How to Start a Daycare in Maine: Family Child Care License at $160 for 4 to 12 Children, the 2025 Threshold Change, $240 Center Fee and Staffing Ratios
How to Start a Daycare in Maine: Family Child Care License at $160 for 4 to 12 Children, the 2025 Threshold Change, $240 Center Fee and Staffing Ratios
If you want to care for other families' children in Maine, the first question is not which form to file. It is which license category you fall into. The Department of Health and Human Services (DHHS) Office of Children and Family Services (OCFS) licenses child care under 22 MRSA chapter 1673, and the category depends on how many children you care for and where the care happens. Get that right first, and the fees, staffing ratios and inspection steps follow from it.
This guide is a practical walkthrough for getting a maine child care license. It covers the family child care license at $160, the threshold change that took effect in 2025, the $240 facility fee, and the staffing ratios you will need to plan around. This is informational content, not legal or tax advice. Confirm current requirements with OCFS before you sign a lease or buy equipment.
Which License Category Applies to You
Maine sorts child care by the number of children you care for and where that care takes place. Under Public Law 2025, chapter 135, which DHHS says took effect September 24, 2025, the categories work like this:
| Setup | Children who are not your own | License status |
|---|---|---|
| Home provider with your own resident children | Up to 3 other children, or up to 4 if at least 2 are siblings and no more than 3 are under age 2 | No license needed |
| Family child care (in your home) | 4 to 12 | License required under chapter 33 |
| Small child care facility (outside your residence) | 3 to 12 | License required under chapter 32 |
| Child care center | 13 or more | License required under chapter 32 |
Two points cause the most confusion. First, the family child care rule text in chapter 33 still refers to 3 to 12 children. The statute controls, so plan around 4 to 12 for a home-based program. Second, the rule chapters are not interchangeable. Chapter 33 governs family homes and chapter 32 governs facilities. Vendors and older websites sometimes mix them up, so check which chapter a document cites before you rely on its fees or ratios.
If you plan to operate outside your home with three to twelve children, you are in facility territory from the start, with higher fees and insurance requirements. Decide this before you pick a location.
What You Need Before You Start
- Personal identification and contact information for yourself, plus names, dates of birth and contact details for every adult who lives in or works at the program. Those adults will need fingerprint background checks.
- A decision on business structure: sole proprietorship, LLC or corporation.
- A printer and a way to mail or deliver paper forms. Maine does not accept online filing of formation documents, so LLC and corporation forms are fillable PDFs that must be printed and sent with payment.
- Funds for the state fees listed in Step 4.
- A written floor plan of every indoor and outdoor space you will use, with square footage and room use labeled.
- A daily schedule and a staffing plan that shows how you will meet the ratios in Step 7.
- An insurance quote, especially if you are licensed as a facility.
- The phone number and office hours of your town or city office.
Step 1: Count Children the Way the Rule Does
Count only children who are not your own. If you have your own children living with you, they do not count toward the license threshold. You may care for up to three other children without a license. You may care for up to four if at least two of those children are siblings and no more than three of the four are under age 2. Once you go beyond those limits, you need a license.
Write down your plan before you advertise. A provider who advertises openings for six children in a home has already decided to be licensed, even if the first few enrollments are small. Also keep a running enrollment list so you can show, on paper, which children are in care and whether they are your own.
Step 2: Check Zoning and Local Rules With Your Town
Maine issues no general statewide business license and no general town business license. Licensing is by activity, and municipal officers license named activities by ordinance, with fees that vary widely by town. Child care may be a named activity locally, and home occupation or zoning rules can limit how a residence is used. Call your town or city office, ask whether child care needs a local permit or has home-occupation limits, and get the answer in writing if you can.
Do this before you commit to a lease or a purchase. Zoning problems are much harder to fix after you have signed.
Step 3: Choose and File Your Business Structure
Many small providers operate as sole proprietors, and that choice affects your paperwork.
