How to Start a Daycare Business in Georgia

Georgia has a genuine childcare shortage in many counties, which means the demand is real. But opening a daycare here is not a simple business registration — it’s a regulated process that runs through a specific state agency, requires inspections from multiple departments, and mandates training before you can even submit your application. Get the sequence right and you can be open in a few months. Skip steps and you’ll be circling back.

The agency you’re dealing with is DECAL — the Department of Early Care and Learning, operating under the brand name Bright from the Start. Not the Department of Public Health. Not the Secretary of State. DECAL owns childcare licensing in Georgia, and everything flows through them at decal.ga.gov.

Here’s what the process actually looks like.

Georgia DECAL License Types

Your first decision is which license you’re applying for. DECAL issues three types, and the right one depends on where you’re operating and how many children you want to serve.

Child Care Learning Center (CCLC)

This is the commercial daycare model — a stand-alone facility that is not someone’s residence. If you’re leasing a building, converting a retail space, or building something new, this is your license. CCLCs serve 7 or more children, and there’s no hard upper cap other than what your facility’s square footage and staff ratios can support.

Most people who search “how to start a daycare business in Georgia” have this type in mind. It’s the highest startup cost, the most involved inspection process, and the most scalable. Processing time from complete application to license: minimum 60 days.

Family Child Care Learning Home (FCCLH)

This is the home-based option for smaller operations — 3 to 6 children, in your private residence. You’re the primary caregiver, and you don’t necessarily need staff (though you may want backup).

One critical detail: your own children under age 13 count toward that 6-child capacity. So if you have two kids at home, you can only enroll 4 paying clients. That math matters when you’re projecting revenue. Processing time: 45 days minimum.

Group Day Care Home (GDCH)

Still home-based, but larger — 7 to 18 children in your private residence. The step up from FCCLH in capacity comes with a firm requirement: at least one full-time assistant on staff at all times. You can’t run 18 kids out of your house alone. The Group Day Care Home license is a middle path between a small family operation and a full commercial center.

All three licenses are issued by DECAL and applied for through the DECAL KOALA online portal — koala.decal.ga.gov. That’s where your application, documentation uploads, and status tracking live.

Pre-License Requirements

This is where most people underestimate the timeline. The DECAL license process has several prerequisites that have to happen before or alongside your application — and some of them take weeks on their own.

Mandatory Licensing Orientation

You cannot submit your application until you’ve attended a DECAL licensing orientation. This isn’t a formality you can skip and catch up on later. DECAL requires it first, full stop. Orientations are offered through your regional DECAL office and occasionally online. Check the KOALA portal or call DECAL at (888) 442-7735 for current schedules. Budget at least two to four weeks to get a seat.

25 Hours of Pre-Service Training

Before you’re licensed, you need 25 hours of approved training covering health and safety, nutrition, and child development. This is provider-specific — not just a one-time box to check, but training documented in your professional record. Some DECAL-approved providers offer these courses free or low-cost, so check before paying for an expensive program. The training goes on your record in the DECAL online professional development system.

Criminal Background Checks

Every staff member — and every household member age 17 or older in a home-based setting — must pass a criminal background check. This isn’t optional and it isn’t just a self-disclosure. Fingerprinting is required through both the Georgia Bureau of Investigation (GBI) and the FBI. Budget time for this. The GBI component can take a couple of weeks, and the FBI check can take longer. Get everyone fingerprinted as early as possible in the process.

CPR and First Aid Certification

Every lead caregiver must hold current CPR and First Aid certification appropriate for the age groups served. Standard adult CPR doesn’t cut it if you’re caring for infants. Make sure certifications cover pediatric CPR and infant CPR as applicable. Renewal timelines vary by certifying organization — typically every two years.

Facility Inspections

Three separate agencies need to sign off on your facility before DECAL issues a license:

Fire Marshal. Your local fire marshal conducts a fire safety inspection. This covers exits, fire extinguishers, smoke detectors, capacity limits, and evacuation plans. For commercial centers, this often triggers required modifications.

Health Department. A health department inspection covers sanitation, handwashing stations, diapering areas, food prep areas (if applicable), and restroom facilities. This is typically coordinated through your local county health department.

Zoning. Before you invest in a facility, verify that your local government’s zoning rules permit a childcare operation at that address. Home-based childcare may require a home occupation permit. Commercial facilities need to be in zones that allow childcare use. This approval needs to happen before inspections — don’t sign a lease or start renovations without it.

License Fees and Renewal

Georgia’s childcare licensing fees are not the biggest expense in this process, but you need to know the structure.

Family Child Care Learning Home: Initial license fee runs $45 to $75.

Child Care Learning Center: Fees vary by licensed capacity. A center licensed for 30 children pays differently than one licensed for 100. DECAL provides a current fee schedule — confirm the exact amount for your planned capacity through the KOALA portal or by calling DECAL directly.

Annual Renewal

All DECAL licenses expire on December 31 each year, regardless of when you first received your license. Renewal fees are due by December 1. If you open in October, you’re renewing in less than three months. Plan for that.

Miss the December 1 deadline and you’re looking at a late fee of up to $250 for payment more than 30 days past due. That’s not catastrophic, but it’s avoidable. Set a calendar reminder in November.

To reach DECAL: (888) 442-7735 (toll-free) or (404) 656-5957. Their full address is on decal.ga.gov with regional office contacts if you need local support.

