Michigan Licensed In-Home Daycare Guide

Operating a licensed in-home daycare in Michigan is a rewarding path for those passionate about early childhood development. It allows you to build a business from your home while providing a vital service to your community. This guide will walk you through the state's requirements to ensure you start and operate your program legally and successfully.

The Legal Requirement for Licensing

In the State of Michigan, it is illegal to care for unrelated children in your home without being licensed or registered by the Department of Lifelong Education, Advancement, and Potential. All Family and Group Child Care Home licensees are required to be in full compliance with the state’s rules and regulations at all times. This framework ensures a safe and enriching environment for every child in your care.

Getting Started: Your Pre-Application Checklist

Before you begin the formal application, there are several preliminary steps you must take. These steps lay the groundwork for a smooth licensing process.

Step 1: Understand the Rules

You must read the Licensing Rules for Family and Group Child Care Homes and the Child Care Organizations Act (1973 PA 116). Familiarity with these documents is mandatory prior to submitting your online application. Understanding these rules is the first step in running a compliant business, and we provide business coaching to help you navigate these requirements.

Step 2: Check Local Zoning

If you plan to open a group child care home, you must contact your local zoning authorities. This is to confirm that operating a group home is permissible in your neighborhood. This step must be completed before you submit an application.

The Online Application Process

Michigan requires all applications for family and group child care homes to be completed online. The process is specific and requires careful attention to detail.

Technical and Payment Requirements

To complete the online application, you must use the Internet Explorer web browser. You will also need a credit or debit card to pay the non-refundable application fee online. Please note that Discover and American Express cards are not accepted for this payment.

Application Fees

The non-refundable application fee depends on the type of in-home daycare you plan to open:

• Family Home: $50.00
• Group Home: $100.00

Required Documentation, Clearances, and Training

To ensure the safety and well-being of children, Michigan requires comprehensive background checks, health clearances, and specific training for all applicants and assistant caregivers. Gathering this documentation is a critical part of your application packet.

Background Checks and Fingerprinting

The applicant and any assistant caregivers are required to undergo a comprehensive background check and fingerprinting process. This is a mandatory step to screen all individuals who will be responsible for the care of children.

Medical Clearances and Health Screenings

You and your assistant caregivers must provide proof of good health. This involves several key documents:

• A Medical Clearance Request (BCAL-3704-CC) for the applicant, signed by a physician or physician's designee. The applicant must complete the Patient Information section of the form before submitting it to their physician.
• A Medical Clearance Request (BCAL-3704-CC) for each assistant caregiver, also signed by their physician or a designee.
• Documentation of tuberculosis (TB) test results is required for all persons living in the home who are 14 years of age and older, as well as for all assistant caregivers.

Mandatory Training and Certifications

Applicants and assistant caregivers must be prepared to handle emergencies and provide a safe environment. This requires valid, documented training in several areas:

• Infant/child/adult CPR, first aid, and blood-borne pathogen training. The training must be conducted by a person certified as a trainer from an organization approved by the licensing department.
• "Infant Safe Sleep Training for Child Care Providers." Documentation of completion of this online training course is required.

Preparing Your Home for a Safe Operation

Your home itself must meet strict safety standards. The state requires several inspections to ensure your physical space is safe for children before a license can be issued.

Heating and Water System Inspections

You must provide proof of inspection and approval of your heating system and fuel-fired water heater within the last 12 months. Specifics include:

• Fuel-fired furnaces must be inspected by a licensed heating contractor.
• Fuel-fired water heaters must be inspected by a licensed heating contractor or a licensed plumbing contractor.
• Wood stoves or other solid fuel appliances must be inspected by a mechanical inspector for the local jurisdiction or a licensed mechanical inspector.

Environmental Safety Inspections

Your home's environment must be free of unseen hazards. This requires:

• Radon Testing: You need documentation showing that the level of radon gas does not exceed 4 picocuries per liter of air in the lowest level of your home.
• Well and Septic Systems: If your home uses a private well and/or septic system, an environmental health inspection and approval are required.

The On-Site Inspection and Final Licensing Steps

After your application materials are submitted and approved, the final phase of the licensing process begins. This includes an orientation and a final on-site inspection of your home by a licensing consultant.

Orientation and Inspection

First, you are required to attend an orientation session arranged by your local licensing office. After this, a licensing consultant will schedule an inspection of your home to assess your compliance with all licensing rules. As the applicant, you are responsible for being in compliance with all rules at the time of the inspection and at all times thereafter. Navigating the final inspection is a key part of our program for starting your own childcare business.

Items Required During the On-Site Inspection

Your licensing consultant will verify that several key safety and planning items are in place:

• At least one functioning multipurpose fire extinguisher with a rating of at least 2A-10BC, properly mounted on each floor level used by children.
• A working smoke detector on each floor of the home.
• A carbon monoxide detector on each floor that is used by children.
• A posted evacuation and care plan for tornados, fires, and serious accidents or injuries.
• A written discipline policy.

Maintaining Your Michigan In-Home Daycare License

Receiving your license is the beginning, not the end, of your compliance journey. To maintain your license, you must meet ongoing requirements for renewal, training, and reporting.

License Renewal and Annual Training

For license renewal, you must submit a complete renewal application packet, including the fee, and undergo another on-site inspection. Additionally, you must complete ongoing professional development each year:

• Applicant/Licensee: 10 clock hours of training per year.
• Assistant Caregivers: 5 clock hours of training per year.

Reporting Requirements

You must report certain changes to the licensing department within 7 working days. These include:

• Any changes in your household composition.
• When a new or existing household member has any arrests or convictions.
• Involvement of any household member in substantiated child abuse or neglect.
• When any household member has court-supervised parole or probation.
• Any admission to or release from a correctional facility or a hospital for emotional, mental, or substance abuse treatment for any household member.
• If you plan to move, you must contact licensing before the move to apply for a license at the new address.

Financial Considerations for Your Business

Running an in-home daycare is also running a business. Understanding the financial aspects, from tax advantages to managing expenses, is crucial for long-term success. Knowing how much you can make is a great first step.

Tax Advantages

Michigan offers potential tax advantages for licensed providers. According to the state, in some cases, one-time operational grant funds received by licensed child care providers, when used to cover operating expenses, may be exempt from taxation.

Managing Wear-and-Tear on Your Home

Using your home for a business will naturally lead to wear and tear. It is important for any home daycare owner to understand deductions, which include depreciation as an allowance for the wear and tear of property. These deductions can help you save money come tax season.

Wonderschool Can Help You Succeed

Navigating the path to opening and running a licensed in-home daycare in Michigan can feel complex, but you don't have to do it alone. At Wonderschool, we empower childcare providers to start, operate, and grow their businesses effectively. We provide a suite of tools and a supportive community to help you at every stage of your journey.

We help you start your childcare program by providing business coaching and guidance through the licensing process. Once you're up and running, our platform helps you manage your program with ease, offering tools for attendance tracking, online billing, and seamless collaboration between you and the families you serve. We also help you grow your business by featuring your program in our marketplace, giving you a professional website, and connecting you with families in your area.

Our support extends to ongoing professional development, a peer community for sharing insights, and access to partner discounts. We are here to handle the business side of childcare, so you can focus on what you do best: providing exceptional care for children.