Child Care / Day Care Permits & Licenses in Durham, NC

Required for all LLCs. Annual report filing also required ($200 fee, due by April 15 each year).

Applies to all LLCs in good standing.

Applies if business uses a name different from LLC's legal name on Articles of Organization. Expires after 4 years; renewal $26.

Required for all child care facilities serving 3+ unrelated children for pay. Fees vary by capacity (see fee schedule at https://ncchildcare.ncdhhs.gov/PDF_forms/fee_schedule.pdf). Prerequisites include facility inspections, staff qualifications, training, and compliance with NC Child Care Rules (.1200 standards).

Administrator must hold NC-approved credentials (e.g., 9-month qualification period with education/experience). Renewal every 3 years with 10 hours training.

Required for all staff providing direct care in licensed child care facilities (Rule .0802). Pediatric CPR/First Aid specifically.

Per NC Fire Code; monitored systems need annual certification.

Verifies compliance with building, fire, zoning codes.

Limits traffic, signage; varies (e.g., Wake County UDO Sec. 4.4.1).

Must provide required parking spaces per local UDO (e.g., 1 space per 10 children).

Mandatory for all employers with three or more employees in North Carolina (including part-time). Agricultural and domestic workers are exempt unless employing 10 or more workers. Child care businesses typically fall under 'social services' classification. Sole proprietors without employees are not required to carry coverage for themselves but may elect to do so.

Required per Rule .0304; includes evacuation, shelter-in-place, and reunification procedures. Annual review and update required.

Child care services are generally exempt from sales tax in NC, but any separately charged taxable items (e.g., food, merchandise) require collection and remittance of sales tax. Registration is required if collecting sales tax.

Required for all employers in NC. Employers must withhold state income tax from employee wages and remit quarterly or monthly based on liability level.

Employers must register with DES and pay annual unemployment insurance tax. Rate and wage base subject to annual adjustment.

All LLCs in NC must file an annual report and pay a franchise tax or minimum annual fee. This is not a traditional franchise tax but a flat annual fee for LLCs regardless of revenue.

Many municipalities require a local business license or privilege tax. Examples include Charlotte, Raleigh, and Greensboro. Contact local clerk for specific requirements.

Required for all LLCs with employees or those filing business tax returns. Even single-member LLCs should obtain an EIN for banking and liability separation.

Default LLCs are pass-through; income reported on owner's personal return. If taxed as a corporation, must file NC-54 or NC-54K. Most child care LLCs are pass-through and not subject to corporate income tax.

FUTA is a federal employer tax. Most child care employers meet the threshold and must register using Form 940.

Child care services are exempt from sales tax, but if food is sold separately (not included in tuition), it may be taxable. Prepared food is taxed at full rate. Contact NCDOR for clarification.

Not applicable to leased facilities. Owners of child care centers on owned property must pay annual property tax assessed by county.

Local zoning approval must be obtained from city/county planning department. Child care homes limited to residential zones; centers may require special use permit. See local municipal code (e.g., Charlotte: Code § 9.503; Raleigh: UDO 10.2.5).

Governed by NC State Building Code (2018 edition effective 1/1/2021). Plans must meet child care occupancy standards.

Must comply with NFPA 101 Life Safety Code for Group E (Educational) occupancy. Annual re-inspection often required.

Covers facility cleanliness, water quality, pest control. Food service requires additional food permit if meals provided.

Not a direct state mandate for all businesses, but required by DCDEE as part of child care licensing standards. Facilities must maintain general liability insurance with minimum coverage of $1 million per occurrence. Applies to both center-based and large family home providers.

A surety bond of $10,000 is required for all licensed child care centers and large family child care homes. The bond ensures compliance with state child care laws and regulations. Small family homes (under 6 children) are exempt from bonding requirement. Bond must be issued by a surety licensed in North Carolina.

North Carolina law requires all motor vehicles registered to a business to carry liability insurance with minimum limits of $30,000 bodily injury per person, $60,000 per accident, and $25,000 for property damage (30/60/25). Applies if transporting children or using business vehicles for any purpose.

While not explicitly mandated by statute, the DCDEE Licensing Manual strongly recommends professional liability (E&O) insurance as part of best practices for risk management. It is often considered a de facto requirement during licensing inspections, especially for centers. Covers claims of negligence, supervision failure, or improper discipline.

Not a direct state mandate for insurance, but businesses selling tangible products assume liability risk under North Carolina product liability law. If the child care business sells items such as infant formula, snacks, or merchandise, product liability coverage is strongly advised. No state agency mandates this insurance specifically, but civil liability exposure exists.

