Child Care / Day Care Permits & Licenses in Nashville, TN

Required for all LLCs; annual report required separately (see below)

Applies to all LLCs; fee based on number of members/managers (e.g., $300 for 1, $600 for 2)

Required for all family/child care homes and centers serving 1+ unrelated children; capacity-based tiers (I-V)

Filed with county Register of Deeds or Secretary of State; required if using trade name

Voluntary federal program administered by state; required for reimbursement if applicable

Required for all staff, volunteers, owners; includes FBI/TBI checks via TennCare-approved vendor

Child care services are generally exempt from Tennessee sales tax unless they include taxable components such as food, merchandise, or extended educational programs deemed taxable. However, registration is required if any taxable sales occur. See Tenn. Code Ann. § 67-6-201 and T.D.O.R. Rule 1320-05-01-.132.

FTC enforces truth-in-advertising laws. Child care businesses must ensure all marketing (websites, brochures, social media) is truthful, not misleading, and substantiated. Applies to claims about safety, staff qualifications, curriculum, or accreditation. Also includes compliance with the FTC’s Endorsement Guides if using testimonials.

All U.S. employers, including child care LLCs, must complete Form I-9 for each employee to verify identity and work authorization. Employers must retain forms for 3 years after hire or 1 year after employment ends, whichever is later. Enforced by DHS and DOL.

FLSA applies to child care workers. Employees must be paid at least $7.25/hour and overtime (1.5x regular rate) for hours over 40 in a workweek. Some exemptions may apply, but most child care staff are non-exempt. Applies to all employers with employees engaged in interstate commerce (broadly interpreted).

Requires covered employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Child care businesses must comply only if they meet the 50-employee threshold. Most small child care LLCs are exempt, but must post the required FMLA notice regardless.

Required for all employers in Tennessee to withhold state income tax from employee wages. Tennessee does not have a state income tax on wages, but employers must still register to report and remit any local income taxes (e.g., in cities like Nashville with occupational taxes).

All employers with one or more employees must register. Tax rate varies by experience rating; new employers pay 2.7% on first $7,000 of wages per employee annually (as of 2024).

All LLCs conducting business in Tennessee are subject to franchise and excise tax. This is an annual obligation regardless of income. Filing required even if no tax is due. See Tenn. Code Ann. § 67-4-2002.

Required in most Tennessee cities (e.g., Nashville, Memphis, Knoxville). Must be renewed annually. Child care businesses are typically classified under 'Personal Services' or 'Child Care Services'. Verify with city clerk or county trustee. See Tenn. Code Ann. § 67-4-601.

Required for federal tax reporting. Single-member LLCs with no employees may use owner’s SSN, but EIN is recommended for privacy and compliance. Obtained via IRS Form SS-4 or online.

Requires compliance with staffing ratios, health and safety standards, background checks, and program requirements. Renewal required annually.

All businesses operating in unincorporated county areas require a county business license classified under child care services. Specific county assessor offices handle issuance (e.g., Davidson County: https://www.nashville.gov/departments/county-clerk/business-tax)

Required for all businesses in incorporated cities. Example for Nashville (Davidson County); check specific city code (Nashville Code Sec. 5.04.010). Shelby County/Memphis: https://www.shelbycountytn.gov/574/Business-Tax

Child care centers (7+ children) often require special use permit or conditional use in residential zones. Home-based (4+ children) may need home occupation permit. See local zoning ordinance (e.g., Nashville Metro Code Chapter 17.36).

Required for family child care homes. Limits on traffic, signage, employees. Varies by locality (e.g., Knox County Zoning Ordinance Sec. 3.10).

Required for any building changes to meet child care facility standards. Must comply with International Building Code as adopted locally.

Annual fire inspection required for all child care agencies. Local fire dept conducts; must meet NFPA 101 Life Safety Code. Capacity limited by exits, sprinklers.

Local health depts inspect for sanitation, water quality, lead, radon before state approval. Ongoing compliance required (TCA 68-11-201 et seq.).

Required if providing food service. Must have certified food manager. See county health dept fee schedule (e.g., Shelby County: https://www.shelbytnhealth.com/378/Food-Service)

Verifies compliance with building, fire, zoning codes for child care use.

Comply with local sign ordinance (e.g., Nashville Code Sec. 17.88). Freestanding signs often restricted in residential zones.

The Child Abuse Prevention and Treatment Act (CAPTA) requires entities receiving federal child welfare funds to comply with state reporting mandates. While not a direct federal reporting requirement for all providers, federally funded child care programs must ensure staff report suspected abuse per state law. Indirect federal mandate through funding conditions.

Most child care centers are not required to participate in EAS. Only applies if the facility operates a broadcast transmitter. Not typical for standard child care LLCs.

While FDA does not directly regulate child care kitchens, the Federal Food, Drug, and Cosmetic Act prohibits adulterated or misbranded food. Facilities serving food must follow FDA Food Code guidelines, often adopted by state health departments. Federal oversight is indirect but enforceable under public health law.

All Tennessee LLCs must file an annual report with the Secretary of State. The report includes business name, registered agent, and principal office address. Failure to file may lead to administrative dissolution.

