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

Compare in another state:

Starting a Daycare Center in Washington typically costs between $70,800 and $590,000, with a median estimate of $212,400. Washington’s cost of living runs 13% above the national average, which increases commercial rent and labor costs. LLC formation in Washington costs $200 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 Washington?

Low

$70,800

Medium

$212,400

High

$590,000

National average: $60,000 – $500,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Daycare Center in Washington

Budget:

Facility Lease & Build-Out

$94,400

Playground Equipment

$23,600

Indoor Furniture & Learning Materials

$35,400

State Licensing & Inspections

$5,900

Staff Hiring & Training

$23,600

Insurance

$11,500

Childcare Management Software

$2,360

Marketing & Community Outreach

$5,900

Working Capital Reserve

$47,200

Options

Include 3 months working capital (+$88,500)

Employees:Just Me1–34–10

Startup Costs

$249,860

Monthly Costs

$29,500

First Year Total

$603,860

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Facility Lease & Build-Out	$23,600	$94,400	$295,000	Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor).
Playground Equipment	$5,900	$23,600	$70,800	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	$11,800	$35,400	$94,400	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	$1,180	$5,900	$17,700	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	$5,900	$23,600	$70,800	Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education.
Insurance	$3,450	$11,500	$34,500	Abuse/neglect liability insurance is mandatory for childcare centers and is the most critical add-on; premiums scale with enrollment capacity.
Childcare Management Software	$590	$2,360	$7,080	Brightwheel, Procare, and HiMama are popular daycare management platforms billed on a monthly per-child subscription model.
Marketing & Community Outreach	$1,180	$5,900	$17,700	Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable.
Working Capital Reserve	$17,700	$47,200	$141,600	Daycares typically fill to a majority of capacity in year 1 and reach near-full occupancy by year 3.
Total Startup Cost	$71,300	$249,860	$749,580	Required costs only

Licenses & Permits in Washington

General Business License

Washington State requires most businesses to obtain a Unified Business Identifier (UBI) through the Business Licensing Service (BLS) of the Department of Revenue. Washington has no state income tax, but does have a Business and Occupation (B&O) tax applied to gross receipts, which is unique among US states. Additionally, businesses must register for the B&O tax and any applicable retail sales tax. Many cities require a separate city business license endorsed onto the state license through a streamlined endorsement system.

Industry-Specific Licenses

Food Service Establishment Permit — Washington State Department of Health or Local Health Department
Cost: Varies — contact agency • Renewal: Annual
General Contractor Registration — Washington State Department of Labor and Industries
Cost: Varies — contact agency • Renewal: Annual
Master Cosmetician Shop License — Washington State Department of Licensing — Cosmetology
Cost: Varies — contact agency • Renewal: Annual
Real Estate Broker License — Washington State Department of Licensing — Real Estate
Cost: Varies — contact agency • Renewal: Biennial
Family Day Care License / Child Care Center License — Washington State Department of Children, Youth, and Families
Cost: Varies — contact agency • Renewal: Annual
Marijuana Retailer License — Washington State Liquor and Cannabis Board
Cost: Varies — contact agency • Renewal: Annual
Spirits/Beer/Wine Restaurant License — Washington State Liquor and Cannabis Board
Cost: Varies — contact agency • Renewal: Annual
Money Transmitter License — Washington State Department of Financial Institutions
Cost: Varies — contact agency • Renewal: Annual

Home-Based Business Rules

Washington municipalities regulate home-based businesses through local ordinances within the GMA planning framework. Seattle allows home occupations in residential zones with restrictions on customer visits, commercial delivery, and non-resident employees. Many Washington communities have updated their home occupation rules to accommodate remote workers and tech entrepreneurs. Washington'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 Washington Compares to Neighboring States

Washington is a higher-cost state for starting a Daycare Center, with a cost-of-living index of 112.9 (national average is 100). Compared to neighboring Idaho ($172,800 median startup cost), Washington has higher costs for a Daycare Center.

State	Est. Cost	LLC Fee
Washington (current)	$212,400	$200
Idaho	$172,800	$100
Oregon	$201,600	$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 Washington childcare facility license from the Washington Department of Children and Family Services before accepting children
2
Register your Daycare Center as an LLC with the Washington Secretary of State ($200 filing fee)
3
Pass the Washington fire marshal inspection — exits, smoke detectors, extinguishers, and evacuation plans are required
4
Complete criminal background checks on ALL staff per Washington childcare licensing requirements
5
Meet Washington 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.

Related Businesses in Washington

Preschool

Childcare & Education

$50,000 – $400,000

View in Washington →

Tutoring Business

Childcare & Education

$2,000 – $100,000

View in Washington →

Dance Studio

Childcare & Education

$20,000 – $250,000

View in Washington →

Martial Arts Studio

Childcare & Education

$20,000 – $200,000

View in Washington →

Music School

Childcare & Education

$10,000 – $150,000

View in Washington →

Start a Daycare Center in Other States

See the national overview for Daycare Center or browse all businesses you can start in Washington.