Child Care / Day Care Permits & Licenses in Tacoma, WA

Complete guide to permits and licenses required to start a child care / day care in Tacoma, WA. Fees, renewal cycles, and agency contacts.

Unified Business Identifier (UBI) Account Registration

Washington Department of Revenue
Required
Fee: $19.00-$19.00
Renewal: one time
Type: registration

Applies to ALL Washington businesses. UBI required for tax accounts (sales/use, B&O tax). Automatically generated upon business registration with SOS or DOR.

Business & Occupation (B&O) Tax Registration

Washington State Department of Revenue
Required
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Applies to ALL businesses with nexus in WA. Child care typically "Service & Other Activities" at 1.5% rate.

Washington LLC Registration (Certificate of Formation)

Washington Secretary of State - Corporations and Charities Filing System
Required
Fee: $200.00-$200.00
Renewal: one time
Type: registration

Required for all LLCs. Annual report required separately (see below). Fees current as of 2024.

Washington LLC Annual Report

Washington Secretary of State - Corporations Division
Required
Fee: $60.00-$60.00
Renewal: annual
Type: registration

Applies to all LLCs. Failure to file leads to administrative dissolution.

Child Care License (Family Home, Mini-Center, or Full-Day Center)

Washington State Department of Children, Youth, and Families (DCYF)
Required
Fee: $50.00-$250.00
Renewal: annual
Type: license

Required for all regulated child care serving 1+ unrelated children for >4 hours/day. Exemptions for occasional/own children only. Prerequisites: background checks, facility inspections, training (e.g., CPR/First Aid, TB test). See full requirements at https://www.dcyf.wa.gov/services/earlylearning-childcare/provider/enrollments-licensing/child-care-licensing/apply-license.

Early Start/DEL Provider Enrollment (for state subsidy payments)

Washington State Department of Children, Youth, and Families (DCYF)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Required to receive public funding/subsidies. Includes background checks and compliance with licensing standards. Separate from licensing.

Trade Name (DBA) Registration

Washington Department of Revenue and Secretary of State
May Apply
Fee: $5.00-$5.00
Renewal: one time
Type: registration

Filed with DOR for tax purposes; SOS reserves name during LLC formation but DBA separate if needed. Renews with annual report.

Washington State Business License Registration (includes Unified Business Identifier)

Washington State Department of Revenue
Required
Fee: $19.00-$19.00
Renewal: one time
Type: registration

This registration enrolls the LLC in applicable state tax systems including B&O tax, sales tax (if applicable), and withholding tax. Required for all businesses operating in Washington.

Business and Occupation (B&O) Tax Registration

Washington State Department of Revenue
Required
Renewal: one time
Type: registration

Child care services are classified under "Service and Other Activities" with a B&O tax rate of 1.5% of gross receipts. All Washington businesses with gross income must register, even if no tax is due.

Sales Tax Permit Registration

Washington State Department of Revenue
May Apply
Fee: $19.00-$19.00
Renewal: one time
Type: registration

Child care services are generally exempt from sales tax in Washington. However, if the business sells taxable items (e.g., snacks, supplies, merchandise), sales tax registration is required. Most licensed child care providers do not collect sales tax on care services.

Employer Withholding Tax Registration

Washington State Department of Revenue
May Apply
Renewal: one time
Type: registration

Required for any business that withholds state income tax from employee wages. Washington does not have a state income tax, but employers must still register to report wages and comply with unemployment insurance reporting. This registration is part of the Unified Business Identifier process.

Unemployment Insurance Tax Registration

Washington State Employment Security Department
May Apply
Fee: $68500.00-$68500.00
Renewal: one time
Type: registration

Employers must pay unemployment insurance (UI) tax on wages up to $72,800 per employee (2024 limit). Rate varies by industry and experience rating. Child care providers typically fall under UI tax classification code 8161.

Local City Business License or Privilege Tax

Varies by city (e.g., City of Seattle, City of Tacoma)
May Apply
Fee: $187.00-$187.00
Renewal: one time
Type: registration

Many Washington cities (e.g., Seattle, Spokane, Tacoma) require a local business license and impose a gross receipts tax or privilege tax. Requirements and fees vary significantly by jurisdiction. Check with the city clerk or finance department where the business operates.