All child care facilities in Tennessee must be licensed by TDHS. Licenses are issued for a two-year period. Renewal requires compliance with Minimum Licensing Standards for Child Care Facilities.

Monitored systems must be inspected annually. NFPA 72 compliance.

Required for employers with five or more employees in Tennessee (Tenn. Code Ann. § 50-6-102). Agricultural and domestic workers may be exempt. Sole proprietors are not required to cover themselves unless they elect coverage. Child care businesses typically exceed the threshold due to staffing needs.

While not codified as a standalone insurance mandate, the Tennessee Child Care Rules (Tenn. Comp. R. & Regs. 1240-07-04-.08) require facilities to have liability protection sufficient to cover risks associated with operations. This is interpreted and enforced as general liability insurance (minimum $1 million per occurrence). Required for licensing.

A surety bond of $10,000 is required for all licensed child care centers and group homes under Tenn. Comp. R. & Regs. 1240-07-04-.08(1)(a). The bond ensures compliance with state child care regulations. Bond must be issued by a surety company licensed in Tennessee.

Tennessee law (Tenn. Code Ann. § 55-12-106) requires all motor vehicles registered to a business to carry minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, and $10,000 for property damage (25/50/10). Applies if transporting children or staff.

Not explicitly required by Tennessee law or child care regulations. However, it is strongly recommended for protection against claims of negligence, supervision failure, or emotional harm. Not a legal mandate but considered best practice.

Not mandated by Tennessee for child care providers unless selling goods beyond normal scope. General liability insurance typically covers incidental product use. Only becomes a concern if business sells tangible goods regularly.

Only applicable if the child care facility obtains a liquor license (extremely rare and likely prohibited by zoning or child care rules). Not relevant for standard child care operations. Prohibited under Tennessee child care licensing if minors are present.

Required for all LLCs, especially those with employees or operating as a partnership or corporation for tax purposes. Even single-member LLCs may need an EIN if they have employees or file certain tax returns. Child care businesses typically require an EIN due to employee hiring.

LLCs are pass-through entities by default. Single-member LLCs report income on Schedule C of Form 1040; multi-member LLCs file Form 1065 (partnership return). Self-employment tax (15.3% for Social Security and Medicare) applies to net earnings over $400. Child care businesses must comply with these rules based on structure.

OSHA does not have child care-specific standards but enforces general duty clause (Section 5(a)(1) of OSH Act). Employers must provide a workplace free from recognized hazards. Applies only if the LLC has employees. Includes requirements for injury reporting (OSHA Form 300 if 10+ employees), hazard communication, and emergency preparedness.

Child care providers must comply with Title III of the ADA, which prohibits discrimination against children or parents with disabilities. Includes physical accessibility (if facility was built or altered after 1991), policy modifications, and communication access. Applies regardless of number of employees or funding source.

Requires child care facilities in pre-1981 buildings to inspect for asbestos-containing materials, develop a management plan, and perform periodic re-inspections. Applies to public and private non-profit child care facilities; for-profit LLCs may be included under EPA interpretation. EPA enforces AHERA under TSCA Section 702.

All individuals over 18 must undergo fingerprint-based background checks through the Tennessee Bureau of Investigation (TBI) and FBI. Results must be submitted to TDHS.

All child care facilities must pass an annual fire safety inspection. A Certificate of Inspection must be posted on-site. Inspections are conducted by the State Fire Marshal or local fire department.

Child care facilities are subject to routine health inspections by the Tennessee Department of Health to ensure compliance with sanitation, food handling, water quality, and infectious disease control standards.

Child care facilities must comply with the Tennessee State Building Code. Inspections may be conducted by local authorities or TDCI. Frequency depends on local requirements.

Employers must withhold and remit state income tax from employee wages. New employers typically start with monthly filings; high-volume filers may be required to file quarterly.

Child care services are generally exempt from sales tax, but if taxable items (e.g., prepared food for sale) are sold, registration and reporting are required.

Employers must file Form 941 (quarterly) or Form 944 (annual) to report federal income tax, Social Security, and Medicare withholding. Form 940 (FUTA) is due annually by January 31.

FUTA tax is due annually. Employers may receive a credit of up to 5.4% if they pay state unemployment taxes on time.

Employers must file quarterly unemployment tax reports (Form UI-2) and pay taxes on the first $7,000 of wages per employee annually.

Employers must keep payroll records, Forms W-2, W-4, and tax returns for at least four years. Child care providers should also retain enrollment, health, and incident records for five years per TDHS guidelines.

The current child care license and Star-Rated License (if applicable) must be prominently displayed at the entrance or main reception area.

Required posters include the Fair Labor Standards Act (FLSA), Employee Rights (FMLA), Equal Employment Opportunity (EEO), and OSHA Workplace Safety. Posters must be visible to employees.

Per Minimum Licensing Standards (Rule 1240-07-.08), directors must complete 10 hours of approved training annually, including at least 3 hours in administration. Staff must complete 6 hours, including health and safety topics.

Facilities in the Tennessee Invests program must meet higher quality standards. Renewal includes assessment of staff education, curriculum, and family engagement.