How Much Does It Cost to Start a Daycare Center in Montana?
Starting a Daycare Center in Montana typically costs between $58,200 and $485,000, with a median estimate of $174,600. Montana’s cost of living is 3% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Montana costs $35 to file. Most daycare center businesses take 4-12 months to launch.
Last updated: May 2026
How Much Does It Cost to Start a Daycare Center in Montana?
Low
$58,200
Medium
$174,600
High
$485,000
National average: $60,000 – $500,000
Interactive Startup Cost Calculator
Startup Cost Calculator
Daycare Center in Montana
Options
Startup Costs
$205,640
Monthly Costs
$24,250
First Year Total
$496,640
Full Cost Breakdown
| Cost Category | Low | Medium | High | Notes |
|---|---|---|---|---|
| Facility Lease & Build-Out | $19,400 | $77,600 | $242,500 | Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor). |
| Playground Equipment | $4,850 | $19,400 | $58,200 | 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 | $9,700 | $29,100 | $77,600 | 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 | $970 | $4,850 | $14,550 | 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 | $4,850 | $19,400 | $58,200 | Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education. |
| Insurance | $2,910 | $9,700 | $29,100 | Abuse/neglect liability insurance is mandatory for childcare centers and is the most critical add-on; premiums scale with enrollment capacity. |
| Childcare Management Software | $485 | $1,940 | $5,820 | Brightwheel, Procare, and HiMama are popular daycare management platforms billed on a monthly per-child subscription model. |
| Marketing & Community Outreach | $970 | $4,850 | $14,550 | Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable. |
| Working Capital Reserve | $14,550 | $38,800 | $116,400 | Daycares typically fill to a majority of capacity in year 1 and reach near-full occupancy by year 3. |
| Total Startup Cost | $58,685 | $205,640 | $616,920 | Required costs only |
Licenses & Permits in Montana
Licenses & Permits in Montana
General Business License
Montana does not have a statewide general business license. Businesses must register their entity with the Montana Secretary of State and register with the Montana Department of Revenue for withholding taxes. Montana has no sales tax, which simplifies business registration. Some Montana cities and counties require local business licenses. The state's outdoor economy and tourism industry influence many licensing requirements.
Industry-Specific Licenses
- Food and Drug Establishment License — Montana Department of Public Health and Human Services — Food and Consumer SafetyCost: Varies — contact agency • Renewal: Annual
- Contractor Registration — Montana Department of Labor and Industry — Employment Relations DivisionCost: Varies — contact agency • Renewal: Annual
- Cosmetology Salon License — Montana Board of Barbers and CosmetologistsCost: Varies — contact agency • Renewal: Annual
- Real Estate Broker License — Montana Board of Realty RegulationCost: Varies — contact agency • Renewal: Annual
- Outfitter License — Montana Board of OutfittersCost: Varies — contact agency • Renewal: Annual
- Child Care Facility License — Montana Department of Public Health and Human Services — Child Care LicensingCost: Varies — contact agency • Renewal: Annual
- Beer or Liquor License — Montana Department of Revenue — Liquor Control DivisionCost: Varies — contact agency • Renewal: Annual
- Pesticide Dealer License — Montana Department of AgricultureCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Home-based businesses in Montana face minimal regulation in rural and unincorporated areas, which make up most of the state's land area. Bozeman, Missoula, Billings, and Great Falls regulate home occupations through local zoning ordinances with standard restrictions on signage and customer traffic. Montana's cottage food law supports home-based food production. Remote home-based businesses are common in Montana's scattered rural communities.
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 Montana Compares to Neighboring States
Montana is close to the national average for Daycare Center startup costs, with a cost-of-living index of 96.8. Compared to neighboring North Dakota ($147,600 median startup cost), Montana has higher costs for a Daycare Center.
| State | Est. Cost | LLC Fee |
|---|---|---|
| Montana (current) | $174,600 | $35 |
| North Dakota | $147,600 | $135 |
| South Dakota | $149,400 | $150 |
| Wyoming | $151,200 | $100 |
| Idaho | $172,800 | $100 |
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 Montana childcare facility license from the Montana Department of Children and Family Services before accepting children
- 2
Register your Daycare Center as an LLC with the Montana Secretary of State ($35 filing fee)
- 3
Pass the Montana fire marshal inspection — exits, smoke detectors, extinguishers, and evacuation plans are required
- 4
Complete criminal background checks on ALL staff per Montana childcare licensing requirements
- 5
Meet Montana 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
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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 Montana.