Only applicable if the child care business serves alcohol, which is highly unlikely and generally prohibited in licensed child care settings. No child care facility licensed by DCDEE would be permitted to serve alcohol in proximity to children. Therefore, this is not a practical requirement for standard operations.

The DCDEE Licensing Manual requires child care facilities to maintain fire and extended coverage insurance on buildings and contents used for child care. Minimum coverage should reflect replacement value of the facility and equipment. Applies to both owned and leased spaces used for child care services.

EIN is required for tax reporting and compliance. Even single-member LLCs providing child care should obtain an EIN to separate personal and business finances and comply with IRS rules.

Multi-member LLCs are taxed as partnerships and must file Form 1065; single-member LLCs are disregarded entities and report income on Schedule C of Form 1040. All owners must pay self-employment tax on net earnings.

Complies with NC Food Code (2A NCAC 18A .2600). Many day cares trigger this.

Must comply with local sign ordinances (e.g., max size, lighting restrictions).

Requires eligible employees to be granted up to 12 weeks of unpaid, job-protected leave for qualifying family and medical reasons. Most small child care providers in NC do not meet the 50-employee threshold.

All employers must complete Form I-9 to verify identity and work authorization for each employee. Applies to U.S. citizens and non-citizens alike.

There is no federal license required to operate a child care or day care business. Licensing is handled at the state level (NC Division of Child Development and Early Education). Federal agencies do not issue operating licenses for child care.

Many licensed child care centers in NC participate in CACFP to provide free meals and receive reimbursements. Must follow USDA meal patterns, maintain records, and undergo reviews.

All North Carolina LLCs must file an Annual Report with the Secretary of State. The report updates business information and maintains good standing. Filed online via the Secretary of State’s website.

All child care centers must renew their license annually. Renewal application must be submitted at least 30 days before expiration. Includes background checks, inspection, and compliance review.

Child care facilities are classified as Assembly Occupancies and require annual fire safety inspections. Conducted by local fire departments or state fire inspectors.

Inspections conducted by local health departments to ensure compliance with sanitation, food handling, water supply, and sewage disposal standards under NC Child Care Rules.

Directors must complete 10 hours of continuing education every 24 months, including at least 1 hour in Sudden Infant Death Syndrome (SIDS) prevention and 1 hour in child abuse prevention.

LLCs taxed as corporations must file Form NC-500. Franchise tax applies to all LLCs; minimum franchise tax is $200. Due annually regardless of income.

LLC taxed as a corporation files Form 1120; multi-member LLC taxed as partnership files Form 1065. Single-member LLC may be disregarded or file as sole proprietorship (Schedule C).

Required for LLCs with net income subject to self-employment or income tax. Payments made via Form 1040-ES or EFTPS.

Required for LLCs making income or franchise tax payments. Paid electronically via NCDOR eFile & Pay system.

Employers must file Form NC-5 and remit withheld state income tax. Frequency determined by NCDOR based on payroll size.

LLC with employees must file employment tax returns (Form 941 quarterly, Form 940 annually). EIN is required but does not expire.

Employers must provide a safe workplace, including hazard communication training, accessible first aid supplies, and reporting of work-related injuries. OSHA does not regulate private homes with fewer than 11 employees unless state plan (NC) imposes stricter rules.

Child care providers must make reasonable modifications to policies and practices to accommodate children and parents with disabilities. Physical accessibility is required for facilities serving the public. Applies regardless of number of employees.

Requires use of EPA-certified renovators and lead-safe work practices under the Renovation, Repair, and Painting (RRP) Rule. Applies to child care centers in pre-1978 housing or facilities.

Prohibits deceptive advertising, including false claims about accreditation, staff qualifications, or safety. Applies to all public-facing materials including websites and brochures. FTC enforces truth-in-advertising standards.

Requires payment of federal minimum wage ($7.25/hour) and overtime (1.5x regular rate for hours over 40/week). Applies to all employees regardless of role. Child care workers are not exempt from FLSA.

Required for all employers with employees. Poster informs workers of their rights under OSHA. Available in English and Spanish.

Employers must display the 'Employee Rights in the Workplace' poster, which includes minimum wage, overtime, and anti-discrimination laws.

The current child care license must be clearly posted where parents can see it upon entry. Required for all licensed facilities.

Required records include attendance, medication administration, staff training, incident reports, and background checks. Must be available for inspection.

Criminal history record checks through NCDPS and SBI. Required for all individuals over 18 in the household for family child care homes.