Child Care / Day Care Permits & Licenses in San Antonio, Texas

Child care classified as Group E occupancy; sprinklers often required.

Required if handling food; separate from state minimum standards.

All LLCs must file annually regardless of tax due; threshold adjusted yearly (2024: $2.47M)

Required to form LLC; online filing via SOSDirect

File in all counties where business operates; state SOS tracks but filing is local

Required for facilities serving 1+ unrelated children; types include Licensed Child-Care Home, Center, etc. See fee schedule: https://www.hhs.texas.gov/sites/default/files/documents/providers/child-care-licensing/cc-licensing-fees.pdf

Requires education/experience (e.g., degree + 6mo exp) or coursework; minimum standards: https://www.hhs.texas.gov/regulations/forms/3000-3999/children/7400-7499

Complements state license; health and safety inspections required. See Travis County Health Services regulations.

Per Sign Code Chapter 6-10; wall signs up to 200 sq ft allowed in commercial zones.

Child care centers allowed in commercial zones; home-based may require home occupation permit.

Required for all commercial uses including day care; verifies zoning and building code compliance.

Plan review required for child care-specific safety features (e.g., child-proofing).

Required for monitored systems; child care facilities recommended due to security needs.

Limited to 25% of home; no external signage per Code Sec. 15.1/4.

Texas is the only state that does not mandate workers' comp for all private employers. Employers may opt out but must file a notice of exemption and post required notices. However, if they opt out, they lose certain legal protections (e.g., 'opt-out' employers cannot claim limitations on employee lawsuits). Most child care centers choose to carry coverage due to high-risk nature of work.

Required for all operators, employees, volunteers with child access; HHSC mandates via https://www.hhs.texas.gov/providers/child-care-facility-licensing/background-checks

Child care services generally exempt, but related sales taxable; apply via TexNet

All Texas LLCs must file an annual franchise tax report, even if no tax is owed (due to no-tax threshold). The filing is required regardless of business activity or revenue. For 2024, businesses with annualized total revenue under $1.39 million owe no tax but must still file.

Texas does not have a state income tax, so no state withholding is required. However, federal withholding applies (see IRS). This registration is only necessary if the business withholds federal income tax on behalf of employees and remits it through Texas (optional convenience method). Most employers handle federal withholding directly with IRS.

All employers in Texas with one or more employees must register with TWC and pay unemployment insurance taxes. This is a state-level payroll tax. New employers are assigned an experience rate; new non-profit employers start at 2.7%.

While not always explicitly stated as 'general liability insurance' in statutes, Texas HHS requires child care providers to have liability insurance covering bodily injury and property damage. Minimum coverage typically expected is $300,000 per occurrence. This is a de facto requirement for licensing. See 26 TAC §744.2011 for documentation requirements.

A surety bond of $10,000 is required for all child care centers and group homes as part of the licensing process under 26 TAC §744.2011. The bond ensures compliance with state child care regulations. The bond must be issued by a company licensed in Texas.

If the child care business owns and operates any motor vehicle, Texas law requires commercial auto liability insurance meeting state minimums: $30,000 bodily injury per person, $60,000 per accident, $25,000 property damage (30/60/25). Personal auto policies do not cover business use.

Not mandated by Texas law or HHS regulations. However, strongly recommended for child care providers to protect against claims of negligence, supervision failure, or injury. Often required by commercial landlords or funding partners.

No Texas state mandate. However, if the child care business sells tangible goods (e.g., retail items, food products), product liability exposure exists. General liability may cover some claims, but specialized coverage is recommended. CPSC enforces federal product safety standards but does not require insurance.

Child care facilities are prohibited from serving alcohol under Texas child care regulations. Therefore, liquor liability insurance is not applicable. This would only be relevant if the business operated in a co-located space serving alcohol, which is highly unlikely and likely in violation of zoning or licensing rules.

While not required for single-member LLCs with no employees, most child care businesses will need an EIN to comply with federal tax reporting and employee withholding. This is especially true for licensed day care centers that hire staff.

By default, a single-member LLC is disregarded for federal income tax (reported on owner’s Schedule C), while multi-member LLCs are taxed as partnerships (Form 1065). If employees are hired, the business must withhold and report federal income tax, Social Security, and Medicare (Form 941 quarterly, Form 940 annually). Child care businesses often have employees and thus must comply with employment tax rules.

