How to Start a Child Care Business in Idaho: State Licensing After HB 243 Ended City Licensing

If you want to open a child care business in Idaho, the first question is no longer which city hall to visit. Under HB 243, signed March 27, 2025, and effective July 1, 2025, cities can no longer license child care. The Idaho Department of Health and Welfare (IDHW) is now the licenser. Your Idaho child care license comes from the state, and the fee depends on how many children you plan to serve. This guide walks through the steps in the order most new operators handle them.

Disclaimer: This article is informational content, not legal or tax advice. Rules, fees, and forms change. The figures here were verified in October 2026, but you should confirm every number with the agency named before you spend money. For a complex setup, such as a multi-site center, a building lease, or hiring staff, talk with a licensed Idaho attorney and a CPA.

What you need before you start

• A decision on how many children you will serve and their ages, because that decides your license tier.
• A business name you have checked against Idaho Secretary of State records.
• An Idaho registered agent with a physical Idaho street address. P.O. boxes are not accepted.
• About $100 to $120 for an LLC Certificate of Organization, plus $20 if you want to reserve a name first.
• Money set aside for the state child care license fee, plus criminal history background check costs billed at actual cost.
• A facility address and a clear idea of whether you will operate from a home or a commercial space, because the zoning and building questions differ.
• A SOSBiz account for the Idaho Secretary of State online filing portal at sosbiz.idaho.gov.

Step 1: Match your plan to the right license tier

Idaho Code 39-1102 sorts child care into three tiers based on how many children you care for at one time:

Facility type	Number of children	Maximum state license fee (Idaho Code 39-1107, as amended in 2025)
Family daycare home	6 or fewer	$100 total
Group daycare facility	7 to 12	$100 total
Daycare center	13 or more	$250 for 13 to 25 children; $325 for more than 25 children

The $100 cap applies to every facility type other than a center. Centers pay more because they serve more children. Criminal history background checks are charged on top of the license fee at actual cost, so ask IDHW for the current amount before you budget.

Ask IDHW how children are counted for your tier, including whether your own children count toward the total. The fee structure does not answer that question, so confirm it before you finalize your capacity and your floor plan.

Some care is exempt from licensing. The exempt categories are occasional care of a neighbor's or relative's child, care for relatives within the second degree, and short-term day camps. If your situation is close to one of these exemptions, get IDHW's answer in writing before you advertise your services.

Step 2: Check your city and county, and do not assume

Boise and Coeur d'Alene are among the cities that can no longer license child care under HB 243. Idaho Falls stopped city child care licensing on April 1, 2025, and Moscow stopped on July 1, 2025. Boise's older city child care fees, a $37 worker fee and a $175 inspection fee, no longer apply. If a city clerk or an online page still asks you to pay them for child care, stop and confirm with IDHW.

City and county rules still matter for other parts of your business. Idaho has no state general business license. Registering your entity is a registration, not a license, and the state says so plainly on Business.Idaho.gov. Counties issue no general business license. Some cities require a general license or permit for every business, while others license only specific activities. we have not confirmed the general license rules for every Idaho city, so do not assume your city has none or that it has one. Check your city on the Business Wizard at https://business.idaho.gov, which generates a checklist of the agencies and permits a specific activity needs, and call your city clerk about signage, zoning, and home occupation rules.

Step 3: Form your entity

Many operators form a limited liability company (LLC). The Certificate of Organization costs $100 when filed online through SOSBiz and $120 on paper. Expedited options are available. An evidence-of-filing surcharge of $40 applies for filing within 8 working hours, and a $100 surcharge applies for same-day service on filings submitted before 1:00 p.m. Mountain time. Standard processing is about 7 to 10 days from the filing date. Check current estimates on the SOSBiz Processed Through Date page before you schedule a lease signing or a licensing appointment.

Your LLC name must contain “limited liability company,” “limited company,” “LLC,” “L.L.C.,” “L.C.,” or “LC.” It must be distinguishable from existing, reserved, and registered names on Secretary of State records. It also may not falsely state or imply government affiliation. This matters for child care. Avoid words like “state-approved,” “licensing,” or any phrase that suggests an agency runs your business.

Every entity must keep a registered agent in Idaho. The agent needs a physical Idaho street address, must be available during normal business hours, and cannot be a P.O. box. You may act as your own registered agent if you have an Idaho address. An assumed business name cannot serve as your registered agent. If you want to hold a name while you prepare paperwork, a name reservation costs $20 and lasts 120 days.

If you prefer a corporation, the Articles of Incorporation carry the same $100 filing fee. Both entity types require an annual report. Choose your entity with a CPA, because the tax treatment differs.

Step 4: Understand the annual report and your tax setup

The annual report is required every year. Your first report is due beginning one year after formation, and it is due before the end of the month in which your Certificate of Organization became effective. The Secretary of State lists the annual report fee as no fee, but a missed report still puts your entity's good standing at risk, so calendar it the day you form.

