Daycare Indianapolis, IN

Permits You Need to Open a Daycare in Indianapolis, IN

9 permits identified. Last verified: February 2026.

Quick answer

Opening a daycare in Indianapolis requires 9 permits costing approximately $1,500-$3,500 in the first year, not including liability insurance. The FSSA Child Care License ($25-$100) is the primary permit, but the real cost is in mandatory background checks and facility upgrades. Indianapolis requires all daycare facilities to pass a fire safety inspection by the Indianapolis Fire Department before licensure.

Opening a daycare in Indianapolis involves one of the more heavily regulated permitting processes due to child safety requirements. The Indiana Family and Social Services Administration (FSSA) is the primary licensing authority, but you will also interact with the Indianapolis Fire Department, Marion County Health Department, and city zoning officials.

The most time-consuming aspect is typically the FSSA licensing process, which includes a comprehensive facility review, staff qualification verification, and background checks for every person who will have contact with children. Plan for the licensing process to take 60-90 days from a complete application. All staff must also complete 20 hours of training annually on topics prescribed by FSSA.

New daycare operators should verify zoning before signing a lease. Many residential areas in Indianapolis allow home-based daycares for up to 10 children, but center-based care (11+ children) generally requires commercial or institutional zoning. Applying for a zoning variance adds 4-8 weeks and is not guaranteed approval, so confirm zoning compatibility with the Department of Business and Neighborhood Services early in your planning.

Required permits and licenses

1

Child Care Center License

Required for any facility caring for more than 5 unrelated children. Application includes facility floor plan, staffing plan, and proof of staff qualifications. Initial provisional license valid for 1 year.

Indiana Family and Social Services Administration (FSSA) Annual $25-$100
2

National Background Check

All staff, volunteers, and household members (for home daycares) must pass a comprehensive background check including FBI fingerprint check, state criminal history, sex offender registry, and child abuse registry.

Indiana Family and Social Services Administration (FSSA) Every 3 years $20-$50 per person
3

Fire Safety Inspection

Mandatory fire inspection before FSSA license issuance. Must meet NFPA Life Safety Code standards for childcare occupancy, including proper egress, smoke detection, and fire extinguisher placement.

Indianapolis Fire Department Annual $75-$150
4

Indianapolis Business License

General business license required for all businesses operating in Marion County. Must be obtained before opening.

City of Indianapolis Office of Finance Annual $50-$90
5

Certificate of Occupancy

Required to confirm the facility meets building codes for daycare use. Zoning must allow childcare in the chosen location. Residential conversions typically require a variance.

City of Indianapolis Department of Business and Neighborhood Services Per location change $150-$300
6

Indiana Registered Retail Merchant Certificate

Required if selling any taxable goods (snacks, supplies). Childcare services themselves are exempt from Indiana sales tax.

Indiana Department of Revenue No expiration $25
7

Employer Identification Number (EIN)

Federal tax ID required for hiring employees, payroll tax withholding, and business bank accounts.

IRS No expiration Free
8

Indiana LLC Registration

LLC formation with the Indiana Secretary of State. Biennial report due every 2 years ($32 filing fee). Liability protection is especially important for childcare businesses.

Indiana Secretary of State Biennial report $95
9

CPR and First Aid Certification

Indiana requires all lead caregivers to maintain current pediatric CPR and first aid certification. Must include infant and child CPR training.

American Red Cross or equivalent provider Every 2 years $35-$80 per person

Disclaimer: This information is sourced from official government records and verified as of February 2026. Permit requirements can change. Always confirm with the issuing agency before making business decisions. This is not legal advice.

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