Home » The Playbook » State Guide » How to start a business in Texas » Texas – Childcare & Education
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.
Enrichment center, tutoring
NAICS 611691Family home daycare, under 12 children
NAICS 624410Commercial childcare facility
NAICS 624410Karate, judo, MMA studio
NAICS 611620Music lessons, singing camp
NAICS 611610Day camp, sports camp
NAICS 713990Every 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.
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.
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 |
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 |
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 |
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 |
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 |
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) |
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.
This is where you go for exact, current fees and to file applications.
Child-care home & center permits, school-age and after-school program licenses, background checks, single-skill exemptions
hhs.texas.gov →Youth camp licensing (day and resident camps)
dshs.texas.gov →Entity formation (LLC, corporation, LP) and assumed names
sos.state.tx.us →Sales & use tax permit, franchise tax
comptroller.texas.gov →Unemployment insurance employer registration
twc.texas.gov →Federal Employer Identification Number (EIN)
irs.gov →Beneficial Ownership Information (BOI) reporting
fincen.gov →New hire reporting
newhire-reporting.com →Austin certificate of occupancy, building, sign, and childcare zoning permits
austintexas.gov →Austin operational fire inspections and permits
austintexas.gov/department/fire →Dallas certificate of occupancy, building, sign, and childcare zoning permits
dallascityhall.com →San Antonio childcare zoning approval and local permits
sa.gov →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.
Built for 40+ Business Types – Succeed with an Incredible Plan.