Complete guide to permits and licenses required to start a child care / day care in Springdale, AR. Fees, renewal cycles, and agency contacts.
Required for all LLCs; includes filing Articles of Organization
All LLCs must file; fee calculated on proportion of business in AR
Required for all child care facilities serving 3+ unrelated children; capacity-based fees detailed at https://humanservices.arkansas.gov/wp-content/uploads/CCL_Fee_Schedule.pdf
Mandatory 2-hour orientation for owners/operators/administrators; prerequisite for facility licensing
Required for all owners, directors, employees, and volunteers with child contact; must renew every 5 years
Required if DBA used; renews every 10 years for $15
Child care services are generally exempt from sales tax in Arkansas when provided as part of licensed child care. However, if the business sells items such as food, beverages, or merchandise, a sales tax permit is required. See A.C.A. § 26-52-302(1)(A).
Employers must register to withhold Arkansas state income tax from employee wages. Registration is done through the DFA’s online portal.
Employers with one or more employees must register for unemployment insurance tax. New employers pay a standard rate of 0.5% for the first year; rates are reassessed annually.
All LLCs registered in Arkansas must file an annual franchise tax report and pay the minimum $150 tax, regardless of business activity or income. The tax is not based on profits but on capital or revenue structure.
Many Arkansas cities (e.g., Little Rock, Fort Smith, Bentonville) require businesses to register and pay an annual privilege tax based on gross receipts. Requirements and rates vary significantly by location. Check with the specific city clerk or finance department.
Although not a state-level requirement, EIN is mandatory for federal tax purposes. Most child care LLCs will need one, especially if hiring staff. Can be obtained online via IRS.
Employers must withhold federal income tax, Social Security, and Medicare (FICA) and file Form 941 quarterly. Federal Unemployment Tax (FUTA) is filed annually via Form 940. Form 944 is for eligible small employers.
Licensed child care providers are exempt from collecting sales tax on food and beverages served to children. Must maintain records and may need to submit exemption form to vendors. See A.C.A. § 26-52-302(1)(A)(vii).
All child care centers must be licensed. Requirements include staff background checks, CPR certification, facility safety standards, child-to-staff ratios, and program curriculum. Inspections are routine.
Required for all businesses; child care providers must also comply with state licensing
Applies to businesses outside city limits; child care specific review may apply
Code of Ordinances Sec. 36-451 et seq.; max 12 children for home occupation
Required for renovations to meet child safety standards
Chapter 36, Article XV of City Code; size/location restrictions
Plan review required for new facilities; Rule 3.2 Food Establishments
NFPA 101 Life Safety Code compliance; sprinklers/extinguishers required
Confirms zoning, building, fire code compliance
Mandatory for assembly/educational occupancies
Sec. 26-1304; stricter limits than state max
Site plan review for sanitation, water quality
Required for employers with three or more employees, regardless of full-time or part-time status. Exemptions apply to sole proprietors who may elect out. Coverage must be obtained from a licensed insurer or through the state fund.
While not mandated by statute directly, the Arkansas Department of Health requires child care facilities to have liability insurance as a condition of licensure under Rule 005.01.10.1. Minimum recommended coverage is $1 million per occurrence. This is enforced through licensing regulations.
A surety bond of $10,000 is required for all licensed child care facilities in Arkansas. The bond ensures compliance with state child care regulations. The bond must be issued by a surety company licensed in Arkansas. Reference: Arkansas Child Care Licensing Handbook, Section 4.2.
Arkansas law requires all motor vehicles registered to a business to carry liability insurance meeting minimum limits: $25,000 bodily injury per person, $50,000 per accident, and $25,000 for property damage. Applies if the day care transports children. Enforcement via DMV registration rules.
Not mandated by Arkansas law or child care regulations. However, it is strongly recommended for protection against claims of negligence, supervision failure, or abuse allegations. Often included in broader liability policies.
Not required by Arkansas law for child care providers unless selling tangible goods. Standard general liability policies typically include limited product liability coverage. Separate coverage may be needed if regularly selling products.
Not applicable to standard child care operations. Required only if alcohol is served or sold, which is highly uncommon and likely prohibited in licensed child care settings. Regulated under Arkansas Alcoholic Beverage Control laws.
Even sole proprietorships without employees may need an EIN if they operate under an LLC structure. The EIN is used for tax filing, banking, and licensing purposes.
LLCs with employees must withhold federal income tax, Social Security, and Medicare taxes. Must also pay Federal Unemployment Tax (FUTA) if paying $1,500+ in wages per quarter.
Child care providers must maintain a safe workplace, post OSHA poster (Form 2203), report fatalities or hospitalizations within 8–24 hours, and keep injury logs (Form 300) if over 10 employees.
