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

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Starting a Daycare Center in South Carolina typically costs between $57,600 and $480,000, with a median estimate of $172,800. South Carolina’s cost of living is 4% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in South Carolina costs $110 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 South Carolina?

Low

$57,600

Medium

$172,800

High

$480,000

National average: $60,000 – $500,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Daycare Center in South Carolina

Budget:

Facility Lease & Build-Out

$76,800

Playground Equipment

$19,200

Indoor Furniture & Learning Materials

$28,800

State Licensing & Inspections

$4,800

Staff Hiring & Training

$19,200

Insurance

$9,600

Childcare Management Software

$1,920

Marketing & Community Outreach

$4,800

Working Capital Reserve

$38,400

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$203,520

Monthly Costs

First Year Total

$203,520

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Facility Lease & Build-Out	$19,200	$76,800	$240,000	Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor).
Playground Equipment	$4,800	$19,200	$57,600	CPSC-compliant commercial playground equipment costs $8,000-$30,000. Engineered wood fiber or rubber surfacing is required.
Indoor Furniture & Learning Materials	$9,600	$28,800	$76,800	Budget $500-$2,000 per classroom for furnishings. Infant rooms require cribs ($200-$500 each).
State Licensing & Inspections	$960	$4,800	$14,400	Background checks for all staff and household members cost $30-$100 each. Licensing fees vary by state and capacity.
Staff Hiring & Training	$4,800	$19,200	$57,600	Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education.
Insurance	$2,880	$9,600	$28,800	Abuse/neglect liability insurance is mandatory for childcare centers. Budget $500-$2,000/year for this specific coverage.
Childcare Management Software	$480	$1,920	$5,760	Brightwheel, Procare, and HiMama are popular daycare management platforms at $1-$3 per child per month.
Marketing & Community Outreach	$960	$4,800	$14,400	Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable.
Working Capital Reserve	$14,400	$38,400	$115,200	Daycares typically fill to 60% capacity in year 1, 80% in year 2, and 90%+ in year 3.
Total Startup Cost	$58,080	$203,520	$610,560	Required costs only

Licenses & Permits in South Carolina

General Business License

South Carolina requires most businesses to obtain a Business License from the city or county where they operate — there is no statewide general business license. Businesses must register their entity with the South Carolina Secretary of State and register with the South Carolina Department of Revenue for retail license (sales tax) and withholding tax purposes. South Carolina's 271 municipalities each have their own business licensing ordinances under the South Carolina Business License Tax Standardization Act.

Industry-Specific Licenses

Retail Food Establishment Permit — South Carolina Department of Health and Environmental Control — Division of Environmental Health
Cost: $50-$400 • Renewal: Annual
Residential Builder and Home Improvement License — South Carolina Residential Builders Commission
Cost: $100-$400 • Renewal: Annual
Cosmetology Salon License — South Carolina Board of Cosmetology
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — South Carolina Real Estate Commission
Cost: $100-$300 • Renewal: Annual
Child Care Center License — South Carolina Department of Social Services — Division of Child Care Services
Cost: $50-$200 • Renewal: Annual
On-Premises Beer and Wine Permit — South Carolina Department of Revenue — Alcohol Beverage Licensing
Cost: $200-$2,500 • Renewal: Annual
Tour Operator License — South Carolina Department of Parks, Recreation and Tourism
Cost: $100-$300 • Renewal: Annual
Medical Practice License — South Carolina Board of Medical Examiners
Cost: $200-$600 • Renewal: Annual

Home-Based Business Rules

Home-based businesses in South Carolina are regulated by local municipal and county ordinances. Most South Carolina municipalities allow home occupations in residential zones with restrictions on customer traffic, commercial signage, and non-resident employees. South Carolina's many rural communities have minimal restrictions on home-based businesses. The state's cottage food law supports home-based food production and direct consumer sales.

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 South Carolina Compares to Neighboring States

South Carolina is close to the national average for Daycare Center startup costs, with a cost-of-living index of 95.8. Compared to neighboring North Carolina ($172,800 median startup cost), South Carolina has comparable costs for a Daycare Center.

State	Est. Cost	LLC Fee
South Carolina (current)	$172,800	$110
North Carolina	$172,800	$125
Georgia	$169,200	$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 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 South Carolina childcare facility license from the South Carolina Department of Children and Family Services before accepting children
2
Register your Daycare Center as an LLC with the South Carolina Secretary of State ($110 filing fee)
3
Pass the South Carolina fire marshal inspection — exits, smoke detectors, extinguishers, and evacuation plans are required
4
Complete criminal background checks on ALL staff per South Carolina childcare licensing requirements
5
Meet South Carolina 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 South Carolina.