Idaho has no franchise tax and no LLC-specific annual state tax. A default LLC is a pass-through entity, so members report Idaho income on their personal returns at the flat 5.3% rate. An LLC that files a partnership or S corporation return owes the $10 permanent building fund tax. An LLC taxed as a C corporation pays the 5.3% business income tax plus the $10 permanent building fund tax. Which setup fits you depends on your finances, so have a CPA confirm it.

Step 5: File an assumed business name if you need one

If you will operate under a name other than your LLC's legal name, such as a branded name for your learning program, you need a Certificate of Assumed Business Name. The Idaho Secretary of State files it, not the county. It costs $25 when filed online and $45 on paper, which includes a $20 manual data entry surcharge. The assumed business name stays active until you cancel it, and it does not require renewal. File it at https://sos.idaho.gov/business-forms/.

Step 6: Apply for your Idaho child care license

Contact IDHW and request the application for your tier before you commit to a building. Ask for the current application packet, the fee schedule, and the background check instructions. Confirm whether IDHW wants your entity documents included with the application, and if so, file the LLC first so the legal name on your license matches your state filings.

Submit the application, pay the state fee within the cap for your tier, and arrange the criminal history background checks billed at actual cost. Ask IDHW about the facility requirements, staff training, and any inspections that apply to your tier and location. Those standards come from IDHW's rules, and they are not covered in this guide, so request the current checklist in writing. Ask for IDHW's processing time for the license as well. It is not confirmed.

Step 7: Handle sales tax and state registrations

Idaho has a 6% state sales tax and no local sales tax outside voter-approved resort cities. If any of your services or goods are taxable, you need a sales tax permit through the Idaho State Tax Commission at https://tax.idaho.gov/ibr. Whether child care services are subject to sales tax is a question for the Tax Commission. Do not assume either answer. If you hire employees, ask the Tax Commission and your CPA which withholding and employer registrations apply before your first payroll.

Step 8: Keep your license and entity current

Your work is not finished at approval. File your annual report every year. Re-check your license whenever your enrollment changes, because moving from 6 children to 7 changes your tier, and moving from 12 to 13 changes it again. A capacity change can also change your fee and your inspection requirements. Tell IDHW before you change capacity, not after.

Common mistakes to avoid

• Paying an old city child care fee. Boise's $37 worker fee and $175 inspection fee no longer apply after HB 243.
• Assuming you need or do not need a city license. Idaho has no state general business license, counties issue none, and city rules vary, so check your city.
• Miscounting capacity. A tier change changes your fee, so plan for your maximum enrollment, not your opening enrollment.
• Choosing a name that implies government approval. Words that suggest a state agency or state approval can create a naming problem.
• Using a P.O. box or a DBA as your registered agent. Neither is accepted.
• Forgetting the annual report. It is required every year, starting one year after formation.
• Buying equipment or signing a lease before the IDHW checklist. Facility requirements can change what you need, so get the checklist first.

Cost summary

Item	Amount	Agency
LLC Certificate of Organization	$100 online; $120 on paper	Idaho Secretary of State
LLC evidence of filing within 8 working hours	$40 surcharge	Idaho Secretary of State
LLC same-day service (filed before 1:00 p.m. Mountain time)	$100 surcharge	Idaho Secretary of State
Name reservation (120 days)	$20	Idaho Secretary of State
Certificate of Assumed Business Name	$25 online; $45 on paper	Idaho Secretary of State
Annual report	No fee	Idaho Secretary of State
State child care license, family or group facility	Capped at $100	Idaho Department of Health and Welfare
State child care license, center with 13 to 25 children	Capped at $250	Idaho Department of Health and Welfare
State child care license, center with more than 25 children	Capped at $325	Idaho Department of Health and Welfare
Criminal history background checks	Actual cost	Idaho Department of Health and Welfare

What to expect

Results vary by operator, and no outcome is guaranteed. If you complete the entity filing with standard processing, you may have your LLC approved in about 7 to 10 days, which could leave time to finish the state application while you arrange your facility. The state child care license review may take longer, and IDHW's current timeline is not confirmed, so confirm it before you set an opening date. Plan your opening around the license approval, not around the entity filing.

Once your license is approved, you may be able to enroll children and start operating within the terms of that license. Keep your annual report current, stay within your tier, and recheck the rules whenever your location, capacity, or ownership changes.

Where to get help

The Idaho Small Business Development Center offers free business advising at https://idahosbdc.org/. The U.S. Small Business Administration's Boise district office lists local resources at https://www.sba.gov/district/boise. For the Idaho Tax Commission, use https://tax.idaho.gov/. For registrations, use the Idaho Secretary of State at https://sos.idaho.gov/. For child care licensing, contact the Idaho Department of Health and Welfare directly, and ask for the current application, fee schedule, and facility checklist for your tier.