Step-by-Step Licensure Guide

Introduction

Starting a home-based child care business in Texas can be rewarding, but it requires careful planning and understanding of child care regulation requirements. This guide will walk you through the key steps to becoming a permitted home-based child care provider in Texas, helping you navigate the process with confidence.

Step 1: Determine Your Child Care Home Type

Which provider type is right for me?

Texas offers three types of home-based child care permits. Each option has different capacity limits, oversight requirements, and eligibility for state-funded programs:

1. Listed Family Home:

Definition: A listed family home provides care and supervision:

• for up to three (3) unrelated children.

  • for at least:

    • four hours a day, three or more days a week, for three or more consecutive weeks, or 

    • four hours a day for 40 or more days in a 12-month period; and

  • in the primary caregiver’s home.

Oversight & Requirements:Must be at least 18 years of age to apply.

• must meet minimum standards for listed family homes.

  • a violation of minimum standards for listed family homes, or the caregiver is caring for more children than the permit allows.

• must complete Safe-Sleep Self-Instructional Training before a permit is issued.

• not regularly inspected. 

  • Investigated only when there are reports of minimum standard violations or if they are operating over capacity.

  • The Department of Family and Protective Services will investigate any allegations of abuse, neglect, or exploitation.

Program Eligibility:

• Cannot participate in:

  • Child Care Services (CCS)

  • Texas Rising Star (TRS)

• Not listed in the Child Care Availability Portal, but will be listed on the Search Texas Child Care site, the official site for locating regulated child care in Texas

Best for:

Caregivers who want to start small with minimal regulatory oversight

• Providers who are looking to start small with fewer children and no routine scheduled inspections.

• Individuals who are not yet ready to invest in staff, training, or facility upgrades.

• Providers who do not plan to access CCS, TRS, or list their services in the Child Care Availability Portal and prefer to operate outside of state-supported systems for now.

• Someone who is already caring for a minimum of unrelated children and wants to meet legal requirements without major changes to how they operate.

NOTE: While Listed Family Homes don't receive regular monitoring visits, they must still meet minimum standards and are subject to investigation if violations are reported. There are mandatory upfront costs including application fees, background checks, fingerprinting, and training that you will need to budget for before beginning operations.

2. Registered Child Care Home:

Definition: A registered child-care home provides care and supervision:

• for up to six (6) unrelated children who are ages thirteen or younger during school hours and can also provide care and supervision for six (6) additional school-age children after school hours. (No more than twelve children can be in care at any time, including children related to the caregiver.)

• for at least:

  • four hours a day, three or more days a week, for three or more consecutive weeks, or 

  • four hours a day for 40 or more days in 12 months; and

• in the primary caregiver’s home.

Oversight & Requirements:

• Must be 21 years of age and have a high school diploma or its equivalent to apply.

• Must meet minimum standards for licensed and registered child-care homes as applicable.

• Receives at least one unannounced monitoring inspection by CCR every one to two years.

Program Eligibility:

• Can participate in:

  • Child Care Services (CCS)

  • Texas Rising Star (TRS)

• Listed in the Child Care Availability Portal as well as the Search Texas Child Care site.

Best for:

• Providers who are interested in moderately increasing the number of children they serve, including school-age children after school hours.

• Business owners who are looking to access state supports such as CCS and TRS and gain visibility through the Child Care Availability Portal.

• Providers who are prepared to make moderate updates to their environment and practice meeting compliance requirements for caring for a larger group of children.

• Providers who prefer a balanced level of oversight and structure without taking on the full operational demands of a licensed program.

• Someone ready to formalize and grow their caregiving into a small, state-supported child care business.

3. Licensed Child Care Home:

Definition: A licensed child-care home provides care and supervision:

• for seven (7) to twelve (12) children ages thirteen or younger.

• for at least:

  • two hours, but less than 24 hours per day, 

  • for three or more days a week; and

  • in the primary caregiver’s home.

Oversight & Requirements

• Must be 21 years of age and have a high school diploma or its equivalent to apply.

• Meets additional education and experience requirements as outlined here.

• Meets minimum standards for licensed and registered child-care homes as applicable.

• Receives at least one unannounced monitoring inspection by CCR per year.

Program Eligibility:

• Can participate in:

  • Child Care Services (CCS)

  • Texas Rising Star (TRS)

• Listed in the Child Care Availability Portal as well as the Search Texas Child Care site.

Best for:

• Providers who want to expand the number of children they serve and are ready to meet the requirements that come with increased capacity.

• Business owners who are looking to maximize revenue potential by serving more children through both private pay and CCS reimbursement.

• Providers who want to access CCS and TRS, and gain visibility through the Child Care Availability Portal

• Providers who are prepared for a more structured business model with regular oversight, documentation, and training requirements.

