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

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Starting a Daycare Center in Utah typically costs between $63,600 and $530,000, with a median estimate of $190,800. Utah’s cost of living runs 6% above the national average, which increases commercial rent and labor costs. LLC formation in Utah costs $54 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 Utah?

Low

$63,600

Medium

$190,800

High

$530,000

National average: $60,000 – $500,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Daycare Center in Utah

Budget:

Facility Lease & Build-Out

$84,800

Playground Equipment

$21,200

Indoor Furniture & Learning Materials

$31,800

State Licensing & Inspections

$5,300

Staff Hiring & Training

$21,200

Insurance

$10,600

Childcare Management Software

$2,120

Marketing & Community Outreach

$5,300

Working Capital Reserve

$42,400

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$224,720

Monthly Costs

First Year Total

$224,720

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Facility Lease & Build-Out	$21,200	$84,800	$265,000	Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor).
Playground Equipment	$5,300	$21,200	$63,600	CPSC-compliant commercial playground equipment costs $8,000-$30,000. Engineered wood fiber or rubber surfacing is required.
Indoor Furniture & Learning Materials	$10,600	$31,800	$84,800	Budget $500-$2,000 per classroom for furnishings. Infant rooms require cribs ($200-$500 each).
State Licensing & Inspections	$1,060	$5,300	$15,900	Background checks for all staff and household members cost $30-$100 each. Licensing fees vary by state and capacity.
Staff Hiring & Training	$5,300	$21,200	$63,600	Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education.
Insurance	$3,180	$10,600	$31,800	Abuse/neglect liability insurance is mandatory for childcare centers. Budget $500-$2,000/year for this specific coverage.
Childcare Management Software	$530	$2,120	$6,360	Brightwheel, Procare, and HiMama are popular daycare management platforms at $1-$3 per child per month.
Marketing & Community Outreach	$1,060	$5,300	$15,900	Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable.
Working Capital Reserve	$15,900	$42,400	$127,200	Daycares typically fill to 60% capacity in year 1, 80% in year 2, and 90%+ in year 3.
Total Startup Cost	$64,130	$224,720	$674,160	Required costs only

Licenses & Permits in Utah

General Business License

Utah does not have a statewide general business license. Businesses must register their entity with the Utah Division of Corporations and Commercial Code and register with the Utah State Tax Commission for sales and use tax purposes. Many Utah cities require local business licenses — Salt Lake City, Provo, Ogden, and other municipalities have their own licensing requirements. Utah's One Stop Business Registration system at business.utah.gov helps streamline the process.

Industry-Specific Licenses

Food Service Sanitation License — Utah Department of Agriculture and Food or Local Health Department
Cost: $50-$400 • Renewal: Annual
General Building Contractor License — Utah Division of Occupational and Professional Licensing — Contractor
Cost: $150-$500 • Renewal: Biennial
Cosmetology/Barber Salon Registration — Utah Division of Occupational and Professional Licensing
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — Utah Division of Real Estate
Cost: $150-$400 • Renewal: Annual
Child Care Facility License — Utah Office of Child Care
Cost: $50-$200 • Renewal: Annual
Outfitter and Guide License — Utah Division of Wildlife Resources
Cost: $100-$500 • Renewal: Annual
Restaurant License — Utah Department of Alcoholic Beverage Services
Cost: $300-$2,500 • Renewal: Annual
Money Services Business License — Utah Department of Financial Institutions
Cost: $500-$5,000 • Renewal: Annual

Home-Based Business Rules

Utah municipalities regulate home-based businesses through local zoning ordinances. Salt Lake City allows home occupations in residential zones with standard restrictions on customer visits, commercial signage, and non-resident employees. Utah's many growing communities have updated their home occupation rules to accommodate remote workers and entrepreneurs. Utah's cottage food law supports home-based food production and direct consumer sales up to $10,000 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 Utah Compares to Neighboring States

Utah is a higher-cost state for starting a Daycare Center, with a cost-of-living index of 106.1 (national average is 100). Compared to neighboring Idaho ($185,400 median startup cost), Utah has higher costs for a Daycare Center.

State	Est. Cost	LLC Fee
Utah (current)	$190,800	$54
Idaho	$185,400	$100
Wyoming	$180,000	$100
Colorado	$190,800	$50
New Mexico	$171,000	$50
Arizona	$185,400	$50
Nevada	$183,600	$425

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 Utah childcare facility license from the Utah Department of Children and Family Services before accepting children
2
Register your Daycare Center as an LLC with the Utah Secretary of State ($54 filing fee)
3
Pass the Utah fire marshal inspection — exits, smoke detectors, extinguishers, and evacuation plans are required
4
Complete criminal background checks on ALL staff per Utah childcare licensing requirements
5
Meet Utah 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 Utah.