Complete guide to permits and licenses required to start a child care / day care in Montgomery, AL. Fees, renewal cycles, and agency contacts.
Required per International Building Code as adopted locally; child care facilities have specific safety standards
Required for all LLCs. Annual Report also required ($100 fee, due by April 15 anniversary date).
Serves as state business privilege license/tax. All LLCs must file regardless of activity.
Required for all child care facilities serving 7+ children (exemptions for <7 under specific conditions). Includes background checks, inspections, training.
Prerequisites include 16-hour orientation training, CPR/First Aid, background checks ($25-50/fingerprinting), facility inspection. Director requires high school diploma + experience.
Statewide filing recommended for LLCs; county optional but local publication often required (~$50).
Required for all owners, directors, employees, volunteers with unsupervised child access.
Child care services themselves are generally exempt from Alabama sales tax. However, if the business sells items such as food, drinks, or school supplies to parents or children, those sales may be taxable. A sales tax license is required to collect and remit tax on such sales. See AL DOR Policy Statement 10.01.01(1).
All employers in Alabama who pay wages subject to federal income tax withholding must register for Alabama withholding tax. This includes child care centers with employees. Registration is done via Form ALCY-1 through the My Alabama Taxes (MAT) system.
Employers with one or more employees working one or more days in a calendar week must register. Applies to full-time, part-time, and temporary employees. Independent contractors are excluded if properly classified.
All Alabama LLCs must file an Annual Report and pay the Business Privilege License tax. This is not based on income but is a flat fee. The report is filed with the Secretary of State and includes ownership and address information. Due annually on the anniversary month of formation.
Most cities and counties in Alabama impose a business privilege tax or license fee. For example, the City of Birmingham requires a Business Privilege License. Fees and requirements vary. Contact the local revenue department where the business operates. Required even if the business is home-based.
Although not a 'state' tax, EIN is required for all state tax registrations involving employees or withholding. Single-member LLCs with no employees may use SSN, but EIN is recommended. Required for opening business bank accounts and state tax accounts.
All child care centers must be licensed. Inspections assess safety, staff-to-child ratios, staff qualifications, and program curriculum. Renewal required annually.
Required in all Alabama counties for LLCs; fee schedules published by each county revenue commissioner
Every Alabama municipality requires its own business license; check specific city code (e.g., Birmingham City Code Sec. 4-1)
Child care centers often require special use permit in residential zones; e.g., Jefferson County Zoning Ordinance Article 4
Mandatory for licensed child care; includes sprinklers, exits, extinguishers per local fire code
Local county health departments conduct pre-operational inspections; separate from state minimum standards license
Required under Alabama Food Service Code; many child cares need this
Verifies compliance with building, fire, zoning codes; e.g., Mobile City Code Ch. 80
Governed by local sign ordinances; size/location restrictions apply
NFPA 72 standards; annual testing often required
Alabama law mandates workers' compensation insurance for employers with five or more employees (full-time or part-time). Sole proprietors and businesses with fewer than five employees are exempt unless they contract with a public entity requiring coverage. Coverage must be obtained from an authorized insurer or through the state fund.
While not mandated by statute directly, the Alabama Department of Human Resources requires licensed child care providers to maintain general liability insurance as a condition of licensure. Minimum coverage typically $1 million per occurrence. Required to protect against claims of bodily injury, property damage, or personal injury occurring on premises.
A surety bond of $10,000 is required for all child care centers and group homes applying for licensure in Alabama. This bond ensures compliance with state child care regulations and may be used to cover fines or restitution due to regulatory violations. Bond must be issued by a surety company licensed in Alabama.
Alabama law requires all motor vehicles registered to a business to carry minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, and $25,000 for property damage. This applies if the child care business owns or operates any vehicle used to transport children or for business purposes.
Not currently mandated by Alabama law or DHR regulations, but strongly recommended for child care providers to protect against claims of negligence, supervision failure, or improper discipline. Some private insurers or lease agreements may require it. Not a condition of licensure but considered a best practice.