• Someone who is ready to take on a larger caregiving role with additional structure, support, assistant caregivers, and oversight to serve more families within the state’s child care regulation framework.

How do I choose?

• Read the Minimum Standards Manual for your desired provider type at Child Care Regulation.

• Walk through your home to identify any safety or space updates you may need.

• Make note of any training, equipment, or facility upgrades required to meet child care regulation standards.

• Create a basic budget that includes expected costs for training, supplies, insurance, and home updates.

• Begin tracking questions to ask during your orientation session.

Tip: Even if you are not applying yet, preparing early can help you avoid delays later. Knowing what you need to invest — time, training, or money — will help you set realistic goals and move forward with confidence.

What do I do if I want to change my permit type?

You do not have to stay in one type of family child care permit forever; you can adjust your permit type over time as your goals, capacity, and business plans evolve.

Some providers start as a Listed Family Home and later choose to become Registered or Licensed when they want to serve more children or participate in state-supported programs like CCS and TRS. Others may open as a Registered or Licensed Home from the start if they meet the requirements and are ready for a more structured set-up.

What matters most is understanding the benefits and responsibilities of each permit type and choosing the one that best fits the size and complexity of the business you want to run. Once you know where you want to be, you can take the steps to get there, whether that means applying for a different permit or gradually transitioning into a new model over time. If you want to serve more children by upgrading to a higher-capacity permit type (such as moving from Listed to Registered, or Registered to Licensed), you must obtain the new permit before increasing your enrollment.

You can learn more about the different types of permits and the minimum standards for each at Child Care Regulation.

Step 2: Attend a Child Care Home Orientation (optional)

Once you have determined which provider type you are ready to apply for, you are ready to begin the permitting process. To become a registered or licensed family home operation, you can choose to attend a pre-application orientation session. This orientation provides an overview of the application process and materials, minimum standard rules, and information necessary to apply and operate a licensed or registered child care home. Sessions are available in person or virtually at various times and days of the month. You can register for an orientation here.

Step 3: Create an Online Account

Once you have completed the orientation, you will be ready to submit your formal application. This happens through the online Child Care Regulation portal.You will need to provide your personal information, details about your home, and the type of license for which you are applying. You will also need to upload documents like a floor plan of your home, proof of identity, and other compliance materials, depending on your local regulations.

Note: While the E-app is used during your initial account setup, the portal is used for ongoing submissions, such as insurance changes and background checks.

If you do not already have a permit with HHS Child Care Regulation, create an online account with Child Care Regulation (CCR) to submit your application. On the account creation page, select "No" when asked if you have a permit number, then complete the registration form.

If you do have a permit with HHS Child Care Regulation, select “Yes” when asked if you have a permit number and enter your existing permit information. The system will then link your new application or updates to your existing HHS CCR record.

If you would prefer to complete a paper application, please reach out to your local Regulation office or download the forms from the Child Care Regulation website.

Step 4: Submit Your Application

Submit your application through the Child Care Regulation portal. A CCR representative will contact you to discuss your application status and provide an operation number. There is a small application fee you’ll need to pay, and you should keep a copy of the application for your records. This is a good point to start building your business binder or digital folder, somewhere you’ll keep copies of everything you submit as part of your application. Staying organized now will save you a lot of stress later.

Step 5: Complete Background Checks

As part of the application process, you will be asked to complete background checks for yourself and anyone else who lives in or regularly visits your home. Texas has very clear rules about who needs to be screened and how.

For all permit types, everyone aged 14 and older in your household must undergo a background check. If you plan to have any assistants, substitutes, or volunteers helping in your home, they’ll need to be cleared, too. FBI fingerprinting is also required for everyone 18 years and older who needs a background check. 

This entire process is handled by theCentralized Background Check Unit (CBCU),which is part of Child Care Regulation. Background checks are submitted through the Child Care Regulation portal.

Step 6: Meet Training Requirements

To become a Licensed or Registered program, you’ll need to complete the required training as part of the application process, as well as complete annual trainings to maintain your permit, even if you already have experience
(Listed family homes are required by statute to completeSafe-Sleep Self-Instructional Training prior to issuance):

• CPR and Pediatric First Aid training given by an approved vendor

  • CPR training must follow American Heart Association guidelines and include infants, children, and adults

• Pre-Service Training – 24 hours for Registered homes* or 30 hours of training for Licensed homes on topics including:

  • Emergency preparedness

  • Preventing SIDS/Shaken Baby Syndrome

  • Understanding Minimum Standards

  • Age-appropriate discipline and supervision

*Note that registered homes must have proof of completed required training to submit with their application and prior to issuance.

