How Much Does It Cost to Start a Preschool in Colorado?

Compare in another state:

Starting a Preschool in Colorado typically costs between $53,000 and $424,000, with a median estimate of $159,000. Colorado’s cost of living runs 6% above the national average, which increases commercial rent and labor costs. LLC formation in Colorado costs $50 to file. Most preschool businesses take 6-12 months to launch.

Last updated: March 2026

Preschool startup costs illustration — typical equipment and setup

How Much Does It Cost to Start a Preschool in Colorado?

Low

$53,000

Medium

$159,000

High

$424,000

National average: $50,000 – $400,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Preschool in Colorado

Budget:

Classroom Space Lease & Build-Out

$63,600

Curriculum & Educational Materials

$10,600

Classroom Furniture & Equipment

$15,900

Licensing & Accreditation

$5,300

Staff Hiring & Training

$15,900

Insurance

$7,420

Marketing & Enrollment Campaign

$4,240

Working Capital Reserve

$31,800

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$154,760

Monthly Costs

First Year Total

$154,760

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Classroom Space Lease & Build-Out	$15,900	$63,600	$212,000	Preschools often share space with churches or community centers, reducing build-out costs significantly.
Curriculum & Educational Materials	$3,180	$10,600	$31,800	HighScope, Creative Curriculum, and Reggio Emilia materials run $2,000-$5,000 per classroom setup.
Classroom Furniture & Equipment	$5,300	$15,900	$42,400	Budget $3,000-$8,000 per classroom for complete furniture sets. Invest in quality — preschool furniture lasts 15-20 years.
Licensing & Accreditation	$1,060	$5,300	$15,900	NAEYC accreditation ($2,500-$5,000 to pursue) significantly increases enrollment and allows premium pricing.
Staff Hiring & Training	$5,300	$15,900	$42,400	Most states require lead preschool teachers to have at least an associate's degree in early childhood education.
Insurance	$2,120	$7,420	$21,200	Preschools require the same specialized insurance as daycare centers including abuse/neglect liability coverage.
Marketing & Enrollment Campaign	$1,060	$4,240	$12,720	Open house tours are the most effective preschool enrollment strategy. Hold 3-5 open houses before opening.
Working Capital Reserve	$10,600	$31,800	$84,800	Preschools fill enrollment in waves — most families enroll in September for the academic year.
Total Startup Cost	$44,520	$154,760	$463,220	Required costs only

Licenses & Permits in Colorado

General Business License

Colorado does not have a statewide general business license requirement. Businesses must register their entity with the Colorado Secretary of State and obtain a sales tax license from the Colorado Department of Revenue if selling taxable goods or services. Many municipalities require a local business license — Denver, Aurora, Colorado Springs, and Boulder all have their own business licensing programs with fees ranging from $25 to $500 annually.

Industry-Specific Licenses

Retail Food Establishment License — Colorado Department of Public Health and Environment or County Health
Cost: $100-$800 • Renewal: Annual
Contractor License — Local jurisdiction (Denver Building and Fire Code Services, etc.)
Cost: $150-$600 • Renewal: Annual
Retail Marijuana Store License — Colorado Marijuana Enforcement Division
Cost: $2,500-$15,000 • Renewal: Annual
Cosmetology Salon License — Colorado Office of Barber and Cosmetology Licensure
Cost: $75-$250 • Renewal: Biennial
Real Estate Broker License — Colorado Division of Real Estate
Cost: $200-$500 • Renewal: Every 3 years
Child Care Center License — Colorado Department of Early Childhood
Cost: $100-$500 • Renewal: Annual
Retail Liquor Store License — Colorado Liquor Enforcement Division
Cost: $500-$1,500 • Renewal: Annual
Outfitter and Guide License — Colorado Parks and Wildlife
Cost: $100-$500 • Renewal: Annual

Home-Based Business Rules

Colorado municipalities regulate home-based businesses through local zoning ordinances. Denver allows home occupations with restrictions on customer visits (typically 1 person at a time), no exterior display, and no storage of commercial vehicles. Colorado State law preempts local regulations that would completely prohibit home-based businesses. The Colorado Cottage Food Act specifically authorizes home-based food production with certain limitations.

