How to Close a Day Care Center

Whether you're closing your day care center due to retirement, lack of enrollment, a pending move or other reasons, try to give your current families plenty of notice so that they can find another option for their children. Be sure to tie up all the loose ends before closing your business.

Closing a Day Care Center

Provide notice to both your employees and your customers. Ideally, you should let your current customers know at least 60 days ahead of time, giving them ample opportunity to find another day care for their children. Likewise, give your employees time to look for new positions, and provide references when needed. This will prevent chaos and anger and also give you time to transition.

File the appropriate paperwork. Even if you close your business early in the year, you need to file an annual tax return for that year; you must also file tax returns for any employees. You can also cancel any permits or licenses you have to run the day care center and begin closing any related business accounts.

Consider hosting a farewell party. Change can be especially challenging for small children. As long as you're closing under good circumstances, consider a farewell party to celebrate your center and its customers.

Sell any remaining equipment and supplies online or at a local garage sale.


  • The more organized you are with paperwork and details, the smoother this process will go.