How Much Does It Cost to Start a Daycare Center in Utah?
Starting a Daycare Center in Utah typically costs between $60,000 and $500,000, with a median estimate of $180,000. Utah’s cost of living is 1% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Utah costs $54 to file. Most daycare center businesses take 4-12 months to launch.
Last updated: May 2026
How Much Does It Cost to Start a Daycare Center in Utah?
Low
$60,000
Medium
$180,000
High
$500,000
National average: $60,000 – $500,000
Interactive Startup Cost Calculator
Startup Cost Calculator
Daycare Center in Utah
Options
Startup Costs
$212,000
Monthly Costs
$25,000
First Year Total
$512,000
Full Cost Breakdown
| Cost Category | Low | Medium | High | Notes |
|---|---|---|---|---|
| Facility Lease & Build-Out | $20,000 | $80,000 | $250,000 | Daycare facilities must meet strict state square footage requirements per child (35-50 sq ft indoor + 75 sq ft outdoor). |
| Playground Equipment | $5,000 | $20,000 | $60,000 | CPSC-compliant commercial playground equipment is a meaningful four-to-low-five-figure capital purchase. Engineered wood fiber or rubber surfacing is required. |
| Indoor Furniture & Learning Materials | $10,000 | $30,000 | $80,000 | Plan a meaningful three-to-low-four-figure budget per classroom for furnishings. Infant rooms require cribs as individual mid-three-figure capital items. |
| State Licensing & Inspections | $1,000 | $5,000 | $15,000 | Background checks for all staff and household members are a low per-person cost. Licensing fees vary by state and facility capacity. |
| Staff Hiring & Training | $5,000 | $20,000 | $60,000 | Most states require lead teachers to have CDA (Child Development Associate) credentials or a degree in early childhood education. |
| Insurance | $3,000 | $10,000 | $30,000 | Abuse/neglect liability insurance is mandatory for childcare centers and is the most critical add-on; premiums scale with enrollment capacity. |
| Childcare Management Software | $500 | $2,000 | $6,000 | Brightwheel, Procare, and HiMama are popular daycare management platforms billed on a monthly per-child subscription model. |
| Marketing & Community Outreach | $1,000 | $5,000 | $15,000 | Word of mouth from satisfied parents is the most effective marketing. Pediatrician referrals are also valuable. |
| Working Capital Reserve | $15,000 | $40,000 | $120,000 | Daycares typically fill to a majority of capacity in year 1 and reach near-full occupancy by year 3. |
| Total Startup Cost | $60,500 | $212,000 | $636,000 | Required costs only |
Licenses & Permits in Utah
Licenses & Permits in Utah
General Business License
Utah does not have a statewide general business license. Businesses must register their entity with the Utah Division of Corporations and Commercial Code and register with the Utah State Tax Commission for sales and use tax purposes. Many Utah cities require local business licenses — Salt Lake City, Provo, Ogden, and other municipalities have their own licensing requirements. Utah's One Stop Business Registration system at business.utah.gov helps streamline the process.
Industry-Specific Licenses
- Food Service Sanitation License — Utah Department of Agriculture and Food or Local Health DepartmentCost: Varies — contact agency • Renewal: Annual
- General Building Contractor License — Utah Division of Occupational and Professional Licensing — ContractorCost: Varies — contact agency • Renewal: Biennial
- Cosmetology/Barber Salon Registration — Utah Division of Occupational and Professional LicensingCost: Varies — contact agency • Renewal: Annual
- Real Estate Broker License — Utah Division of Real EstateCost: Varies — contact agency • Renewal: Annual
- Child Care Facility License — Utah Office of Child CareCost: Varies — contact agency • Renewal: Annual
- Outfitter and Guide License — Utah Division of Wildlife ResourcesCost: Varies — contact agency • Renewal: Annual
- Restaurant License — Utah Department of Alcoholic Beverage ServicesCost: Varies — contact agency • Renewal: Annual
- Money Services Business License — Utah Department of Financial InstitutionsCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Utah municipalities regulate home-based businesses through local zoning ordinances. Salt Lake City allows home occupations in residential zones with standard restrictions on customer visits, commercial signage, and non-resident employees. Utah's many growing communities have updated their home occupation rules to accommodate remote workers and entrepreneurs. Utah's cottage food law supports home-based food production and direct consumer sales subject to a state-defined annual cap.
Monthly Operating Costs
After launch, plan for these ongoing monthly expenses for your Daycare Center:
Low
$8,000/mo
Medium
$25,000/mo
High
$70,000/mo
Revenue Potential
Annual Revenue Range
$150,000 – $1,000,000 (annual)
Profit Margins
10-20%
Break-Even Timeline
18-36 months
How Utah Compares to Neighboring States
Utah is close to the national average for Daycare Center startup costs, with a cost-of-living index of 99.5. Compared to neighboring Idaho ($172,800 median startup cost), Utah has higher costs for a Daycare Center.
Common Mistakes to Avoid
- 1
Underestimating licensing timeline — state childcare licensing takes 3-9 months in most states
- 2
Not budgeting for staff-to-child ratios — state regulations require a low single-digit ratio for infants and toddlers
- 3
Skipping abuse/neglect liability insurance — it's mandatory and the most critical coverage for daycare centers
- 4
Opening without a full enrollment waitlist — use the pre-opening period to build a meaningful waitlist of families
- 5
Not including subsidy billing in operations — accepting Child Care and Development Fund (CCDF) subsidies significantly increases enrollment
Next Steps to Launch Your Daycare Center
- 1
Obtain a Utah childcare facility license from the Utah Department of Children and Family Services before accepting children
- 2
Register your Daycare Center as an LLC with the Utah Secretary of State ($54 filing fee)
- 3
Pass the Utah fire marshal inspection — exits, smoke detectors, extinguishers, and evacuation plans are required
- 4
Complete criminal background checks on ALL staff per Utah childcare licensing requirements
- 5
Meet Utah staff-to-child ratio requirements: typically 1:4 for infants, 1:6 for toddlers, 1:10 for preschool-age
- 6
Get childcare-specific liability insurance and workers compensation coverage; premiums scale with enrollment capacity
- 7
Install the physical requirements: fenced outdoor play area, age-appropriate bathroom facilities, and kitchen if serving meals
- 8
Enroll in the USDA Child and Adult Care Food Program (CACFP) to offset meal costs if you serve qualifying children
Frequently Asked Questions
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Start a Daycare Center in Other States
See the national overview for Daycare Center or browse all businesses you can start in Utah.