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 $49,200 and $410,000, with a median estimate of $147,600. North Dakota’s cost of living is 9% 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: May 2026

Daycare Center startup costs illustration — typical equipment and setup

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

Low

$49,200

Medium

$147,600

High

$410,000

National average: $60,000 – $500,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Daycare Center in North Dakota

Budget:

Facility Lease & Build-Out

$65,600

Playground Equipment

$16,400

Indoor Furniture & Learning Materials

$24,600

State Licensing & Inspections

$4,100

Staff Hiring & Training

$16,400

Insurance

$8,200

Childcare Management Software

$1,640

Marketing & Community Outreach

$4,100

Working Capital Reserve

$32,800

Options

Include 3 months working capital (+$61,500)

Employees:Just Me1–34–10

Startup Costs

$173,840

Monthly Costs

$20,500

First Year Total

$419,840

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Facility Lease & Build-Out	$16,400	$65,600	$205,000	Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor).
Playground Equipment	$4,100	$16,400	$49,200	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	$8,200	$24,600	$65,600	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	$820	$4,100	$12,300	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	$4,100	$16,400	$49,200	Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education.
Insurance	$2,460	$8,200	$24,600	Abuse/neglect liability insurance is mandatory for childcare centers and is the most critical add-on; premiums scale with enrollment capacity.
Childcare Management Software	$410	$1,640	$4,920	Brightwheel, Procare, and HiMama are popular daycare management platforms billed on a monthly per-child subscription model.
Marketing & Community Outreach	$820	$4,100	$12,300	Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable.
Working Capital Reserve	$12,300	$32,800	$98,400	Daycares typically fill to a majority of capacity in year 1 and reach near-full occupancy by year 3.
Total Startup Cost	$49,610	$173,840	$521,520	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: Varies — contact agency • Renewal: Annual
General Contractor License — North Dakota Secretary of State (registration only, no state license required for most)
Cost: Varies — contact agency • Renewal: Annual
Cosmetology Salon License — North Dakota State Board of Cosmetology
Cost: Varies — contact agency • Renewal: Annual
Real Estate Broker License — North Dakota Real Estate Commission
Cost: Varies — contact agency • Renewal: Annual
Child Care Center License — North Dakota Department of Health and Human Services — Early Childhood Services
Cost: Varies — contact agency • Renewal: Annual
Commercial Pesticide Applicator License — North Dakota Department of Agriculture
Cost: Varies — contact agency • Renewal: Annual
Retail Liquor License — North Dakota Office of the Attorney General — Alcoholic Beverage Licensing
Cost: Varies — contact agency • Renewal: Annual
Oil and Gas Operator License — North Dakota Industrial Commission — Oil and Gas Division
Cost: Varies — contact agency • 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 subject to a state-defined annual cap.

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 one of the more affordable states for launching a Daycare Center, with a cost-of-living index of 91.1 (national average is 100). Compared to neighboring Minnesota ($169,200 median startup cost), North Dakota offers lower costs for a Daycare Center.

State	Est. Cost	LLC Fee
North Dakota (current)	$147,600	$135
Minnesota	$169,200	$155
South Dakota	$149,400	$150
Montana	$174,600	$35

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 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; 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 North Dakota.