Child Care / Day Care Permits & Licenses in Frederick, MD

90-day provisional period allowed; CPR/First Aid also required

Required for all LLCs; name reservation ($50) recommended prior to filing

All businesses must register via Maryland Business Express portal

Most commercial day cares qualify as Large Group Child Care Centers

Registration (not license) for informal care of 8 or fewer; license required for 9-12

Requires 90 hours training + 10 hours annual continuing education

Required in each county where business operates

Child care services generally exempt; taxable items must be segregated

Child care services are generally exempt from Maryland sales tax. However, if tangible personal property (e.g., food, supplies) is sold, registration is required. Most child care providers do not collect sales tax on tuition but may need to register if selling taxable items.

Required for all employers in Maryland. Must register to withhold state income tax from employee wages. Applies to full-time, part-time, and temporary employees.

Employers must pay state unemployment insurance (SUI) tax. Rate varies by experience rating; new employers typically pay 2.5%. Tax applies to first $9,000 of each employee's wages annually.

All Maryland LLCs must file an annual report and pay the franchise tax. The franchise tax includes a $150 minimum tax plus 0.0725% of taxable capital or $150, whichever is greater. However, most small LLCs pay the flat $300 fee (includes $150 report fee + $150 tax).

Required for all LLCs (by federal law) and necessary for opening a business bank account, tax filings, and payroll. Apply online via IRS website.

A $10,000 surety bond is required for child care centers and large family child care homes (serving more than 6 children) as part of the licensing process. Small family child care homes (6 or fewer children) are exempt from bonding. The bond protects against violations of child care regulations and ensures financial responsibility.

Required for any vehicle used to transport children. Must meet Maryland’s minimum liability limits: $30,000 bodily injury per person, $60,000 per accident, $15,000 property damage. Additional coverage (e.g., higher limits, passenger liability) strongly recommended. School bus or van use may trigger additional MVA safety inspections.

Most counties and municipalities in Maryland require a local business license or tax registration. Examples: Montgomery County Business License, Baltimore City Unincorporated Business Tax. Contact local clerk’s office for specific requirements. Child care providers may be subject to additional local zoning or health regulations.

LLCs are pass-through entities; while the business itself does not pay income tax, owners must report income on personal returns. The LLC must still register with Maryland as a business entity for tax purposes, especially if it has an EIN or files withholding returns. Ensures compliance with state reporting requirements.

All child care centers in Maryland must be licensed by the Maryland Department of Health. Requirements include staff qualifications, background checks, health and safety standards, and program approval. Renewal required every 3 years with submission of compliance documentation.

Child care businesses must register with SDAT first; local license issued post-registration. Check specific county comptroller site (e.g., https://www.montgomerycountymd.gov/DTS/Business/)

Child care centers often require special exception or conditional use permit in commercial zones. See county zoning ordinance (e.g., Montgomery County Zoning Ordinance §4.6)

Must comply with child care-specific building codes per local adoption of International Building Code

Subject to local sign ordinances limiting size, height, illumination (e.g., Anne Arundel County Code §18.5.4)

Aligns with state COMAR 10.16.07 but administered locally

Requires extinguishers, exits, alarms per adopted fire code (NFPA 101 for assembly occupancies)

Issued after zoning, building, fire, health approvals

Annual inspection often required

Per county zoning code parking ratios (e.g., 1 space per 4 children)

Not explicitly mandated by statute, but strongly implied as part of risk management expectations in licensing standards. Often required by insurers as part of a general liability policy. Covers claims of negligence, supervision failure, or emotional harm. Recommended for all licensed providers.

Not required by Maryland law unless products cause harm. However, if a child care provider sells items (e.g., snacks, crafts) to parents or the public, product liability exposure exists. Coverage typically included in general liability policies. No standalone mandate for child care providers.

Only applicable if the child care provider holds a liquor license (extremely rare for child care). Most child care facilities are prohibited from serving alcohol. If operating a mixed-use facility (e.g., family center with event space), liquor liability insurance would be required. Not typical for standard child care operations.

Required for LLCs with employees or those filing federal employment, excise, or business tax returns. Even sole proprietors without employees may need an EIN if operating under an LLC structure. Apply online at IRS.gov.

LLC taxed as partnership must file Form 1065; single-member LLC taxed as disregarded entity reports on Schedule C. Employers must withhold and pay FICA, federal income tax, and file Form 941 quarterly. Must issue 1099-NEC for contractors paid $600+ annually.

Applies to all employers with employees. Child care providers must maintain a safe workplace, report fatalities or hospitalizations within 8–24 hours, post OSHA poster (required), and keep injury/illness records (Form 300) if over 10 employees. Exempt if under 10 employees or in certain low-risk industries (but child care is not automatically exempt).

