How to Start a Child Care Business in North Dakota: $20 Family License, $40 Center License, Self-Declaration for Up to 5 Children and Double Fees if Filed Late

If you want to start a child care business in North Dakota, the first decision is the size of the program, not the paperwork. The number of children you plan to serve, and their ages, decide which license applies, what it costs, and how often you will renew. This guide walks through the steps in order, with the fees and deadlines North Dakota publishes.

This article is informational content, not legal or tax advice. Licensing thresholds and fees can change, and some figures below come from statute and administrative rules that you should confirm with the responsible agency. For lease terms, entity choice, contracts, or tax treatment of your income, talk to a North Dakota attorney or CPA.

What You Need Before You Start

• A written list of the children you expect to enroll, with birth dates, so you can count children under 24 months separately from older children.
• The address where care will happen. If you rent, get the property owner's written permission to run a child care program there.
• A FirstStop account at firststop.sos.nd.gov if you plan to form an LLC or register a trade name.
• Funds for the license fee, background check processing, and fingerprinting. License fees are nonrefundable, so budget for them before you apply.
• A list of the health and safety items HHS requires for your license type. Ask HHS Early Childhood Services for the current checklist rather than relying on older copies you find online.
• If you plan to hire staff, a plan for workers' compensation through WSI, since workers' compensation in North Dakota is provided through WSI (WorkForce Safety and Insurance).

Step 1: Pick the Right License Type

North Dakota sets child care licensing under North Dakota Century Code Chapter 50-11.1, administered by the Department of Health and Human Services (HHS) Early Childhood Services. The annual fees below are nonrefundable.

License or option	Who it generally fits	Annual fee	Two-year fee
Self-declaration	Voluntary option for a private residence caring for up to 5 children through age 11, with no more than 3 under 24 months	$15	Not applicable
Family child care	Home-based care above the self-declaration limits, under the family thresholds in 50-11.1	$20	$35
Group child care	8 to 30 children	$25	$45
Preschool	Preschool program, as defined by HHS	$30	$55
Child care center	Programs above 30 children, subject to confirmation of the exact line	$40	$75
Multiple licensed program	Operators holding more than one licensed program	$50	$95

The family license threshold is written as 4 or more children aged 24 months and under, or 6 or 7 children through age 11 at one time, with no more than 3 children under 24 months. The overlap between those age limits is easy to misread, and the center line is also not settled. The definitions section of the statute uses 19 or more children, while the license provision uses above 30. Confirm both lines with HHS Early Childhood Services before you enroll your first child.

Self-declaration is voluntary. It is a route for a private residence that stays within its limits, and it is not a blanket rule that every home with five or fewer children must be licensed. Ask HHS whether your planned mix of ages qualifies before you advertise care.

Step 2: Confirm Local Zoning and Housing Rules

North Dakota has no general statewide business license, and no major city issues a general business license. That does not mean your city ignores child care. Cities license specific activities only, so call your city planning or zoning office and ask whether a home-based child care use needs a permit, whether your neighborhood has restrictions, and whether signage or parking rules apply. If you rent, check your lease for clauses on business use and on the number of people who may be present at the property.

Step 3: Decide on Your Business Structure

Many home-based operators start as a sole proprietor. This keeps setup simple, but your personal assets may be exposed to business claims, so discuss the choice with an attorney or CPA. If you form an entity, these are the published figures:

• LLC: Articles of Organization under NDCC Chapter 10-32.1, filed through FirstStop, with a filing fee of $135. The LLC annual report is $50, due November 15 each year.
• Corporation: Articles of Incorporation under NDCC Chapter 10-19.1, with a filing fee of $100. The annual report is $25, due August 1 each year.
• Name reservation: $10, which holds a name for 12 months and can be renewed for successive 12 month periods.
• Trade name: $25 to register, $25 to amend and $25 to renew. Registration is renewed every 5 years and gives you the exclusive right to that name within North Dakota only.

Your LLC name must include “limited liability company” or an abbreviation such as LLC, and it must be distinguishable in Secretary of State records. Search the name first at the Secretary of State business search. The Secretary of State does not publish a guaranteed processing time, so call Business Services at (701) 328-2900 for current timing.