Georgia-Specific Compliance

The DECAL license is necessary but not sufficient. Running a daycare business in Georgia also means dealing with several other requirements that operate independently of DECAL.

Local Business License + E-Verify and SAVE Affidavits

Georgia doesn’t have a statewide general business license, so you’ll apply for an occupation tax certificate (what most people call a “business license”) from your city or county. When you do, Georgia law requires two additional affidavits that have nothing to do with DECAL:

E-Verify. Under O.C.G.A. § 36-60-6, if your daycare has 11 or more employees, you must register with the federal E-Verify system and provide your user number on the affidavit. If you have fewer than 11 employees, you file an exemption affidavit instead. Daycare centers of any meaningful size almost always hit the 11-employee threshold once you account for staff ratios — more on that below.

SAVE Affidavit. Under O.C.G.A. § 50-36-1, you personally (as the applicant) must verify lawful presence in the United States. This requires notarization and a Secure and Verifiable Document. It applies to every local business license application in Georgia, not just childcare.

Neither of these is optional. Local governments will not issue your occupation tax certificate without them.

Workers’ Compensation Insurance

Georgia requires workers’ compensation coverage when you have 3 or more employees, including part-time workers and officers. The Georgia State Board of Workers’ Compensation oversees this at sbwc.georgia.gov. Daycare centers almost always hit this threshold. Even a small center with a lead caregiver, an assistant, and a part-time aide is already at three. Factor workers’ comp premiums into your insurance budget from day one.

Staff-to-Child Ratios

DECAL sets specific staff-to-child ratios by age group. Infants require more staff per child than school-age kids — significantly more. This directly affects your payroll costs and your revenue ceiling. A room full of infants requires substantially more labor than the same square footage filled with four-year-olds. Review the full DECAL Rules and Regulations document before you finalize your age-group mix and staffing plan, because the ratios will determine how many staff you need on the floor at any given time.

Lead Caregiver Qualifications

The minimum to serve as a lead caregiver in Georgia: age 18 with a high school diploma or GED. That’s the floor. For center director positions and lead teacher roles, DECAL has additional education and experience requirements. If you’re hiring staff rather than operating solo, make sure the people you’re putting in lead roles actually meet the qualifications before you build your staffing plan around them.

Startup Costs at a Glance

Honest answer: home-based and center-based daycares are financially different businesses. Here’s what to expect.

Business Formation

You’ll want to form an LLC before you start operating — it separates your personal assets from business liability, which matters enormously in childcare.

LLC filing: $100 online at ecorp.sos.ga.gov
Annual registration: $60/year (effective September 6, 2025)

DECAL License Fee

Family home: $45–$75
Center: Varies by capacity — confirm with DECAL for your specific situation

Background Checks and Fingerprinting

$50–$100 per person for GBI and FBI fingerprinting. Multiply by your staff count and any household members who need clearance.

Pre-Service Training

Varies widely. Some DECAL-approved providers offer free or subsidized training, particularly through Georgia’s child care resource and referral network. Don’t pay $500 for training before checking whether free options exist.

Facility Modifications

This is where costs diverge sharply.

Home-based: $5,000–$25,000. You may need to add a dedicated bathroom, modify fencing, install commercial-grade smoke detectors, create a safe outdoor play area, or reconfigure interior space to meet DECAL square footage requirements.
Commercial center: $50,000–$200,000+. Leasehold improvements, ADA compliance, separate restroom facilities for different age groups, commercial HVAC, proper egress, outdoor play areas with compliant fencing and surfacing — it adds up fast. Some operators spend more.

Furniture, Toys, and Educational Materials

$3,000–$10,000. Age-appropriate furniture (low tables, nap cots, infant cribs), developmental toys, books, art supplies, outdoor equipment. This number goes up if you’re serving infants, who need individual cribs, not shared mats.

Insurance

$2,000–$5,000/year for a basic policy bundle covering general liability and professional liability for a childcare operation. Center-based programs pay more. Workers’ comp is additional.

Totals

Type	Realistic Range
Home-based (FCCLH or GDCH)	$5,000–$20,000
Commercial center (CCLC)	$75,000–$300,000+

The home-based range assumes you own the property, have a suitable space, and don’t need major structural changes. The center range assumes a leased commercial space that needs meaningful buildout. Both ranges assume you’re not paying yourself during the pre-opening phase.

How to Get Started

The sequence matters. Don’t sign a lease and then discover the zoning doesn’t allow childcare. Don’t hire staff before you’ve checked whether the facility passes fire inspection. Here’s the order that makes sense:

Decide on license type based on your space, capacity goals, and budget.
Attend DECAL licensing orientation — you can’t apply without it.
Verify zoning for your intended location before committing financially.
Form your LLC through the Georgia Secretary of State at ecorp.sos.ga.gov.
Get everyone fingerprinted for GBI and FBI background checks. Early, because it takes time.
Complete 25 hours of pre-service training and document it in the DECAL system.
Make facility modifications to meet DECAL square footage and safety requirements.
Schedule fire marshal and health department inspections.
Apply through the KOALA portal with all documentation in order.
Apply for your local occupation tax certificate with the E-Verify and SAVE affidavits.
Get workers’ comp coverage in place before staff start working.

The 45-to-60-day processing window starts when DECAL considers your application complete — not when you submit it. Missing documents restart the clock. Get everything together before you hit submit.

Call DECAL at (888) 442-7735 if you have questions about your specific situation. They have regional consultants whose job is to help applicants through this process, and talking to one early can save you from an expensive wrong turn.