Child care facilities are considered 'public accommodations' under Title III of the ADA. Must ensure accessibility for children and parents with disabilities, including physical access, program modifications, and communication aids.
Federal law requires disclosure of known lead-based paint hazards in pre-1978 housing and child-occupied facilities. Applies to leased or owned spaces. Renovation activities in such buildings must be performed by EPA-certified renovators.
Licensed centers may be required to submit quarterly reports on enrollment, staff, and capacity utilization, especially if receiving state or federal subsidies.
Child care providers must ensure all advertising (websites, brochures, social media) is truthful and not misleading. Applies to claims about staff qualifications, safety, curriculum, or capacity. Online privacy policies must comply with COPPA if collecting information from children under 13.
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. Exemptions are rare in this sector. Recordkeeping of hours and wages is mandatory.
Eligible employees must be granted up to 12 weeks of unpaid, job-protected leave for qualifying reasons (e.g., birth of child, serious health condition). Notice posting and certification procedures required.
All employers, including child care LLCs, must verify identity and work authorization for each employee using Form I-9. Employers must retain forms for 3 years after hire or 1 year after employment ends, whichever is later.
Child care services do not require federal licenses from agencies such as FDA, ATF, FCC, or DOT. Licensing is handled at the state level (Arkansas Department of Human Services). However, federal grants or Head Start program participation may impose additional compliance.
Child care providers must ensure all children's products (toys, cribs, furniture) meet federal safety standards, including lead and phthalate limits. Applies to any product designed or intended primarily for children 12 and under.
Children must meet state immunization requirements unless exempt. Records must be maintained and submitted to DHS.
Checks include state and national criminal history, sex offender registry, and fingerprinting. Must be renewed every 3 years.
Child care centers must have working smoke detectors, clear exits, and may be required to conduct fire drills monthly. Contact local fire department for requirements.
All Arkansas LLCs must file an annual report with the Secretary of State to maintain active status. The report includes business address, registered agent, and management structure. Failure to file can lead to loss of good standing or dissolution.
Child care centers must renew their operating license biennially. The renewal process includes a background check update, compliance review, and fee payment. Licensing is based on capacity (number of children served).
All child care facilities must pass an annual fire safety inspection. Inspections include review of exits, fire extinguishers, smoke detectors, and evacuation plans. A copy of the inspection report must be posted on-site.
The ADH conducts annual inspections to ensure compliance with sanitation, food handling, diapering, handwashing, and illness management protocols. Facilities must maintain clean, safe environments per Arkansas Child Care Licensing Rules.
Facilities must comply with state and local building codes, including space per child, ventilation, and accessibility. Inspections ensure structural safety and ADA compliance.
LLCs with employees must file Form 941 quarterly and Form 940 annually. If the business pays contractors over $600, Form 1099-NEC is required annually. Even without employees, an EIN must be maintained.
Employers must register for Arkansas Withholding Tax Account and file returns based on payroll volume. Frequency (monthly or quarterly) is determined by the DFA.
Most child care services are exempt from sales tax, but if taxable items are sold (e.g., food, merchandise), registration and reporting are required. No annual renewal, but returns must be filed as due.
All child care staff must maintain current CPR and pediatric first aid certification from an approved provider (e.g., American Red Cross, American Heart Association).
All personnel must complete annual training on child abuse and neglect identification and reporting requirements under Arkansas law (Act 1477 of 2003).
Required federal posters include Minimum Wage, EEO, FMLA, and OSHA Workplace Safety. Available for free download from DOL website.
The current child care license, inspection reports, and any corrective action plans must be visibly posted for parents and visitors.
Providers must keep up-to-date immunization records, health assessments, and medication authorization forms for each child. Records must be available for inspection.
Providers must keep documentation of staff training (CPR, first aid, CAN), background checks, and qualifications on file at the facility.
Providers must report serious incidents to DCC&EC within 24 hours using the designated form. A written report must follow within 5 days.
Child care services are exempt from Arkansas sales tax under Ruling #10-10. Providers must maintain documentation to support exemption if audited.
The Arkansas Department of Human Services - Division of Child Care and Early Childhood Education requires a $40.00 fee for the annual renewal of a Child Care Facility License, allowing you to legally operate a day care center in Springdale.
No industry-specific federal licenses are required for child care operations, according to the U.S. Small Business Administration, but you must still comply with federal regulations like those from the FTC and IRS.
All staff must undergo a Criminal Background Check Registration through the Arkansas Department of Human Services - Division of Child Care and Early Childhood Education, which costs $42.50 per check and is a one-time requirement.
ADA compliance through the Department of Justice can range from $1000.00 to $10000.00, and is a one-time fee, ensuring your facility is accessible to individuals with disabilities.
The Arkansas Secretary of State requires an annual Franchise Tax payment of $150.00, and an Annual Franchise Tax Report must also be filed annually.
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