It’s your responsibility to track and document all of this. We recommend creating a simple training log to record the name of each course, the date completed, and any certificates you receive. Keep everything together in a binder or digital folder for easy reference. You’ll also need to stay on top of any ongoing or annual training that may be required.

Step 7: Home Inspection

Now comes one of the most important parts: getting your home ready. Listed family homes do not receive an inspection prior to becoming permitted; however, they will be inspected when there is an allegation of minimum standard violations, which include operating over capacity. 

Registered or Licensed homes must meet child care minimum standards before being permitted. During the inspection, a regulation representative will tour your home and review your documentation. They will look for safety hazards and may ask you how you’ll handle specific situations, such as sick children or fire evacuations. Everything from your plumbing to your trash disposal will be reviewed. They will also look for:

• Working smoke detectors, fire extinguishers, carbon monoxide detectors (if applicable)

• Emergency exits and posted evacuation plan

• Childproofed spaces, outlet covers, safe storage for chemicals

• Cleanable surfaces, working plumbing, appropriate toys, and furnishings

Regardless of your permit type, you’ll still want to ensure the space is clean, well-lit, and organized, with age-appropriate toys and materials. Texas requires at least 30 square feet of indoor usable activity space per child for licensed/registered homes, and 80 square feet of outdoor activity space per child. Outdoor areas need to be enclosed and free of hazards. Pets must be vaccinated and kept under control around children.

What if you don’t pass the inspection?

Don’t worry, you’ll be given a list of specific corrections to make. Once you’ve made the required updates, the regulation representative will follow up to verify that corrections have been made. A physical follow-up is not always conducted; at times, corrections are verified via email, pictures, video, etc. Your regulation representative will let you know any next steps.  You won’t receive your final permit until all issues are resolved, but this process provides a clear roadmap for what to fix.

What if an update is expensive or time-consuming?

Some changes, like fencing a yard or repairing plumbing, can be costly. If this happens:

• Prioritize critical safety fixes first (those affecting child safety or permit approval)

• Look for low- or no-interest business loans or local grants for child care improvements

• Consider phasing in improvements gradually, as long as you meet minimum standards

• Reach out to other providers, mentors, or community agencies to get advice or referrals for lower-cost services

Tip: Do a full walkthrough of your home before your inspection date, note any items that need to be fixed or improved, and take care of those before your inspection. You don’t have to have a perfect setup from day one, but you do need to meet minimum standards. Plan to have your home set up as if you will be providing child care that day.

Step 8: Final Permit Decision and Maintaining Compliance

If everything is in order, you’ll be approved. If not, you’ll be given a list of corrections to make. Once you’ve addressed those items, you’ll receive your permit in the mail.

This is a great moment of accomplishment. Once you’ve obtained your permit, you can begin operating and enrolling children. But it’s also just the beginning. You’ll now enter the phase of maintaining compliance year after year.

Obtaining a permit isn’t a one-time achievement; it’s an ongoing responsibility. That means continuing to meet all health, safety, and training requirements, even after you’ve been approved. Listed family homes are not routinely inspected unless a complaint is received regarding a possible violation of the minimum standards. However, Licensed and Registered homes will be subject to annual inspections, which may be unannounced. Your records need to be up to date at all times, including:

• attendance sheets

• enrollment forms

• training certificates

• If you hire staff or if anyone age 14 or over comes to live with you, you’ll need to update your records and submit new background checks.

Staying compliant also means renewing your CPR certification every two years, completing annual training hours, and conducting and documenting regular fire drills and safety checks.

Tip: Planning ahead helps! Set aside a small monthly fund for maintenance and unexpected repairs. Keeping your environment in good shape not only ensures compliance but also supports the quality and reputation of your care. If a provider fails to maintain compliance, CCR may issue a corrective action plan or, in serious cases, suspend or revoke the permit. Staying proactive with recordkeeping and inspections helps avoid these issues.

Recordkeeping and Liability Insurance

Once your business is running, one of the most important responsibilities you’ll have is maintaining accurate and up-to-date records. Recordkeeping is absolutely essential for staying in compliance, protecting your legal rights, and keeping your finances in order.

You’ll need to keep:

• enrollment forms

• attendance sheets

• immunization records

• any incident reports that occur

• a log of your fire drills

• copies of your training certificates

• a daily schedule that reflects how you run your program

We recommend creating two copies of everything, one physical and one digital. You can use a binder, an accordion file, or cloud storage like Google Drive, Dropbox, or others. Label records by category and date so they’re easy to find.

Insurance coverage is another important protection for your business. CCR requires applicants for a licensed child care home, registered child care home, or listed family home to provide proof of coverage or complete the Parental Notification of Lack of Liability Insurance form before CCR issues a permit. Liability insurance protects you if a child gets hurt, if there’s a property issue, or if a parent or caregiver takes legal action. Make sure your policy includes both general liability and professional liability coverage. That means you're protected whether the issue is physical harm or a procedural complaint, such as a claim of improper supervision or care.

