How Much Does It Cost to Start a Daycare Center in Massachusetts?

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Starting a Daycare Center in Massachusetts typically costs between $92,400 and $770,000, with a median estimate of $277,200. Massachusetts’s cost of living runs 50% above the national average, which increases commercial rent and labor costs. LLC formation in Massachusetts costs $500 to file. Most daycare center businesses take 4-12 months to launch.

Last updated: May 2026

Daycare Center startup costs illustration — typical equipment and setup

How Much Does It Cost to Start a Daycare Center in Massachusetts?

Low

$92,400

Medium

$277,200

High

$770,000

National average: $60,000 – $500,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Daycare Center in Massachusetts

Budget:

Facility Lease & Build-Out

$123,200

Playground Equipment

$30,800

Indoor Furniture & Learning Materials

$46,200

State Licensing & Inspections

$7,700

Staff Hiring & Training

$30,800

Insurance

$11,500

Childcare Management Software

$3,080

Marketing & Community Outreach

$7,700

Working Capital Reserve

$61,600

Options

Include 3 months working capital (+$115,500)

Employees:Just Me1–34–10

Startup Costs

$322,580

Monthly Costs

$38,500

First Year Total

$784,580

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Facility Lease & Build-Out	$30,800	$123,200	$385,000	Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor).
Playground Equipment	$7,700	$30,800	$92,400	CPSC-compliant commercial playground equipment is a meaningful four-to-low-five-figure capital purchase. Engineered wood fiber or rubber surfacing is required.
Indoor Furniture & Learning Materials	$15,400	$46,200	$123,200	Plan a meaningful three-to-low-four-figure budget per classroom for furnishings. Infant rooms require cribs as individual mid-three-figure capital items.
State Licensing & Inspections	$1,540	$7,700	$23,100	Background checks for all staff and household members are a low per-person cost. Licensing fees vary by state and facility capacity.
Staff Hiring & Training	$7,700	$30,800	$92,400	Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education.
Insurance	$3,450	$11,500	$34,500	Abuse/neglect liability insurance is mandatory for childcare centers and is the most critical add-on; premiums scale with enrollment capacity.
Childcare Management Software	$770	$3,080	$9,240	Brightwheel, Procare, and HiMama are popular daycare management platforms billed on a monthly per-child subscription model.
Marketing & Community Outreach	$1,540	$7,700	$23,100	Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable.
Working Capital Reserve	$23,100	$61,600	$184,800	Daycares typically fill to a majority of capacity in year 1 and reach near-full occupancy by year 3.
Total Startup Cost	$92,000	$322,580	$967,740	Required costs only

Licenses & Permits in Massachusetts

General Business License

Massachusetts does not have a statewide general business license, but businesses must register their entity with the Massachusetts Secretary of State (Corporations Division) and register with the Massachusetts Department of Revenue for sales tax and employer tax purposes. Many Massachusetts cities and towns require local business certificates — Boston, Cambridge, Worcester, and other municipalities have their own licensing systems. The state offers a MassTaxConnect portal for tax registration.

Industry-Specific Licenses

Food Establishment Permit — Massachusetts Department of Public Health or Local Board of Health
Cost: Varies — contact agency • Renewal: Annual
Home Improvement Contractor Registration — Massachusetts Office of Consumer Affairs and Business Regulation
Cost: Varies — contact agency • Renewal: Biennial
Cosmetology Shop License — Massachusetts Board of Registration of Cosmetology
Cost: Varies — contact agency • Renewal: Biennial
Real Estate Broker License — Massachusetts Board of Registration of Real Estate Brokers and Salespersons
Cost: Varies — contact agency • Renewal: Biennial
Child Care Program License — Massachusetts Department of Early Education and Care (EEC)
Cost: Varies — contact agency • Renewal: Annual
Common Victualler License and All Alcohol License — Massachusetts Alcoholic Beverages Control Commission or Local License Authority
Cost: Varies — contact agency • Renewal: Annual
Marijuana Retailer License — Massachusetts Cannabis Control Commission
Cost: Varies — contact agency • Renewal: Annual
Transportation Network Company License — Massachusetts Department of Public Utilities
Cost: Varies — contact agency • Renewal: Annual

Home-Based Business Rules

Massachusetts cities and towns regulate home-based businesses through local zoning bylaws. Boston allows home occupations with restrictions on signage, customer visits, employees, and the proportion of home space used for business. Many Massachusetts communities restrict the types of businesses allowed as home occupations. Massachusetts's Chapter 40A amendments have expanded housing-based business opportunities, but commercial regulations vary widely by municipality.

