Starting a Childcare or Education business in Texas.

Opening a childcare or education business in Texas takes up to three layers of approval: the state baseline every business, a state industry license from HHSC Child Care Regulation or DSHS. And a key fork runs through this whole field: full-time care of young children is heavily licensed, while single-skill programs (tutoring, martial arts, music) are usually exempt. Finally local permits for your address. This guide walks all three, for the six childcare and education business types.

 
Fees and requirements change. Amounts shown are for guidance — always confirm the current fee with the issuing agency before applying.

After-School / Tutoring Program

Enrichment center, tutoring

NAICS 611691

Home-Based Daycare (Registered)

Family home daycare, under 12 children

NAICS 624410

Licensed Daycare Center

Commercial childcare facility

NAICS 624410

Martial Arts

Karate, judo, MMA studio

NAICS 611620

Music Instruction

Music lessons, singing camp

NAICS 611610

Youth Activity / Summer Camp

Day camp, sports camp

NAICS 713990

1. Statewide Requirements — Every Business in Texas

Every Texas business starts here, regardless of type. Form your entity, get your federal EIN, and register for the taxes that apply to you. Most of these have no or minimal fees, of course we highly recommend you confirm the current amount with each agency before filing as believe it or not things change.

 
RequirementRequired?AgencyRenewalFee
LLC Certificate of Formation (Form 205) If forming an LLC Secretary of State None $300
For-Profit Corporation Formation (Form 201) If forming a corporation Secretary of State None $300
Limited Partnership Formation (Form 207) If forming an LP Secretary of State None $750
Assumed Name Certificate / DBA (Form 503) If operating under another name Secretary of State None $25
Federal EIN Employees, partnership/corp, or excise tax IRS None Contact IRS
Beneficial Ownership (BOI) Report Foreign reporting companies only FinCEN As required Contact FinCEN
Sales and Use Tax Permit If selling taxable goods/services Comptroller Perpetual Contact Comptroller
Franchise (Margin) Tax All Texas entities; $0 below $2.65M Comptroller Annual, May 15 Contact Comptroller
Unemployment Insurance Registration If liable (e.g. $1,500 wages/quarter) Workforce Commission None Contact TWC
New Hire Reporting Any W-4 hire, within 20 days Attorney General Ongoing Contact TX OAG

2. Industry licenses & permits

This is where the six business types diverge sharply. Full-time care of young children is licensed by HHSC Child Care Regulation; outdoor youth camps by the Department of State Health Services; and single-skill programs — tutoring, martial arts, music — are generally exempt from state child-care licensing. Nearly every provider who cares for children must also complete background checks and pre-service training.

After-School / Tutoring Program

Whether you need a state license turns on what you offer. A program that supervises school-age children before or after school needs the School-Age and Before/After-School Program License from HHSC; a pure single-subject tutoring or enrichment program is exempt and can optionally file Form 2833 for a written determination. Licensed programs must run background checks on everyone age 14+.

Requirement Required? Agency Renewal Fee
School-Age and Before/After-School Program License If caring for school-age children (K–13) before or after school, on holidays, or in summer for 2+ hrs/day HHSC CCR Annual $35 app + $35 initial + $35 annual
Single-Skill Program Exemption (Form 2833) If offering direct instruction in a single skill — exempts you from licensing HHSC CCR None Free (optional filing)
Background / Fingerprint Criminal History Check If operating as a licensed program (all owners, employees, volunteers, household members 14+) HHSC CCR Every 2 years $2 per submission; $37 fingerprint check per paid employee
What to look for — After-School / Tutoring Program checklist
Form your entity with the Texas Secretary of State ($300 LLC)
Get your federal EIN (contact the IRS)
Decide your model: broad school-age care (needs an HHSC license) vs. single-skill tutoring (exempt)
If licensed: apply for the School-Age / Before-After-School Program License ($35 app + $35 initial)
If single-skill exempt: optionally file Form 2833 for a written determination
Run background checks on all staff and household members age 14+
Pass your Certificate of Occupancy and fire inspection

Home-Based Daycare (Registered)

A family home caring for up to 12 children needs a Registered Child-Care Home Permit from HHSC. Before you open, the primary caregiver and all household members age 14+ must clear background checks, and the caregiver must complete pre-service training, orientation, CPR and first aid.

