Child Care / Day Care Permits & Licenses in New York City, New York

Required for all LLCs; publish notice in newspapers within 120 days (additional ~$500-$2000 cost depending on county)

Applies to all LLCs formed or qualified in NY

Capacity 7-12 children; requires background checks, training, inspections. See regulations at https://ocfs.ny.gov/main/policies/ocfs/618.1.pdf (effective 10/14/2024)

For home-based; requires health/safety inspections, background checks, 15+ hours training. Group family variant for 7-12 with assistant

Commercial centers; strict staffing ratios, fire/safety codes, director qualifications (associate degree + experience)

File with DOS and local county clerk; renew every 5 years? No, one-time but amend if changes

Most child care exempt from sales tax but register if any taxable activity; file returns quarterly/annually

Child care services are generally exempt from sales tax in New York unless they include taxable items such as snacks, meals, or merchandise. However, if the business sells any taxable items (e.g., infant formula, diapers, or educational materials), a sales tax certificate of authority is required. See NY Tax Law § 1105(b)(4) and Department guidance.

All employers in New York must register for withholding tax to collect and remit state income tax from employee wages. This applies regardless of business type. Registration is done through the same system as sales tax (NY Business Express).

Employers with one or more employees must register with the NYS Department of Labor and pay unemployment insurance (UI) taxes. The tax rate varies based on experience rating. New employers pay a fixed rate (currently 2.5% for 2024) on the first $13,000 of each employee's wages annually.

All LLCs in New York are subject to the franchise tax unless they have elected to be taxed as corporations. Most LLCs pay a minimum franchise tax based on income and capital base. For small LLCs, the minimum is $25/year. Filing is annual via Form IT-204-LL. See NY Tax Law Article 9-A.

While not a state tax, EIN is required for federal tax administration. Single-member LLCs without employees may use the owner's SSN, but most child care businesses will need an EIN for banking and licensing. Apply online via IRS website.

All LLCs must file a Biennial Statement with the NYS Department of State. This is not a tax return but a compliance requirement tied to tax and legal standing. Failure to file can result in termination of LLC status.

NYC imposes a Unincorporated Business Tax (UBT) on sole proprietors, partnerships, and LLCs earning income in the city. The tax is 4% of net income for most businesses. Child care businesses structured as LLCs are subject to UBT unless exempt. File Form NYC-540.

By default, a single-member LLC is disregarded for federal tax purposes. Multi-member LLCs are treated as partnerships and must file Form 1065. If the LLC elects to be taxed as a corporation (Form 8832), it must file Form 1120. This is not a registration fee but a compliance requirement.

Required for all buildings used for child care occupancy (Group E or I-4); must match proposed use as child day care center

Child care services permitted as-of-right in most districts (ZR §32-15, §42-06); home-based child care limited to 8 children max (NYC Zoning Resolution §22-33)

Required for converting space to Group I-4 (day care) occupancy; includes child safety features like guardrails, door hardware

Required for Group I-4 occupancies over certain size thresholds; includes fire alarm, sprinklers, egress inspections

Manual and automatic fire alarms required for child day care centers

Must comply with NYC Zoning Resolution sign regulations (§32-41 et seq.)

Required for all group child care (7+ children); includes sanitation, safety inspections; separate from NYS OCFS license

Required if child care provides food beyond snacks; plan review needed

Employers must file NYS-45 (quarterly withholding), NYS-940 (unemployment insurance), and IT-2 (transmit W-2 data) annually. Must also register for NYS Employer Account Number (NA).

Limited to NYC Zoning Resolution §22-33; max 8 children including provider's own; no external alterations

Required for all employers with one or more employees in New York State, including part-time and family members. Sole proprietors without employees are exempt. Child care businesses are classified under Code 0018 (Day Care Centers) for premium calculation.

While not a standalone state law, OCFS licensing regulations (18 NYCRR Part 428 for group family day care; Part 429 for child care centers) require proof of liability insurance as part of the licensing process. Minimum coverage typically $1 million per occurrence and $3 million aggregate. Strongly mandated through regulatory enforcement.