Resources

Monthly Operating Costs

After launch, plan for these ongoing monthly expenses for your Daycare Center:

Low

$8,000/mo

Medium

$25,000/mo

High

$70,000/mo

Revenue Potential

Annual Revenue Range

$150,000 – $1,000,000 (annual)

Profit Margins

10-20%

Break-Even Timeline

18-36 months

How Massachusetts Compares to Neighboring States

Massachusetts is a higher-cost state for starting a Daycare Center, with a cost-of-living index of 149.5 (national average is 100). Compared to neighboring New York ($250,200 median startup cost), Massachusetts has higher costs for a Daycare Center.

State	Est. Cost	LLC Fee
Massachusetts (current)	$277,200	$500
New York	$250,200	$200
Vermont	$196,200	$125
New Hampshire	$210,600	$102
Rhode Island	$201,600	$150
Connecticut	$214,200	$120

Common Mistakes to Avoid

1
Underestimating licensing timeline — state childcare licensing takes 3-9 months in most states
2
Not budgeting for staff-to-child ratios — state regulations require a low single-digit ratio for infants and toddlers
3
Skipping abuse/neglect liability insurance — it's mandatory and the most critical coverage for daycare centers
4
Opening without a full enrollment waitlist — use the pre-opening period to build a meaningful waitlist of families
5
Not including subsidy billing in operations — accepting Child Care and Development Fund (CCDF) subsidies significantly increases enrollment

Next Steps to Launch Your Daycare Center

1
Obtain a Massachusetts childcare facility license from the Massachusetts Department of Children and Family Services before accepting children
2
Register your Daycare Center as an LLC with the Massachusetts Secretary of State ($500 filing fee)
3
Pass the Massachusetts fire marshal inspection — exits, smoke detectors, extinguishers, and evacuation plans are required
4
Complete criminal background checks on ALL staff per Massachusetts childcare licensing requirements
5
Meet Massachusetts staff-to-child ratio requirements: typically 1:4 for infants, 1:6 for toddlers, 1:10 for preschool-age
6
Get childcare-specific liability insurance and workers compensation coverage; premiums scale with enrollment capacity
7
Install the physical requirements: fenced outdoor play area, age-appropriate bathroom facilities, and kitchen if serving meals
8
Enroll in the USDA Child and Adult Care Food Program (CACFP) to offset meal costs if you serve qualifying children

Frequently Asked Questions

Opening a daycare center spans a wide range driven primarily by capacity. A small home-based daycare for a handful of children can launch in the low five figures. A licensed commercial daycare center for several dozen children requires meaningfully more — well into the six figures. A large full-service childcare center for 100+ children requires materially more capital. Use the calculator on this page to model your specific scenario.

State childcare licensing takes 3-9 months on average. The process involves submitting an application, facility inspections (fire, health, licensing), background checks for all staff, staff training verification, and a licensing visit. Start the licensing process immediately after finding your facility.

Capacity depends on your facility size and state ratio requirements. Typical ratios: infants (1:4), toddlers (1:6), preschoolers (1:10-12). A multi-thousand-square-foot facility can serve dozens of children once ratio requirements are factored in. Most states cap home daycares at a small number of children.

Daycare centers can net low-double-digit percentage margins at full capacity. A multi-dozen-child center charging the local average monthly tuition grosses meaningful annual revenue. After staff labor (a substantial share of revenue), rent, supplies, and insurance, healthy net profit is achievable. The key is maintaining high occupancy consistently.

Requirements vary by state and staff role. Lead teachers typically need a CDA credential, an associate's degree in early childhood education, or a bachelor's degree. Aides may need only adult age and a high school diploma plus CPR certification. All staff must pass a background check.

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Start a Daycare Center in Other States

See the national overview for Daycare Center or browse all businesses you can start in Massachusetts.