- Sole proprietor using your own name: No state formation filing is required for the business itself. If you operate under a different name, you file a sworn assumed-name certificate with the clerk of the city or town where the business is carried on. The municipal fee is set locally, so confirm it with that clerk.
- LLC: File the Certificate of Formation (Form MLLC-6) with the Secretary of State for $175 under 31 MRSA 1531. The name must include "limited liability company," "limited company," or one of the abbreviations LLC, L.L.C., L.C. or LC, as set out in 31 MRSA 1508. You may reserve a name for 120 days on Form MLLC-1 for $20. An LLC must also appoint and keep a registered agent with a physical street address in Maine, not a P.O. Box.
- Corporation: File Articles of Incorporation (Form MBCA-6) for $145 under Title 13-C, the Maine Business Corporation Act. The same registered agent rule applies.
- Trade name for an LLC or corporation: File a Statement of Intention to do Business under an Assumed Name (Form ASUM-5) with the Secretary of State for $125.
The Secretary of State's corporations pages show processing of 2 to 7 business days for corporate filings. Those figures have varied across snapshots, so treat them as an estimate and confirm the current time. Expedited handling is available for an added fee: $50 for 24-hour service or $100 for immediate service, depending on staffing when you make the request. Start with the business search at https://apps3.web.maine.gov/nei-sos-icrs/ICRS to confirm your name is available, then use the forms at https://www.maine.gov/sos/corporations-commissions.
Whether an LLC or sole proprietorship makes sense for your situation is a tax and liability question. Talk to an attorney or CPA before you decide.
Step 4: Pick the Right License Type and Pay the Fee
Fees depend on your category and on whether you are applying for a first license or renewing. The figures below are the ones in force in 2026 under the rules cited.
| Category | Provisional | Temporary | Full license or biennial renewal | Rule source |
|---|---|---|---|---|
| Family child care (home) | $80 | $10 | $160 | 10-148 CMR ch. 33, section 3 |
| Facility (3 to 12 or 13+ children) | $120 | $120 | $240 | 10-148 CMR ch. 32 |
| Nursery school | $10 | Confirm with OCFS | 10-148 CMR ch. 32 | |
Notice that the facility temporary fee is $120, the same as the provisional fee, while the family temporary fee is $10. Licenses for both categories renew every two years, so the full license fee is also your renewal fee. Budget for it from the start.
Ask OCFS whether a provisional license is right for you. A provisional license is a lower-cost first step, but it is not the same as a full license, so confirm what it allows and how long it lasts before you open.
Step 5: Complete Background Checks
The provider, staff and adult household members must complete fingerprint background checks. Checks are repeated every five years. OCFS states that these checks are at no cost to providers. Start early, because background clearance is one of the items that can hold up your opening. Make sure every adult who will be in the home or program is on your list before you submit the application, since a missing name will delay the file.
Step 6: Get Liability Insurance
For facilities, the minimum liability coverage is $100,000 per person, $300,000 per occurrence and $5,000 property damage. Confirm the current requirement for family homes with OCFS, because the figures above are the facility minimums.
Do not assume your homeowner's policy covers child care. Many homeowner's policies exclude business activity, and a policy that does not cover the business can leave you exposed after an injury. Ask your insurer in writing whether a child care business is covered, and get a quote for the minimums that apply to your category.
Step 7: Plan Your Staffing Ratios
Ratios set how many children one adult may supervise, and they drive how many staff you need and how many children you can enroll. For family child care, the ratios are:
| Age group | Ratio |
|---|---|
| 6 weeks to 2 years | 1:4 |
| 2 to 5 years | 1:8 |
| Over 5 years | 1:12 |
Build your enrollment around the youngest child in care. If you enroll one infant in a home program, your capacity for that group drops sharply because the 1:4 ratio applies. Ask OCFS how mixed-age groups are counted, and get the answer in writing, because the table above does not settle that question. Facility ratios come from chapter 32, so confirm those with OCFS before you hire.