Resources

Monthly Operating Costs

After launch, plan for these ongoing monthly expenses for your Preschool:

Low

$7,000/mo

Medium

$20,000/mo

High

$50,000/mo

Revenue Potential

Annual Revenue Range

$100,000 – $800,000 (annual)

Profit Margins

10-20%

Break-Even Timeline

18-30 months

How Colorado Compares to Neighboring States

Colorado is a higher-cost state for starting a Preschool, with a cost-of-living index of 105.7 (national average is 100). Compared to neighboring Wyoming ($150,000 median startup cost), Colorado has higher costs for a Preschool.

State	Est. Cost	LLC Fee
Colorado (current)	$159,000	$50
Wyoming	$150,000	$100
Nebraska	$136,500	$105
Kansas	$135,000	$160
Oklahoma	$133,500	$100
New Mexico	$142,500	$50
Utah	$159,000	$54

Common Mistakes to Avoid

1
Launching mid-year instead of September — most families commit to preschool before the school year starts
2
Not pursuing NAEYC accreditation — accredited programs charge 20-30% more and have waitlists
3
Underestimating teacher qualifications required — state regulations specify minimum education requirements
4
Not understanding your state's preschool subsidy programs — accepting subsidies increases enrollment significantly
5
Ignoring family communication tools — parents pay premium tuition and expect regular updates on their child

Next Steps to Launch Your Preschool

1
Obtain a Colorado preschool or early childhood education facility license from the Colorado Department of Education or DCFS
2
Register your Preschool as an LLC with the Colorado Secretary of State ($50 filing fee)
3
Ensure all lead teachers hold a Colorado-recognized Early Childhood Education (ECE) credential or degree
4
Pass the Colorado fire marshal and health department inspections for your preschool facility
5
Complete criminal background checks for all staff and volunteers per Colorado childcare licensing requirements
6
Get childcare-specific liability insurance and commercial property coverage ($5,000–$12,000/year)
7
Develop your curriculum framework — choose from play-based, Montessori, Reggio Emilia, or structured academic approach
8
Enroll in the USDA CACFP (Child and Adult Care Food Program) to receive reimbursement for qualifying meals

Frequently Asked Questions

Starting a preschool costs $50,000 to $400,000. A small preschool using shared church or community center space can launch for $50,000-$100,000. A dedicated preschool facility for 40-60 students with its own space and outdoor area typically costs $150,000-$350,000.

Most states require lead preschool teachers to have an associate's or bachelor's degree in early childhood education, plus a state teaching certificate or Child Development Associate (CDA) credential. Requirements vary by state. Aides typically need 18+ hours of early childhood education coursework.

Private preschool tuition ranges from $500-$2,500/month depending on location, hours, and program quality. NAEYC-accredited programs in affluent areas charge $1,500-$2,500/month. Part-day programs (3 hours, 3 days/week) charge $300-$800/month. Full-day programs command premium rates.

Franchises like The Learning Experience, Goddard School, and Kiddie Academy provide curriculum, training, and brand recognition at the cost of $150,000-$500,000 franchise fees and ongoing royalties (7-10% of revenue). Independent programs offer curriculum flexibility and no royalties, but require more development time.

A 2-classroom preschool with 20 students per class at $1,000/month tuition grosses $480,000/year. After teacher salaries (3-4 teachers at $35,000-$50,000 each), rent, and overhead, net margins of 10-20% require 85%+ enrollment. The key is maintaining a waitlist to fill departing students immediately.

Related Businesses in Colorado

Daycare Center

Childcare & Education

$60,000 – $500,000

View in Colorado →

Tutoring Business

Childcare & Education

$2,000 – $100,000

View in Colorado →

Dance Studio

Childcare & Education

$20,000 – $250,000

View in Colorado →

Music School

Childcare & Education

$10,000 – $150,000

View in Colorado →

Martial Arts Studio

Childcare & Education

$20,000 – $200,000

View in Colorado →

Start a Preschool in Other States

See the national overview for Preschool or browse all businesses you can start in Colorado.