How to Open a Daycare in Ohio

Form an Ohio LLC, appoint a statutory agent, and get an EIN so you can run payroll, open business banking, and contract cleanly. Child care carries real liability, so the entity plus strong insurance is non-negotiable.

The space must pass several layers of review: zoning approval for child care, a fire inspection, a building inspection (centers also undergo building plan review), and often a food/health review—plus playground safety, square-footage-per-child minimums, and safe-sleep and diapering setups for infants. Centers face more facility requirements than in-home programs. Confirm zoning before you lease, because a space that can't be approved for child care is a dead end.

Ratios are central to licensing and staffing cost. For licensed centers, Ohio sets maximums by age (effective October 3, 2023): infants under 12 months 5:1 (group size 12), young toddlers 12–17 months 6:1, older toddlers 18–29 months 7:1, 30–35 months 8:1, three-year-olds 12:1, four- to five-year-olds 14:1, and school-age 18:1 to 20:1. For family child care (Type A and B), each staff member may care for up to seven children, with no more than three under age two; a Type A home needs a second staff member once more than seven children, or four or more children under two, are present (OAC 5180:2-13).

You apply through the Ohio Child Licensing and Quality System (OCLQS) with your facility details, policies, staffing plan, and proof that background checks and training are complete. An inspection confirms ratios, safety, and recordkeeping before a license is issued, and your license capacity (the maximum children present at one time) is printed on the license. Build in time—this is not a same-week process.

Daycare revenue comes from tuition and, for many providers, Publicly Funded Child Care (PFCC) subsidies—becoming an accepted provider expands your family base. Many also enroll in Step Up To Quality, Ohio's star-rating system, which can unlock higher PFCC reimbursement. Staff wages are your largest cost, followed by insurance, food-program participation, supplies, and the build-out to meet safety standards. Strong enrollment and well-managed ratios are what make the math work.

Forming the LLC is fast, but licensing is the long pole: facility approvals, background checks, training hours, policy development, and the OCLQS inspection commonly take several months. Start the facility and background steps early and in parallel.