Step 4: Get Your Tax Registrations

Get a federal Employer Identification Number from the IRS, which you will need if you hire employees or open a business bank account under an entity name. Then decide whether you need a North Dakota sales and use tax permit. Any business making taxable sales must hold one, and the permit is applied for through ND TAP at tap.tax.nd.gov, ideally about 30 days before you open. The state sales tax rate is 5%, plus city and county taxes. Whether your child care tuition is a taxable sale is a question for the Office of State Tax Commissioner, so confirm it through tax.nd.gov before you set your rates.

Step 5: Complete Background Checks and Fingerprinting

Under NDCC 50-11.1-06.2, criminal history record processing costs up to $30, plus the cost of fingerprinting. Budget for this for yourself, for any staff, and for other people who regularly live in or work at the home or facility. HHS sets who must be checked, so confirm the list with HHS before the process starts. Background checks take time, and a delay here can push back your opening date.

Step 6: Plan Staffing and Workers' Compensation

If you will employ anyone, workers' compensation is a state monopoly through WSI, so you cannot buy it from a private carrier. Set up your coverage before the first paycheck. Job Service North Dakota also offers employer resources, and the Secretary of State's business pages list the steps for registering an employer. Keep staff records, including background check results and training documentation, in a secure place that is easy to produce during an inspection.

Step 7: Prepare Your Program and Safety Setup

Licensing reviews focus on the daily operation of your program. Before you apply, write down your enrollment plan, daily schedule, supervision and staffing arrangements, emergency and evacuation plans, medication and allergy procedures, and sign-in and sign-out process. Confirm the training requirements for your license type with HHS. If you plan to serve meals, note that HHS also licenses food establishments, so ask whether your kitchen setup needs its own approval.

Step 8: Apply and Time Your Filing Carefully

Timing is where many new operators lose money. HHS guidance states that you should apply 60 to 90 days before your license expires. Filing under 60 days before expiry pays twice the fees. For a new program, plan to apply well before you want to enroll children, and ask HHS Early Childhood Services for its current processing timeline, since the published sources do not give a guaranteed number of days.

Keep copies of everything you submit, including the fee payment, the application, and the date you sent it. If the agency asks for corrections, respond quickly.

Step 9: Decide on Optional Programs and Assistance

If you run a four-year-old program, HHS charges a $50 approval fee for that program. Child Care Assistance is a separate HHS program, and eligibility and enrollment rules are set by HHS, not by the licensing office. Ask HHS whether families using assistance can enroll in your program and what paperwork your business must complete. Do not assume that assistance approval is automatic once your license is issued.

Step 10: Stay Compliant After You Open

Set calendar reminders for your license renewal window, which runs 60 to 90 days before expiry, and for the annual LLC report if you formed one. If you operate without a license after receiving written notice from the state, a civil penalty of $50 per day can apply. Keep your roster current, because your count of children under 24 months determines whether your program stays within its license category.

Common Mistakes to Avoid

• Assuming self-declaration covers any size of home program. It is voluntary and limited to a private residence with up to 5 children through age 11, with no more than 3 under 24 months.
• Miscounting infants. Your count of children under 24 months can move you into a different license category, so track it from the first enrollment conversation.
• Filing late. Filing under 60 days before expiry pays twice the fees, and a late filing can also interrupt your operating schedule.
• Forgetting the non-license costs. Trade name fees, LLC reports, background check processing, fingerprinting and sales tax permits all add up before you enroll a single child.
• Treating the city as your licensing authority. North Dakota cities license specific activities, not general businesses, so zoning and permit questions belong with the city planning office.
• Relying on outdated fee tables. Confirm current figures with HHS, the Secretary of State and the Office of State Tax Commissioner before you pay.

What Results to Expect

Operators who gather their documents, confirm their license category and file early often find the process moves more predictably, although no agency publishes a guaranteed approval timeline. Many home-based programs start small, with a limited number of children, and expand after they understand their renewal rhythm and cash flow. Results depend on your location, the families you serve, your staffing and the quality of your program. This article does not promise approval, enrollment levels or income.

Where to Get Help

• North Dakota Secretary of State: sos.nd.gov
• Office of State Tax Commissioner: tax.nd.gov
• North Dakota Small Business Development Centers: hosted by the University of North Dakota Nistler College of Business and Public Administration, at und.edu/ndsbdc
• U.S. Small Business Administration, North Dakota district: sba.gov/district/north-dakota

Start with HHS Early Childhood Services for every licensing question, and use the Small Business Development Centers for free help with the business side of your plan. For complex situations, including how to structure your home, how to protect personal assets, and how to handle child care income for tax purposes, consult a qualified North Dakota attorney or CPA.