Washington State Department of Children, Youth, and Families (DCYF) Early Start License

Washington State Department of Children, Youth, and Families
Required
Fee: $25.00-$250.00
Renewal: one time
Type: license

Required for all licensed child care facilities serving 1+ children not related to provider; supersedes local licensing in most cases per RCW 43.215

City of Seattle Business License

City of Seattle Department of Finance and Administrative Services
May Apply
Fee: $55.00-$55.00
Renewal: one time
Type: license

Specific child care business license endorsement required; SMLC 5.55

Seattle Home Occupation Permit (for home-based day care)

City of Seattle Department of Construction and Inspections
May Apply
Fee: $116.00-$116.00
Renewal: one time
Type: permit

Required for family home child care; zoning must allow (most residential zones OK with limits); SMC 23.44.036

King County Business License

King County - Department of Local Services
May Apply
Fee: $25.00-$25.00
Renewal: annual
Type: license

Required for businesses outside city limits; KCC 6.16

King County Health Department Food Service Permit (if providing meals)

Public Health - Seattle & King County
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: permit

Plan review required for new facilities; King County Board of Health Code 13.06

Product Liability Insurance

None
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

Not mandated by Washington state for child care providers unless operating as a retailer. If selling products, general liability policy typically includes product liability coverage. No specific state mandate for child care businesses.

Liquor Liability Insurance

Washington State Liquor and Cannabis Board (LCB)
May Apply
Renewal: one time
Type: certificate

Only applicable if the child care business serves alcohol (highly unlikely). Not required for standard child care operations. No child care license permits alcohol service during care hours.

Employer Identification Number (EIN)

Internal Revenue Service (IRS)
Required
Renewal: one time
Type: permit

All LLCs that have employees or are required to file any federal tax return must obtain an EIN.

Federal Income Tax Filing (LLC classification)

Internal Revenue Service (IRS)
May Apply
Renewal: annual
Type: filing

LLCs taxed as partnerships file Form 1065; as sole proprietorships file Schedule C with Form 1040; as corporations file Form 1120.

Seattle Fire Department Operating Permit

Seattle Fire Department
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: permit

Required for day care centers; IFC Chapter 11 compliance; annual inspection

Certificate of Occupancy

City of Seattle - Department of Construction and Inspections
May Apply
Renewal: one time
Type: permit

Required for child care centers; verifies zoning, building, fire code compliance; SMC 22.100

Fire Alarm System Permit

Seattle Fire Department
May Apply
Fee: $300.00-$800.00
Renewal: one time
Type: permit

Mandatory for child care centers per IFC 907; monitored systems required

Building Permit for Space Modifications

Varies by city/county (e.g., Seattle SDCI)
May Apply
Fee: $200.00-$2000.00
Renewal: one time
Type: permit

Child care-specific requirements (egress, child-height fixtures); SMC Title 22

Sign Permit

City of Seattle - Department of Construction and Inspections
May Apply
Fee: $10.00-$10.00
Renewal: one time
Type: permit

Freestanding/ wall signs >10sf require permit; SMC 23.55

Spokane Regional Health Food Permit (if providing meals)

Spokane Regional Health District
May Apply
Fee: $300.00-$1200.00
Renewal: one time
Type: permit

SRHD Food Code; plan review for child care facilities

Tacoma Business License

City of Tacoma - Finance Department
May Apply
Fee: $100.00-$100.00
Renewal: annual
Type: license

Child care facilities require specific license type; TMC 6A.30

Workers' Compensation Insurance

Washington State Department of Labor & Industries (L&I)
May Apply
Fee: $8.50-$8.50
Renewal: one time
Type: certificate

Required for all employers in Washington with one or more employees. Sole proprietors without employees are not required to carry coverage but may elect to do so. Child care workers are classified under code 3818 (Day Care Centers) with specific premium rates.

General Liability Insurance

None (not mandated by state law)
May Apply
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

While not mandated by state law universally, DCYF requires proof of general liability insurance as part of the child care licensing process. Minimum of $1 million per occurrence and $3 million aggregate is standard. Required for both center-based and large family home providers.

Surety Bond (Child Care License Bond)

Washington State Department of Children, Youth, and Families (DCYF)
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: certificate

A $10,000 surety bond is required for all child care centers and large family home providers. Exempt: small family home providers (care for up to 8 children including own). Bond ensures compliance with child care licensing regulations.

Commercial Auto Insurance

Washington State Department of Licensing (DOL)
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Required for any vehicle titled or primarily used for business. Personal auto policies typically exclude business use. Applies if transporting children or business materials.

Professional Liability / Errors and Omissions Insurance

Not applicable
Required
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Not legally required by Washington state law or DCYF regulations. However, strongly recommended for protection against claims of negligence, injury, or improper supervision. Not a condition of licensure but considered a best practice.

Federal Payroll (Employment) Taxes

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: permit

Includes Social Security, Medicare, Federal Unemployment Tax (FUTA), and income tax withholding.

OSHA General Industry Safety Standards (Child‑Care Facilities)

Occupational Safety and Health Administration (OSHA)
Required
Renewal: one time
Type: permit

Covers hazards such as chemicals, playground equipment, and emergency preparedness specific to child‑care settings.