Common Start-Up Costs

Planning ahead financially gives you the best chance of opening smoothly and staying sustainable. As you prepare for licensure, it’s important to understand the financial investment required to launch your child care business. While the exact costs will vary depending on your home, your location, and how many children you plan to serve, there are some common start-up expenses you can expect.

• Regulation-related costs:

  • Application, permit, and fingerprinting and background check fees

  • possible inspection-related updates, such as:

    • adding smoke detectors or fire extinguishers

  • training costs such as

    • CPR, First Aid, and your required pre-service hours. Some of these may be covered through scholarships or FCCN support, but not always.

• Supply expenses:

  • age-appropriate toys, books, playmats, and art supplies

  • furniture like high chairs, cots, child-sized tables, storage bins

  • safety equipment like child-proof locks, outlet covers, cord management supplies, etc.

• Other costs to budget for include:

  • liability insurance premiums

  • marketing materials like flyers or signage

To manage all of this, it’s a good idea to build both a start-up budget and an operating budget. The start-up budget covers one-time expenses to get permitted and open. The operating budget covers the monthly costs of running your business, such as food, paper goods, utility increases, and ongoing training. Tools like the Civitas Strategies® Monthly Budget Worksheet can help you plan and track your expenses.

Texas Home-Based Child Care Regulation Checklist

Use this checklist to walk through each step of becoming a permitted child care provider in Texas. Whether you're just getting started or transitioning to a new permit type, this tool will help you stay organized and track your progress. Check off each task as you complete it to ensure you're on the right path from orientation to final approval and beyond.

Step 1: Determine the Permit Type You're Applying For

☐ Review the differences between Listed, Registered, and Licensed Child Care Homes

☐ Choose the permit type that fits your current situation, goals, and capacity

Step 2: Attend a Child Care Home Orientation

☐ Register for and attend a required orientation session through the CCR website

(If you are upgrading from a Listed or Registered permit to a new type, you can attend orientation again, specific to that level.)

Step 3: Create an Online Account

☐ Create an account in the Child Care Regulation portal

☐ Select “No” if you are a new applicant, or “Yes” and enter your existing permit number if you are a returning provider

Step 4: Submit Your Application

☐ Complete and submit the online application

☐ Upload required documents (e.g., floor plan, ID, proof of insurance)

☐ Pay the application fee

☐ Save a copy of your application for your records

Step 5: Complete Background Checks

☐ Request background checks through the Child Care Regulation provider portal

☐ Complete background checks for yourself and all household members age 14 and older

☐ Complete checks for any substitutes, assistants, or regular visitors

Step 6: Meet Training Requirements

☐ Complete CPR and Pediatric First Aid training from an approved vendor

☐ Complete required pre-service training (24 hours for Registered / 30 hours for Licensed)

☐ Maintain a log of training dates and certificates

☐ Store all certificates in a binder or digital folder

Step 7: Prepare for and Pass the Home Inspection

☐ Address all safety, health, and facility minimum standards before the inspection date (e.g., outlet covers, emergency plans)

☐ Ensure you meet indoor and outdoor space requirements

☐ Complete your inspection with CCR

☐ If issues are found, complete corrections by the compliance date

Step 8: Final Permit Decision and Ongoing Compliance

☐ Receive your child care permit once approved

☐ Begin operating and enrolling children

☐ Maintain compliance through up-to-date records, training, and routine safety drills

☐ Submit background checks for new household members or staff

☐ Set aside funds for maintenance and future compliance-related expenses

Additional Resources

• Texas Health and Human Services Child Care Regulation website: This is the regulatory authority for all child care operations in Texas. This is where you’ll find the Minimum Standards manual, the online application portal, and contact information for your regional CCR office. Child Care Regulation (CCR) is your official contact for regulatory and compliance questions and can provide manuals, forms, and procedural guidance. Additional application support will be provided by the CCR Navigators when your application is submitted. CCR Navigators will assist you in completing any missing application materials, provide resources, and support you as you begin your child care business.

• Child and Adult Care Food Program (CACFP): This program reimburses you monthly for the meals and snacks you serve to children, as long as they meet USDA nutrition standards.

• Texas Child Care Subsidy Program: If you’re approved as a subsidy provider, you can enroll families who qualify for financial assistance and get paid directly by the state for a portion of their tuition. This can provide a steady, predictable source of income and help you maintain full enrollment.

• TWC Family Child Care Network Business Coaching: Free business coaching, tools for recordkeeping and budgeting, hiring support, and even professional development planning. Your coach is someone you can email, call, or meet with to walk through anything, from setting tuition rates to preparing for your next inspection.