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

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Starting a Preschool in Montana typically costs between $53,000 and $424,000, with a median estimate of $159,000. Montana’s cost of living runs 6% above the national average, which increases commercial rent and labor costs. LLC formation in Montana costs $70 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 Montana?

Low

$53,000

Medium

$159,000

High

$424,000

National average: $50,000 – $400,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Preschool in Montana

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 Montana

General Business License

Montana does not have a statewide general business license. Businesses must register their entity with the Montana Secretary of State and register with the Montana Department of Revenue for withholding taxes. Montana has no sales tax, which simplifies business registration. Some Montana cities and counties require local business licenses. The state's outdoor economy and tourism industry influence many licensing requirements.

Industry-Specific Licenses

Food and Drug Establishment License — Montana Department of Public Health and Human Services — Food and Consumer Safety
Cost: $50-$400 • Renewal: Annual
Contractor Registration — Montana Department of Labor and Industry — Employment Relations Division
Cost: $70-$250 • Renewal: Annual
Cosmetology Salon License — Montana Board of Barbers and Cosmetologists
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — Montana Board of Realty Regulation
Cost: $100-$300 • Renewal: Annual
Outfitter License — Montana Board of Outfitters
Cost: $200-$800 • Renewal: Annual
Child Care Facility License — Montana Department of Public Health and Human Services — Child Care Licensing
Cost: $50-$200 • Renewal: Annual
Beer or Liquor License — Montana Department of Revenue — Liquor Control Division
Cost: $400-$10,000 • Renewal: Annual
Pesticide Dealer License — Montana Department of Agriculture
Cost: $50-$150 • Renewal: Annual

Home-Based Business Rules

Home-based businesses in Montana face minimal regulation in rural and unincorporated areas, which make up most of the state's land area. Bozeman, Missoula, Billings, and Great Falls regulate home occupations through local zoning ordinances with standard restrictions on signage and customer traffic. Montana's cottage food law supports home-based food production. Remote home-based businesses are common in Montana's scattered rural communities.

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 Montana Compares to Neighboring States

Montana is a higher-cost state for starting a Preschool, with a cost-of-living index of 105.6 (national average is 100). Compared to neighboring North Dakota ($148,500 median startup cost), Montana has higher costs for a Preschool.

State	Est. Cost	LLC Fee
Montana (current)	$159,000	$70
North Dakota	$148,500	$135
South Dakota	$145,500	$150
Wyoming	$150,000	$100
Idaho	$154,500	$100

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 Montana preschool or early childhood education facility license from the Montana Department of Education or DCFS
2
Register your Preschool as an LLC with the Montana Secretary of State ($70 filing fee)
3
Ensure all lead teachers hold a Montana-recognized Early Childhood Education (ECE) credential or degree
4
Pass the Montana fire marshal and health department inspections for your preschool facility
5
Complete criminal background checks for all staff and volunteers per Montana 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.

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Start a Preschool in Other States

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