OSHA Recordkeeping (OSHA 300 Log)

Occupational Safety and Health Administration (OSHA)
May Apply
Renewal: annual
Type: permit

Employers with ≤10 employees may be exempt unless a specific OSHA standard requires recordkeeping.

Americans with Disabilities Act (ADA) Accessibility

U.S. Department of Justice (DOJ) – Civil Rights Division
May Apply
Renewal: one time
Type: permit

Requires accessible entrances, restrooms, playgrounds, and reasonable accommodations for children with disabilities.

EPA Resource Conservation and Recovery Act (RCRA) – Hazardous Waste Management

Environmental Protection Agency (EPA)
May Apply
Renewal: one time
Type: permit

Typical child‑care centers rarely generate hazardous waste, but cleaning chemicals, paint, or certain art supplies could trigger requirements.

Federal Trade Commission (FTC) – Truthful Advertising & Marketing

Federal Trade Commission (FTC)
May Apply
Renewal: one time
Type: permit

Claims about educational outcomes, safety, or staff qualifications must be substantiated.

FTC – Children’s Online Privacy Protection Act (COPPA) Compliance

Federal Trade Commission (FTC)
May Apply
Renewal: one time
Type: permit

If the daycare maintains an online enrollment portal or parent communication app, COPPA may apply.

Department of Labor – Fair Labor Standards Act (FLSA) Wage & Hour Requirements

U.S. Department of Labor (DOL) – Wage and Hour Division
May Apply
Renewal: one time
Type: permit

Child‑care staff are generally non‑exempt and entitled to overtime after 40 hours/week.

Department of Labor – I‑9 Employment Eligibility Verification

U.S. Citizenship and Immigration Services (USCIS) under DOL
May Apply
Renewal: one time
Type: permit

Even for a small daycare, I‑9 compliance is mandatory.

Department of Labor – Family and Medical Leave Act (FMLA) Eligibility

U.S. Department of Labor (DOL) – FMLA
May Apply
Renewal: one time
Type: permit

Most small day‑care LLCs will fall below the employee threshold, making FMLA not applicable.

Federal Reporting – Child Care Provider Annual Report (if receiving federal funds)

Administration for Children and Families (ACF) – Office of Child Care (OCC)
May Apply
Renewal: annual
Type: filing

The report includes enrollment, staffing, and financial data required for continued funding eligibility.

Federal Licensing – No Specific Federal License Required for Day‑Care

None (Federal level)
Required
Renewal: one time
Type: license

Child‑care licensing is administered by the State of Washington (Department of Children, Youth, and Families). No separate federal license is required.

Step-by-Step Compliance Guide

  1. First, obtain a Federal Employer Identification Number (EIN) from the IRS, which is free and doesn’t require renewal.
  2. Next, ensure your advertising and consumer protection practices comply with the Federal Trade Commission (FTC), with fees varying and a one-time requirement.
  3. You must also adhere to the Americans with Disabilities Act (ADA) standards, potentially incurring costs between $1000.00 and $10000.00 for initial compliance.
  4. File your Federal Income Tax Return with the IRS, understanding that fees vary and filing is required annually.
  5. Maintain Professional Liability/Errors & Omissions Insurance, with costs ranging from $500.00 to $2000.00 as a one-time requirement.
  6. Comply with the Consumer Product Safety Commission (CPSC) regulations regarding children’s products, which has a one-time requirement and varying fees.
  7. Address Federal Tax Filing Obligations for LLCs, noting that fees vary and are required for ongoing operation.
  8. Ensure compliance with the Americans with Disabilities Act (ADA) Title III, with fees varying and a one-time requirement.

Common Mistakes to Avoid

  • Assuming state-level permits automatically cover federal requirements is a common error.
  • Failing to obtain an EIN when employing others can lead to penalties.
  • Ignoring FTC advertising guidelines can result in legal action and fines.
  • Overlooking ADA compliance can lead to lawsuits and accessibility issues.
  • Neglecting to file federal income taxes accurately and on time can result in significant penalties.

Frequently Asked Questions

Are there specific federal licenses required for operating a child care in Tacoma, WA?

No, there are no industry-specific federal licenses required for child care operations; however, you must still comply with other federal regulations.

What are the potential costs associated with ADA compliance?

ADA compliance costs can vary significantly, potentially ranging from $1000.00 to $10000.00 depending on the necessary modifications to your facility.

How often do I need to renew my FTC compliance?

FTC compliance regarding advertising and consumer protection is a one-time requirement, but you must continually adhere to their guidelines.

What is the cost of obtaining an EIN from the IRS?

Obtaining an Employer Identification Number (EIN) from the IRS is free of charge and does not require any renewal fees.

What is the Consumer Product Safety Improvement Act (CPSIA)?

The CPSIA establishes safety standards for children’s products, and compliance is required with no associated fee; it ensures products meet specific lead and phthalate limits.

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