Requirement Required? Agency Renewal Fee
Registered Child-Care Home Permit Yes HHSC CCR Annual $35 app + $35 initial + $35 annual
Pre-Service Training (Caregiver Orientation) Yes — plus 30 clock hours of annual training HHSC CCR Annual Approximately $74–$85 pre-service bundle + approximately $25–$80 CPR/First Aid
Background / Fingerprint Criminal History Check Yes — primary caregiver, all household members 14+ and assistant caregivers HHSC CCR Every 2 years $2 per submission; $37 fingerprint per paid caregiver
What to look for — Home-Based Daycare checklist
Form your entity and get your EIN
Confirm you will care for no more than 12 children at a time
Complete pre-service caregiver training plus CPR and First Aid
Run background and fingerprint checks on the caregiver and all household members age 14+
Apply for the Registered Child-Care Home Permit ($35 app + $35 initial)
Check zoning — many cities require home-occupation or specific-use approval for home daycare
Pass your Certificate of Occupancy and fire inspection

Licensed Daycare Center

A commercial childcare facility needs a Licensed Child-Care Center Permit from HHSC. The center director must hold a Director's Credential, staff must complete pre-service and annual training, and everyone with regular access to children must clear a background check.

Requirement Required? Agency Renewal Fee
Licensed Child-Care Center Permit Yes HHSC CCR Annual $35 app + $35 initial + annual fee of $35 plus $1 per child of licensed capacity
Director's Credential and Pre-Service Training Yes — for the center director HHSC CCR Annual training No HHSC fee; third-party credential tuition approximately $625, plus training and CPR/First Aid
Background / Fingerprint Criminal History Check Yes — owner, director, paid employees, volunteers and anyone with regular access to children HHSC CCR Every 2 years $2 per submission; $37 fingerprint per paid employee
What to look for — Licensed Daycare Center checklist
Form your entity and get your EIN
Line up a director who holds or will earn the Director's Credential
Complete staff pre-service and annual training plus CPR and First Aid
Run background and fingerprint checks on all staff, volunteers and anyone with access to children
Apply for the Licensed Child-Care Center Permit
Secure childcare zoning approval — often the longest step
Pass your Certificate of Occupancy and fire inspection

Martial Arts

A martial arts school providing karate, judo, MMA or similar instruction is considered a single-skill program and is generally exempt from HHSC Child Care Regulation. There is no state occupational license required to operate a martial arts studio in Texas, but statewide business and local property requirements still apply.

Requirement Required? Agency Renewal Fee
No state-level license required No — single-skill exemption under 26 TAC §745.129(2) HHSC CCR None None — Form 2833 exemption confirmation is optional and free
What to look for — Martial Arts checklist
Form your entity and get your EIN
Note that no state child-care license is generally required under the single-skill exemption
Optionally file Form 2833 to document your exemption
Register for a Sales and Use Tax Permit if selling uniforms or gear
Check local zoning for your studio use
Pass your Certificate of Occupancy and fire inspection

Music Instruction

Music lessons and studios are considered single-skill programs and are generally exempt from HHSC Child Care Regulation. There is no state occupational license for music teachers or studios in Texas. Complete the statewide business baseline and any applicable local storefront permits.

Requirement Required? Agency Renewal Fee
No state-level license required No — single-skill exemption under 26 TAC §745.129(2) HHSC CCR None None — Form 2833 exemption confirmation is optional and free
What to look for — Music Instruction checklist
Form your entity and get your EIN
Note that no state child-care license is generally required under the single-skill exemption
Optionally file Form 2833 to document your exemption
Register for a Sales and Use Tax Permit if selling instruments or materials
Check local zoning for your studio use
Pass your Certificate of Occupancy and fire inspection

Youth Activity / Summer Camp

The correct license depends on the camp's format. An outdoor day camp that meets the statutory youth-camp definition may need a DSHS Youth Camp License. An indoor or shorter school-age camp may instead operate under an HHSC School-Age Program License. A true single-skill camp focused on one sport or subject may qualify for an exemption.

