Complete guide to permits and licenses required to start a child care / day care in Fort Collins, CO. Fees, renewal cycles, and agency contacts.
Required for all LLCs to legally form the entity. Online filing via Atyim system.
Annual report required for all LLCs to maintain good standing.
Mandatory for all child care facilities serving 4+ children not in own home (center) or home-based with specific capacities. Application requires background checks, facility inspection, training. See fee schedule: https://dec.colorado.gov/documents/child-care/child-care-center-licensing-fees-effective-january-1-2023
Required for center directors; prerequisites include education (e.g., early childhood degree) or equivalent experience/training hours. Home-based providers have separate qualifications.
Staff must meet specific education/experience levels based on child age group and facility type (e.g., 9 credits ECE for preschool teachers).
Required if LLC uses DBA; renews with periodic report.
Providers must contract/enroll to receive CCAP reimbursements; requires licensing first.
Child care services are generally exempt from Colorado sales tax. However, if the business sells items such as food, drinks, or school supplies to parents, a sales tax license may be required. See C.R.S. § 39-26-104(3)(a)(I) for exemption of child care services.
Required for all employers in Colorado who withhold state income tax from employee wages. Registration is done via the same Colorado Business Portal used for sales tax.
LLCs are pass-through entities; income is reported on owners' personal Colorado income tax returns (Form 104). Business itself does not pay state income tax unless electing corporate taxation.
Employers must register with Colorado’s Unemployment Insurance system. New employers pay 0.014% (1.4% of first $14,000 per employee) for the first 1–5 years. Rate may change annually.
Even single-member LLCs without employees may need an EIN to open a business bank account. Obtained via IRS Form SS-4 or online application.
Colorado does not impose a franchise tax or gross receipts tax on businesses. This is not required for child care LLCs or any other business type in Colorado.
Most cities in Colorado (e.g., Denver, Colorado Springs, Aurora) require a local business license or pay a privilege tax. Fees and requirements vary. Check with city clerk or local government website. Example: Denver Business License - https://www.denvergov.org/content/denvergov/en/denver-business-license.html
No excise, tourism, or food-specific taxes apply to child care services in Colorado. Child care services are exempt from sales tax under C.R.S. § 39-26-104(3)(a)(I). Meals provided as part of care are not separately taxed.
All child care centers must be licensed. Home-based day cares serving 3+ unrelated children also require licensing. Renewal required annually.
Specific child care center license required under Denver Revised Municipal Code Chapter 12, Article VI. Separate from state license.
Family child care homes allowed in residential zones; centers require zoning use approval.
Required for structural changes to meet child care occupancy standards (Denver Building Code).
Must comply with International Fire Code as adopted by Denver; annual reinspection may apply.
Required if providing food beyond snacks; Denver Health Code 23-12.
General business license; child care must also have state license posted.
Limited to 8 children; traffic/nuisance review required.
Child care exempt from city business license but must comply with zoning/fire codes.
Home occupation permit for family care homes ($50 fee).
Max 8 non-related children; neighbor notification required.
Complies with 2021 International Fire Code.
Mandatory for all employers with one or more employees in Colorado, including part-time and family members over age 18. Sole proprietors without employees are exempt but may elect coverage. Child care businesses typically fall under classification code 5022 (Daycare - Non-Medical).
Not a standalone state insurance mandate, but required as part of child care licensing under Rule 7.704.2.1 of the Colorado Child Care Rules. Minimum $1 million per occurrence and $2 million aggregate coverage recommended. Enforced through licensing process.
A surety bond of $25,000 is required under Colorado Child Care Rule 7.704.2.1 for all licensed child care centers and large family child care homes. Small family child care homes are exempt from bonding but must meet alternative financial responsibility requirements. Bond ensures compliance with state child care regulations.
Colorado law requires all motor vehicles registered to a business to carry liability insurance with minimums of $25,000 bodily injury per person, $50,000 per accident, and $15,000 for property damage (25/50/15). Applies if the LLC owns or regularly uses vehicles for child transport.
Not legally required by Colorado state law or child care regulations, but strongly recommended for protection against claims of negligence, supervision failure, or emotional harm. Often included in broader liability policies.
No specific product liability insurance mandate for child care providers in Colorado. However, if the business sells tangible goods (e.g., prepared food, child-made crafts), general liability insurance should cover product-related claims. Not enforced separately by state agencies.
Only applicable if the child care business holds a liquor license, which is extremely rare and generally prohibited in facilities serving minors. Most child care providers are not eligible for liquor licenses. Mandated only if alcohol service is authorized.
While no industry-specific federal licenses are required for child care, you must comply with FTC advertising regulations, ADA standards, and IRS tax obligations, including filing requirements and potential insurance needs.
ADA compliance through the Department of Justice can range from $1000.00 to $10000.00, depending on the necessary modifications to your facility to ensure accessibility for individuals with disabilities.
The cost of a Child Care License from the Colorado Department of Early Childhood varies depending on whether you are operating a center or a home-based facility, ranging from $100.00 to $500.00, and requires annual renewal.
Ongoing federal tax obligations include annual filing of your Federal Income Tax Return with the IRS, and potentially self-employment tax obligations depending on your LLC structure, with fees varying based on income.
Professional Liability/Errors & Omissions Insurance is not mandated by Colorado state law, but it is highly recommended to protect your business from potential lawsuits, with premiums typically ranging from $800.00 to $2500.00.
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