue, the Secretary of State, and your city and county, because requirements change.