Not mandated by Alabama state law for child care providers. However, if the business sells tangible goods (e.g., infant formula, snacks, or merchandise), product liability coverage is advisable to protect against claims of harm due to defective or unsafe products. Typically covered under broader general liability policies.
Only applicable if the child care business operates a facility where alcohol is served or sold, which is highly unlikely. Child care providers are prohibited from having alcohol accessible to minors. This requirement does not apply to standard child care operations in Alabama.
While not insurance per se, obtaining a child care license from DHR requires compliance with insurance and bonding mandates including a $10,000 surety bond and general liability insurance. This is the foundational regulatory requirement that triggers all related insurance obligations.
Not explicitly mandated, but required under Alabama’s data breach laws if a breach occurs. Increasingly expected by insurers and funders.
All LLCs providing child care services should obtain an EIN even without employees to facilitate tax compliance and business banking. Application is free via IRS website.
Child care LLCs must file annual federal tax returns based on their elected or default tax classification. If the LLC has employees, it must also withhold and report payroll taxes (Form 941, Form 940).
Child care providers with employees must provide a safe workplace, maintain injury logs (OSHA Form 300 if 11+ employees), and train staff on bloodborne pathogens and emergency procedures.
Child care businesses are considered "public accommodations" under Title III of the ADA. Must allow children with disabilities unless a direct threat exists, make reasonable modifications, and ensure facilities are accessible to staff and families with disabilities.
Child care providers must be certified under the EPA's Renovation, Repair, and Painting (RRP) Rule if they perform renovations. Third-party contractors must also be certified.
Child care providers must ensure advertising is truthful and non-deceptive. If collecting personal information from children under 13, must comply with the Children's Online Privacy Protection Act (COPPA), including obtaining parental consent.
Child care workers must be paid at least federal minimum wage ($7.25/hour) and overtime (1.5x regular rate) for hours over 40/week. Some exemptions may apply for administrative staff.
Covered employers must provide eligible employees up to 12 weeks of unpaid, job-protected leave for qualifying family and medical reasons, including newborn or adopted child care.
All employers must complete Form I-9 to verify identity and work authorization for every new hire. E-Verify is not federally required but may be mandated by state law or federal contracts.
There is no federal licensing requirement for child care providers. Licensing is administered at the state level (Alabama Department of Human Resources). However, participation in federal programs (e.g., Child Care and Development Fund) may require compliance with federal standards.
All child care businesses in Alabama must be licensed by DHR. Exemptions are narrow and do not apply to advertised, regular care services.
File online via the Secretary of State portal. Keep a copy of the filed report for records.
If the LLC is taxed as a corporation, file Form 20. Estimated tax payments may be required.
LLC taxed as partnership files Form 1065; if electing corporate tax, file Form 1120.
Required if annual tax liability is expected to exceed $500.
File electronically via the Alabama UI portal.
Renew online; must submit updated staff qualifications and health inspection reports.
Minimum 6 hours of approved professional development per staff member annually.
Inspection covers sanitation, food handling, and child‑to‑staff ratios.
Must maintain working smoke detectors, fire extinguishers, and an evacuation plan.
Check with the city or county zoning office for specific requirements.
Required records include attendance logs, immunization records, staff qualifications, incident/accident reports, and financial statements.
Post in a conspicuous area accessible to all employees.
License must be posted in a location visible to parents and regulators.
Report must include total enrollment, staff qualifications, and any incidents.
Register for a sales tax permit and file electronically.
Check with the city or county where the facility is located.
The annual renewal fee for a Child Care Facility License with the Alabama Department of Human Resources is $25.00. This license is essential for legal operation.
No, there are currently no industry-specific federal licenses required for child care facilities. However, you must still comply with federal regulations like those from the FTC.
The Alabama Department of Revenue requires annual renewal of the Business Privilege Tax Registration, with a fee of $100.00. This is crucial for maintaining good standing.
The Health Department Facility License, costing $25.00 annually, includes a sanitation inspection to ensure your facility meets health and safety standards. This is handled through local offices of the Alabama Department of Public Health.
All staff members must undergo a Statewide Criminal Background Check through the Alabama Department of Human Resources via ABI, costing $45.25 per check. This is a mandatory requirement for ensuring child safety.
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