With the large number of dual wage-earner homes and single-parent families, it’s inevitable that many families will need to turn to a caregiver to help manage the time demands placed upon parents. In Minnesota, starting a daycare business requires the operator to negotiate the demands of launching any startup business as well as meeting the requirements for state licensing of the center.
Determine the location for your daycare business. The Minnesota Department of Human Services requires daycare centers to provide 35 square feet of indoor space per child, and provide 50 square feet of outdoor play space or be within 1,500 feet of a playground to qualify. Indoor space must also include equipment and activities to engage children. Centers can be located in a residence or in commercial property.
Ensure your location meets health and safety standards detailed by the State of Minnesota’s Administrative Rules § 9502.0425, which require centers to offer fire escape routes, keep the temperature at or above 62 degrees, provide handrails on stairwells with more than three steps, and water hazards such as ponds and pools must be inaccessible to children except during supervised periods.
Create your business structure. If your business is a sole proprietorship, you do not need to register with the State of Minnesota, though corporations, partnerships and limited liability companies must register with the Minnesota Secretary of State.
Meet taxation registration requirements. Your daycare business requires an Employer Identification Number assigned from the Internal Revenue Service, and a Minnesota tax ID number issued by the Minnesota Department of Revenue.
Receive child-care training. To be licensed caregivers in Minnesota, caregivers must receive six to nine hours of child-specific first aid and CPR and an eight-hour training session in child development and child care.
Apply for a daycare license from the Minnesota Department of Human Services. Caregivers must pass a background check and your facility must meet all health and safety standards proscribed by the state.
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