Requirement Required? Agency Renewal Fee
Youth Camp License (Day Camp) If the camp meets the DSHS youth-camp definition: 4+ consecutive days, 4+ hrs/day, during school vacation and mainly outdoors DSHS Annual Tiered by camper volume — initial $950–$4,000; renewal $750–$3,500; plus $20 online fee
School-Age Program License (Summer Camp Operation) If the camp does not meet DSHS youth-camp criteria and provides 2+ hrs/day of care HHSC CCR Annual $35 app + $35 initial + $35 annual
Single-Skill Camp Exemption (Form 2833) If the camp focuses on a single skill, such as basketball, coding or music HHSC CCR None Free (optional filing)
What to look for — Youth Activity / Summer Camp checklist
Form your entity and get your EIN
Determine your camp's format to identify the correct regulator
Outdoor youth day camp: apply for the DSHS Youth Camp License when required
Indoor or shorter school-age camp: determine whether the HHSC School-Age Program License applies
Single-skill camp: optionally file Form 2833 for an exemption determination
Run required background checks on staff who work with children
Pass your Certificate of Occupancy and fire inspection

3. Local Requirements like Cities and Counties

Childcare and education businesses operate from a physical location, so you also need local permits. Childcare in particular draws extra zoning scrutiny in most cities and you must be aware of this. These rules vary widely by city and county; the table shows common permit types. Confirm specifics with your local development services department.

Requirement Required? Applies To
Childcare / Daycare Zoning Approval (Specific/Conditional Use) Most cities — for home-based and center-based daycare Daycare uses; varies by city and district
Certificate of Occupancy (CO) Yes Any storefront or facility before opening
Commercial Building Permit If new construction or structural alterations / build-out Build-out or renovation
Sign Permit If installing exterior signage Storefront signage
Operational Fire Inspection / Permit Yes — childcare occupancies are inspected for fire safety Occupancy and assembly fire safety

Local rules vary widely. Whether a daycare is allowed by-right or needs a Specific/Conditional Use Permit, how much occupancy and fire permits cost, and whether the county reviews permits in unincorporated areas all depend on your exact address. Zoning approval is often the longest step for a childcare center — always check with your city and county before signing a lease.

4. Texas Agency Directory for Childcare and Education Related Businesses

This is where you go for exact, current fees and to file applications.

HHSC Child Care Regulation (CCR)

(800) 862-7302

Child-care home & center permits, school-age and after-school program licenses, background checks, single-skill exemptions

hhs.texas.gov

Texas Department of State Health Services (DSHS)

(512) 834-6688

Youth camp licensing (day and resident camps)

dshs.texas.gov

Texas Secretary of State

(512) 463-5555

Entity formation (LLC, corporation, LP) and assumed names

sos.state.tx.us

Texas Comptroller of Public Accounts

(800) 252-5555

Sales & use tax permit, franchise tax

comptroller.texas.gov

Texas Workforce Commission

(512) 463-2222

Unemployment insurance employer registration

twc.texas.gov

Internal Revenue Service (IRS)

(800) 829-4933

Federal Employer Identification Number (EIN)

irs.gov

Financial Crimes Enforcement Network (FinCEN)

(800) 767-2825

Beneficial Ownership Information (BOI) reporting

fincen.gov

TX Office of the Attorney General – New Hire Reporting

(800) 850-5467

New hire reporting

newhire-reporting.com

City of Austin Development Services Department

(512) 974-4000

Austin certificate of occupancy, building, sign, and childcare zoning permits

austintexas.gov

Austin Fire Department – Fire Marshal's Office

(512) 974-0160

Austin operational fire inspections and permits

austintexas.gov/department/fire

City of Dallas Department of Development Services

(214) 670-4209

Dallas certificate of occupancy, building, sign, and childcare zoning permits

dallascityhall.com

City of San Antonio Development Services Department

(210) 207-8227

San Antonio childcare zoning approval and local permits

sa.gov
how orbisup helps

Know which regulator you answer to....if any.

Childcare and education is one of the trickier fields to navigate because the rules fork so sharply: a daycare is heavily licensed, while the martial arts studio next door needs no state license at all. But a summer camp could answer to HHSC, DSHS, or neither depending on its format. OrbisUp guides you through each step for your specific business type and location: which agency licenses you (if any), whether your address needs childcare zoning approval, what background checks and training your staff need, and the order to do it all in.

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Last verified June 28, 2026 · Source: Orbis regulatory database (2026-Q2-TX) · Informational, not legal advice.