Child care providers with employees must comply with OSHA’s General Duty Clause and applicable standards (e.g., bloodborne pathogens, emergency preparedness, hazard communication). Required postings include the OSHA Job Safety and Health: It’s the Law poster. Day care centers must ensure safe environments for both staff and children, including safe handling of cleaning chemicals and emergency procedures.

Child care centers are considered public accommodations under Title III of the ADA. Must ensure physical accessibility (e.g., ramps, door widths, restrooms), program accessibility, and non-discrimination in enrollment. Modifications must be "readily achievable"; policies must allow children with disabilities unless they pose a direct threat.

Required for child care providers performing maintenance or renovations in older buildings. Firms must be EPA-certified, use lead-safe practices, and provide EPA-approved educational materials to parents or guardians. Applies even if contractors are used.

Child care providers must ensure advertisements are truthful and not misleading. If the business operates a website or app that collects personal information (e.g., names, photos) from children under 13, it must comply with the Children’s Online Privacy Protection Act (COPPA). This includes posting a compliant privacy policy, obtaining verifiable parental consent, and securing data.

Child care businesses must comply with the Fair Labor Standards Act (FLSA), including minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours), and recordkeeping. Child care workers are typically non-exempt. Also prohibits employing children under 14 in non-agricultural jobs (relevant if hiring teen aides).

Even if not required, most LLCs obtain an EIN to open a business bank account or hire independent contractors. Single-member LLCs with no employees may use the owner’s SSN, but an EIN is recommended.

Federal requirement to withhold income tax, Social Security, and Medicare from employee wages. Deposit frequency depends on the lookback period and total tax liability.

Applies to employers who paid $1,000 or more in wages to employees in any calendar quarter during the year. Most child care businesses with employees will meet this threshold.

Some Texas cities (e.g., Dallas, Austin, Fort Worth) impose a local business tax or permit fee. For example, Austin requires a City of Austin Business Tax Receipt. Check with local city clerk or tax office. Not all cities impose this tax.

Required for all child-care facilities; separate from state licensing. Capacity-based fees per Austin City Code Chapter 6-3.

FMLA requires covered employers to provide eligible employees up to 12 weeks of unpaid, job-protected leave for specified family and medical reasons. Most small child care centers do not meet the 50-employee threshold, but larger providers or chains may.

All U.S. employers must complete Form I-9 to verify identity and employment authorization for every employee. Must retain for 3 years after hire or 1 year after employment ends, whichever is later. Applies to all child care businesses with employees.

There is no federal license required specifically for operating a child care or day care business. Licensing is handled at the state level (Texas Department of Family and Protective Services). However, federal tax, labor, and safety regulations still apply as outlined.

Even if no franchise tax is owed, the Annual Report must be filed. The report is filed with the Texas Comptroller. Due date is May 15 each year, not based on fiscal year.

License must be renewed every 12 months. Renewal application must be submitted at least 30 days before expiration. Includes background checks and compliance with Minimum Standards.

Includes 6 hours annually on topics such as illness prevention, emergency preparedness, and child abuse recognition. Training must be from DFPS-approved providers.

Inspections conducted by DSHS or local health departments. Focus on food handling, hygiene, sanitation, and illness control. Facilities must maintain inspection reports on-site.

Conducted by State Fire Marshal or local fire authority. Includes review of exits, fire extinguishers, smoke detectors, and evacuation plans.

Due May 15 each year. All Texas LLCs must file the franchise tax return (Form 05-163) even if no tax is due. Threshold for no tax is $2.47 million in annual revenue (2023–2024).

Federal Unemployment Tax Act (FUTA) tax. Due annually. Most child care businesses with employees are subject to this tax.

Reports federal income tax withheld, Social Security, and Medicare taxes. Due one month after end of each quarter.

Self-employment tax and income tax for sole proprietors/partners. LLC taxed as partnership or disregarded entity must make these payments.

Must maintain enrollment records, staff training logs, medication administration logs, incident reports, and attendance. Must be available for inspection at any time.

Required posters include Texas Minimum Wage, EEO, OSHA, and Family and Medical Leave Act. DFPS license must also be visibly posted at entrance.

Must report serious injuries, illnesses, or suspected abuse to DFPS within 48 hours. Written report due within 5 days.

Check with local clerk or economic development office. Some cities require zoning approval for home-based daycares.

Must document each drill including date, time, duration, and staff/child response. Records must be kept for 2 years.