Step 8: Prepare for Inspection
Expect at least one unannounced inspection between 6 and 18 months after you are licensed. Inspectors will review your records, your space and your daily practice, so keep these ready at all times: enrollment and attendance records, emergency contact forms, medication logs, your schedule, your staffing records, and proof of background checks and insurance. A binder that is current on any given day is far easier to manage than one assembled the week an inspector calls.
Step 9: Set Up Your Ongoing Filings and Taxes
If you form an LLC, the Annual Report (Form MLLC-13) costs $85 and is due June 1 each year. The first report is due between January 1 and June 1 of the year after formation. Corporations file an $85 annual report on the same June 1 schedule under Form MBCA-13. Mark both dates on your calendar.
Maine has no LLC franchise tax and no separate LLC annual tax. An LLC is taxed by default as a pass-through, so members report income on Maine individual income tax returns at graduated rates of 5.8% to 7.15%. An LLC that elects corporate treatment pays Maine corporate income tax at 3.5% to 8.93%. Ask Maine Revenue Services at https://www.maine.gov/revenue/ whether any sales tax registration applies to your operation. The general state sales tax rate is 5.5%. Your CPA can tell you which structure makes sense once you know your projected income.
Tips for a Smoother Application
- Call OCFS before you buy equipment or sign a lease. A short conversation about your category and layout can prevent a costly redesign.
- Use the Business Answers licensing assistant at https://maine.gov/businessanswers to check for other permits or licenses that may apply to your program.
- Ask the Maine Small Business Development Centers at https://www.mainesbdc.org/ for free help with your business plan and budget.
- Check the U.S. Small Business Administration's Maine district page at https://www.sba.gov/district/maine for local counseling resources.
- Keep one folder with copies of every filing, receipt and approval letter. Agencies may ask for a document you filed months earlier.
Common Mistakes to Avoid
- Using the wrong chapter. A home program is governed by chapter 33 and a facility by chapter 32. Fees and ratios differ between them, so confirm which one applies before you budget.
- Trusting the old threshold. The chapter 33 rule text still says 3 to 12 children, but the 2025 statute controls. Plan around 4 to 12 for a home program.
- Miscounting your own children. Write down the count for each day you plan to operate, not only the count you hope to have.
- Using a P.O. Box for your registered agent. Maine requires a physical street address for a noncommercial registered agent.
- Forgetting the annual report. A missed June 1 deadline for an LLC or corporation creates a problem you do not need during licensing.
- Assuming online filing. Formation forms must be printed and mailed or delivered with payment.
- Skipping the zoning call. A signed lease that does not allow child care is an expensive mistake.
- Relying on homeowner's insurance. Confirm coverage in writing with your insurer.
What to Expect Once You Are Licensed
A complete, well-organized application is more likely to move through review without repeated requests for missing information. Processing times for OCFS licensing are not set out in the figures this guide relies on, so plan for a gap between filing and opening, and confirm the current timeline with OCFS. Expect your first unannounced inspection within 6 to 18 months of licensing. Once licensed, plan for renewal every two years at $160 for a family license or $240 for a facility, and keep your annual report current if you operate through an LLC or corporation.
Many providers find that the first year goes best when they treat compliance as part of daily operations rather than a separate project. Records, ratios and insurance are much easier to maintain when they are built into the schedule from the start.
Disclaimer and Next Steps
This article is informational content about forming a business and obtaining a child care license in Maine. It is not legal or tax advice, and it does not create an attorney-client or CPA relationship. Fees, thresholds and rules change. Verify every figure with OCFS, the Secretary of State and Maine Revenue Services before you act. For a complex situation, such as a multi-site program, a facility with a lease, or a plan to hire staff, consult a qualified attorney and a CPA.
Start with the agency that controls your license: search for the Office of Children and Family Services on the Maine state website, confirm your category, and ask for the current application packet and fee schedule. Then move to your town office and, if you are forming an entity, the Secretary of State.