All child care providers, regardless of size, are public accommodations under Title III of the ADA. Must make reasonable modifications to policies, practices, and procedures to accommodate children and parents with disabilities. Physical accessibility required for new construction or alterations. Cannot deny enrollment based on disability.

If operating in a pre-1978 building and performing repairs disturbing more than 6 square feet of painted surface (interior) or 20 square feet (exterior), must use EPA-certified renovator and follow RRP rule. Applies to owners and contractors. Child care facilities are considered "child-occupied facilities" under the rule.

FTC enforces truth-in-advertising laws. Child care providers must ensure all marketing (websites, brochures, social media) is truthful, not misleading, and substantiated. Prohibited from making false claims about safety, staff qualifications, accreditation, or capacity. Applies to all businesses offering services to consumers.

FLSA applies to child care workers. Must pay at least federal minimum wage ($7.25/hour) and overtime (1.5x regular rate) for hours over 40/week. Special rules apply: employees working live-in capacity may have modified overtime rules. Child care workers are not exempt from FLSA. Must maintain payroll records for 3 years.

Requires eligible employees (12 months, 1,250 hours) to receive up to 12 weeks of unpaid, job-protected leave for qualifying reasons (birth, adoption, serious health condition). Child care providers meeting employee threshold must comply. Posting requirement (FMLA notice) mandatory.

All U.S. employers must complete Form I-9 to verify identity and work authorization for every employee. Must retain for 3 years after hire or 1 year after employment ends, whichever is later. E-Verify is not mandatory for child care providers unless federal contractor.

While federal law does not require private child care providers to be licensed, participation in CCDF-funded programs (e.g., Maryland's Child Care Subsidy) requires compliance with federal standards, including background checks, health and safety training, and reporting. Most private providers not accepting subsidies are not directly subject, but indirectly affected through state alignment.

Required even for minor improvements

Required for all employers with one or more employees, including part-time. Sole proprietors without employees are exempt but may elect coverage. Child care operations classified under NAICS 624410 (Child Day Care Services) have specific premium rates set by the commission.

While not mandated by statute as a standalone requirement, the Maryland Regulations Governing Child Care Facilities (Title 10A.07) require licensed providers to maintain liability insurance as a condition of licensure. Minimum coverage typically expected is $1 million per occurrence. Required for both center-based and large family child care homes.

Applies to all child care providers using products for children under 12. Must ensure toys, furniture, and equipment meet federal safety standards (e.g., lead, phthalates, small parts). Prohibited from using recalled products. Includes cribs, high chairs, toys. CPSC enforces recalls and safety rules.

Requires compliance with health, safety, staffing ratios, background checks, curriculum, and facility standards. Must submit annual reports, staff training records, and pass inspections. Licensing is mandatory regardless of federal EIN or tax status.

All Maryland LLCs must file an annual report with SDAT by April 15 each year. The report updates ownership, management, and contact information. Failure to file may lead to administrative dissolution.

Child care centers must renew their license biennially. The Office of Child Care conducts background checks, site visits, and compliance reviews during renewal. Application must be submitted at least 60 days before expiration.

All child care facilities must pass an annual fire safety inspection. Inspectors evaluate smoke detectors, fire extinguishers, evacuation plans, and compliance with the Maryland Fire Prevention Code. Results are reported to the Office of Child Care.

Local health departments conduct annual sanitary inspections focusing on food safety, handwashing, diapering procedures, and illness control. Facilities must maintain compliance with Maryland Sanitary Code (10.12.03).

Required for structural safety, egress, and compliance with local building codes. Inspection is part of the child care licensing process and must be passed before license renewal.

EIN is required for tax reporting. While the EIN itself does not expire, businesses must use it for annual and quarterly tax filings. Required if the LLC has employees or is taxed as a corporation.

Employers must file Form MW508 (Withholding Tax Return) quarterly and remit withheld state income taxes. New employers may be required to file monthly initially.

Employers must file Form UIA 101 and pay unemployment insurance tax on first $8,500 of wages per employee. Rate based on experience rating.

Employers must file Form 941 to report federal income tax, Social Security, and Medicare taxes withheld from employee wages.

Filed annually to report Federal Unemployment Tax Act (FUTA) tax. Due even if no tax is owed.

All employers with one or more employees must carry workers' compensation insurance. Coverage must be continuous; lapse results in penalties.

License must be posted in a visible location. Required labor law posters include Maryland Minimum Wage, Workers' Compensation, Unemployment Insurance, and OSHA Safety Rights. Posters available from MD Department of Labor.

All child care staff must complete at least 12 hours of approved continuing education annually, including topics in child development, health, and safety. Training must be documented and retained.

Records must include enrollment, attendance, medication administration, incident reports, staff training, and background checks. Must be available for inspection. Retain for at least 3 years after child or staff departs.

The OCC conducts unannounced monitoring visits at least annually to ensure compliance with licensing standards. May include review of records, staff qualifications, and facility safety.