Not explicitly named in regulations, but OCFS requires "liability insurance" covering bodily injury, property damage, and personal injury, which includes negligence claims. This effectively encompasses E&O/professional liability. Required under 18 NYCRR §428-2.5(d) and §429-2.5(d).

Required under 18 NYCRR §427-3.1(c)(1): A family day care provider must file a surety bond in the amount of $20,000 or provide a letter of credit. This does not apply to group family day care homes or child care centers. The bond protects against failure to comply with child care regulations or misuse of public funds.

Employers must file Form 941 (quarterly), Form 940 (annual FUTA), and W-2/W-3 forms annually. Deposit employment taxes according to IRS deposit schedule (monthly or semi-weekly). Even if no employees, must file zero returns if FEIN is active.

Required by N.Y. Ins. Law §3201 and N.Y. Veh. & Traf. Law §310 for all motor vehicles registered to a business. If transporting children, higher liability limits and commercial policies are mandatory. Personal auto policies do not cover commercial use.

Not a separate legal mandate. However, if a child care provider sells tangible goods, they may be liable for defective products. Coverage is typically included in general liability policies. No specific state law mandates standalone product liability insurance for child care providers.

Not applicable to standard child care operations. Only required if the business holds a liquor license, which is extremely rare for child care providers. No child care licensing regulation permits alcohol service in facilities serving minors.

Even single-member LLCs without employees may need an EIN to open a business bank account or if they elect corporate taxation. This is a federal requirement for tax administration.

Child care businesses structured as LLCs follow pass-through taxation unless they elect to be taxed as a corporation. Self-employment taxes apply to net income reported on Schedule C.

OSHA does not cover self-employed individuals without employees. Required postings include the OSHA Job Safety and Health poster (Form 2203).

Child care facilities are considered public accommodations under Title III of the ADA. Must ensure physical access, reasonable modifications, and equal opportunity for children with disabilities. Applies regardless of number of employees.

LLC must ensure that any paid renovation work (e.g., painting, repairs) is conducted by EPA-certified renovators. Does not apply to routine maintenance.

Child care providers must avoid deceptive advertising (e.g., false claims about accreditation, staff qualifications, or safety). Applies to websites, brochures, and social media. Must honor privacy policies under the FTC’s authority.

All U.S. employers, including child care LLCs, must verify identity and work authorization using Form I-9. Employers must retain forms for 3 years after hire date or 1 year after employment ends, whichever is later.

Child care workers must be paid at least federal minimum wage ($7.25/hour) and receive overtime pay (1.5x regular rate) for hours over 40/week. Some exemptions may apply, but most child care staff are non-exempt.

If threshold is met, 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).

Child care providers must ensure that all children’s products (e.g., toys, cribs, furniture) meet federal safety standards, including lead and phthalate limits. Applies to all providers, regardless of size or licensing status.

There is no federal license required to operate a child care business. Licensing is handled at the state level (New York State Office of Children and Family Services). However, federal tax and employment laws still apply.

All LLCs in New York must file a Biennial Statement with the NYS Department of State. Due every 2 years, not annually. First filing due two years after initial registration. Fee is $9. Failure to file results in administrative dissolution.

All child day care programs (including day care centers and group family day care homes) must be licensed by OCFS. License must be renewed annually. Includes on-site inspection as part of renewal process. Fee is $100 per year. License posted visibly at facility.

Required under NYS Uniform Fire Prevention and Building Code (8 NYCRR Part 123). Certificate of Compliance must be obtained annually from local fire authority. Includes inspection of exits, alarms, extinguishers, and hazardous materials. Copy must be posted on premises.

Facilities that serve meals or snacks must comply with local health codes. Inspections cover food storage, handling, sanitation, and pest control. Some localities require food handler training. Records of inspections must be retained for 3 years.

Required postings include: Minimum Wage Poster, Sexual Harassment Prevention, Paid Family Leave, Unemployment Insurance, Workers’ Compensation, and Wage Theft Prevention Act notice. Posters must be in English and any primary language spoken by employees. Available for free download from NYSDOL website.

Original or certified copy of the current child day care license must be posted in a prominent, publicly visible location at the facility. Required by OCFS licensing regulations.