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

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Starting a Daycare Center in North Dakota typically costs between $59,400 and $495,000, with a median estimate of $178,200. North Dakota’s cost of living is 1% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in North Dakota costs $135 to file. Most daycare center businesses take 4-12 months to launch.

Last updated: March 2026

Daycare Center startup costs illustration — typical equipment and setup

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

Low

$59,400

Medium

$178,200

High

$495,000

National average: $60,000 – $500,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Daycare Center in North Dakota

Budget:

Facility Lease & Build-Out

$79,200

Playground Equipment

$19,800

Indoor Furniture & Learning Materials

$29,700

State Licensing & Inspections

$4,950

Staff Hiring & Training

$19,800

Insurance

$9,900

Childcare Management Software

$1,980

Marketing & Community Outreach

$4,950

Working Capital Reserve

$39,600

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$209,880

Monthly Costs

First Year Total

$209,880

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Facility Lease & Build-Out	$19,800	$79,200	$247,500	Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor).
Playground Equipment	$4,950	$19,800	$59,400	CPSC-compliant commercial playground equipment costs $8,000-$30,000. Engineered wood fiber or rubber surfacing is required.
Indoor Furniture & Learning Materials	$9,900	$29,700	$79,200	Budget $500-$2,000 per classroom for furnishings. Infant rooms require cribs ($200-$500 each).
State Licensing & Inspections	$990	$4,950	$14,850	Background checks for all staff and household members cost $30-$100 each. Licensing fees vary by state and capacity.
Staff Hiring & Training	$4,950	$19,800	$59,400	Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education.
Insurance	$2,970	$9,900	$29,700	Abuse/neglect liability insurance is mandatory for childcare centers. Budget $500-$2,000/year for this specific coverage.
Childcare Management Software	$495	$1,980	$5,940	Brightwheel, Procare, and HiMama are popular daycare management platforms at $1-$3 per child per month.
Marketing & Community Outreach	$990	$4,950	$14,850	Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable.
Working Capital Reserve	$14,850	$39,600	$118,800	Daycares typically fill to 60% capacity in year 1, 80% in year 2, and 90%+ in year 3.
Total Startup Cost	$59,895	$209,880	$629,640	Required costs only

Licenses & Permits in North Dakota

General Business License

North Dakota does not have a statewide general business license. Businesses must register their entity with the North Dakota Secretary of State and register with the North Dakota Office of State Tax Commissioner for sales and use tax purposes. North Dakota has minimal business regulation relative to most states. Some cities, particularly Fargo, Bismarck, and Grand Forks, require local business licenses, but many communities have no local licensing requirements.

Industry-Specific Licenses

Food Establishment License — North Dakota Department of Health and Human Services — Division of Food and Lodging
Cost: $50-$300 • Renewal: Annual
General Contractor License — North Dakota Secretary of State (registration only, no state license required for most)
Cost: $50-$200 • Renewal: Annual
Cosmetology Salon License — North Dakota State Board of Cosmetology
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — North Dakota Real Estate Commission
Cost: $80-$250 • Renewal: Annual
Child Care Center License — North Dakota Department of Health and Human Services — Early Childhood Services
Cost: $50-$150 • Renewal: Annual
Commercial Pesticide Applicator License — North Dakota Department of Agriculture
Cost: $50-$150 • Renewal: Annual
Retail Liquor License — North Dakota Office of the Attorney General — Alcoholic Beverage Licensing
Cost: $200-$1,500 • Renewal: Annual
Oil and Gas Operator License — North Dakota Industrial Commission — Oil and Gas Division
Cost: $500-$2,000 • Renewal: Annual

Home-Based Business Rules

Home-based businesses in North Dakota face minimal regulation in rural and unincorporated areas, which represent most of the state's land area. Fargo, Bismarck, and other cities regulate home occupations through local zoning ordinances with standard restrictions on signage and customer traffic. North Dakota's small-town culture generally supports home-based businesses. The state's cottage food law supports home-based food production and direct consumer sales up to $50,000 annually.

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 North Dakota Compares to Neighboring States

North Dakota is close to the national average for Daycare Center startup costs, with a cost-of-living index of 99.2. Compared to neighboring Minnesota ($176,400 median startup cost), North Dakota has higher costs for a Daycare Center.

State	Est. Cost	LLC Fee
North Dakota (current)	$178,200	$135
Minnesota	$176,400	$155
South Dakota	$174,600	$150
Montana	$190,800	$70

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 1 teacher per 4-6 infants
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 waitlist of 30+ 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 North Dakota childcare facility license from the North Dakota Department of Children and Family Services before accepting children
2
Register your Daycare Center as an LLC with the North Dakota Secretary of State ($135 filing fee)
3
Pass the North Dakota fire marshal inspection — exits, smoke detectors, extinguishers, and evacuation plans are required
4
Complete criminal background checks on ALL staff per North Dakota childcare licensing requirements
5
Meet North Dakota 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 ($5,000–$12,000/year)
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 costs $60,000 to $500,000. A small home-based daycare for 6-8 children can launch for $10,000-$30,000. A licensed commercial daycare center for 30-50 children typically costs $100,000-$250,000. A large full-service childcare center for 100+ children can exceed $500,000.

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 2,500 sq ft facility at 35 sq ft per child can serve 71 children maximum, adjusted for ratio requirements. Most states cap home daycares at 6-8 children.

Daycare centers can net 10-20% profit margins at full capacity. A 50-child center charging $1,200/month average tuition grosses $720,000/year. After staff labor (60-65% of revenue), rent, supplies, and insurance, net profit runs $72,000-$144,000. The key is maintaining 85%+ occupancy consistently.

Requirements vary by state and staff role. Lead teachers typically need a CDA credential ($425 to obtain), an associate's degree in early childhood education, or a bachelor's degree. Aides may need only 18+ years of 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 North Dakota.