Starting a state of Michigan licensed home daycare is an opportunity to build a rewarding business and make a lasting impact on your community. The state provides a clear framework for operating legally and successfully, with distinct paths for smaller family homes and larger group homes. This guide details the official requirements, financial considerations, and growth opportunities for potential providers in Michigan.
In Michigan, providing care for unrelated children in your home is a regulated activity. The Department of Lifelong Education, Advancement, and Potential (MiLEAP) oversees licensing to ensure all programs are safe and compliant. It is illegal to operate without being licensed or registered by the department.
The state offers two primary types of in-home daycare licenses: Family Child Care Homes, for 1-6 unrelated children, and Group Child Care Homes, for 7-12 unrelated children. Both license types require compliance with the Licensing Rules for Family and Group Child Care Homes and the Child Care Organizations Act (1973 PA 116). Upon receipt of your application, the state sends you a rule book and a copy of the act to guide you.
The application process is thorough, involving documentation, background checks, and home inspections to ensure you meet all state standards. Navigating these licensing rules is a key area where Wonderschool provides support and business coaching.
Before applying, you must read the Licensing Rules and the Child Care Organizations Act. The online application must be completed using Internet Explorer and requires a non-refundable fee paid by credit or debit card; Discover and American Express are not accepted.
Applicants for both family and group homes must contact local zoning authorities to see if operating a home daycare is permitted in their neighborhood. This step is required prior to submitting an application.
Group Child Care Homes have an additional requirement under the Zoning Enabling Act (2006 PA 110, MCL 325.32016) to secure a Zoning Approval form (BCAL-3748). This act requires counties and townships to grant approval if specific state requirements are met. Local ordinances cannot be more restrictive than the Child Care Organization Act, except for the specific requirements outlined in subsection (4) of the Zoning Enabling Act.
A significant part of the application involves demonstrating that you and your environment are safe for children. You will need to gather several key documents.
Your home itself must pass several inspections to ensure it is a safe physical space for children.
After your application materials are submitted and approved, the local licensing office will arrange for you to attend a required orientation session. This session provides additional information to help you succeed in your business. Following orientation, a licensing consultant will schedule an on-site inspection of your home to assess compliance with all rules.
During the on-site inspection, the consultant will verify the following:
It is your responsibility to be in full compliance with all rules and laws at the time of this inspection and at all times thereafter.
Choosing between a Family and Group Child Care Home license is a critical first decision that impacts your business's capacity, initial cost, and regulatory requirements. This choice often defines your path to growing your childcare business.
Starting with a Family Home license can be a great entry point, with a clear pathway to upgrade to a Group Home license as your experience and demand grow. The increased capacity of a Group Home allows for higher revenue potential and a larger program.
The financial stability of child care businesses in Michigan is a key topic of discussion in the state government. Proposed investments aim to better align provider reimbursements with the true cost of care. Understanding these proposals can help you project your potential earnings. You can also use our New Provider Calculator to find out how much you can make operating a daycare.
Currently, Michigan’s child care scholarship reimbursement rates fall short of covering the true cost of providing care. Several proposals aim to address this through increased rates, prospective payments, and contracts, all of which would provide greater financial stability for child care businesses.
The Governor, Senate, and House have put forth different proposals that will directly impact provider finances:
Receiving your license is the beginning, not the end, of your relationship with state regulators. Ongoing compliance is required to maintain your legal status to operate.
Your initial license is a 6-month original license. Before it expires, you must submit a renewal application packet and fee. A complete renewal application will trigger another on-site inspection. If you remain in compliance with the rules and the law, you will be issued a regular license that is valid for 2 years.
To maintain your license, you must adhere to several ongoing requirements:
Wonderschool has partnered directly with the State of Michigan to help entrepreneurs launch and grow their child care businesses. Our project is supported by funding from the Michigan Department of Lifelong Education, Advancement and Potential (MiLEAP), ensuring you have access to state-approved resources and support.
We understand that navigating the licensing process and running a business can be challenging. We provide the tools and guidance to make it easier. Through our partnership with MiLEAP, we offer four user-friendly toolkits—Caring for Mi Future, Childcare, Business Plans, and Licensing—to assist you.
Our Wonderschool Academy is a business training program that teaches you the basics of starting and operating a successful program. We also help you create a free, professional website using our website builder, allowing families to find, tour, and enroll in your program in minutes. We help our providers with all aspects of running and operating their child care.
Wonderschool provides technical assistance and connects providers with resources like government grants to help you build a financially stable business. From understanding the initial application to planning for growth, we are here to support your journey in becoming a state of Michigan licensed home daycare provider.
Find a child care program that meets your needs from thousands of listings using our Child Care Finder. If you're a provider, create a listing to get discovered by families near you!