How much does it cost to open a daycare in Alabama?

$8,205 to $8,250 in state fees the agencies state, across 3 of the 8 licenses, permits and registrations; 2 are free; 3 are set by the city, the county or a provider. Rent, build-out and equipment come on top.

What the state publishes for a daycare in Alabama

Drafted from the agencies’ own pages; some rows still wait to be confirmed. Open the official page before you pay anything.

Stated state fees
$8,205 to $8,250initial fees across 3 of 8 items
Free items
2no fee as the agency publishes it
Set elsewhere
3by the city, the county or a provider
Items in all
8in the order to get them

Initial fees as each agency states them, summed; renewals are not included. Where a fee depends on size or sales the range is the lowest to the highest stated. Members see each row’s fee, its renewal and the official page.

  1. Set up the business

    ItemAgencyFee
    Certificate of formation (LLC) and the business privilege tax returnAlabama Secretary of StatePremium only
    Trade name registration (DBA)Alabama Secretary of StatePremium only
    Employer Identification Number (EIN)Internal Revenue ServiceFree
  2. Register for tax

    ItemAgencyFee
    Sales tax license and withholding account (My Alabama Taxes)Alabama Department of RevenueFree
    State and county business privilege license, and the city business licenseYour county probate judge or license commissionerPremium only
  3. Approve the space

    ItemAgencyFee
    Zoning approval and certificate of occupancyYour city or county building and zoning departmentsPremium only
  4. Get the permits for your kind of business

    ItemAgencyFee
    Day care center licenseAlabama Department of Human ResourcesPremium only
  5. Before the first hire

    ItemAgencyFee
    Unemployment insurance account, new hire reporting and workers’ compensationAlabama Department of WorkforcePremium only

What comes on top of the fees

The state publishes its fees; the space sets the rest. These work it out from your own numbers.

  • Rent the business can carryMonthly sales, or seats and average check, to the base rent that fits a healthy occupancy share.Rent-to-sales calculator
  • The real cost of a NNN leaseBase rent plus CAM, property taxes and insurance, each month.NNN lease calculator
  • The steps in orderThe same items as a walk-through you tick off, with progress saved to your account.How to open

Fees are shown to members as published. Create an account.

Sources and dates

Secretary of State LLC pages and certificate of formation form (Code of Alabama 10A-1-4.31); Department of Revenue business privilege tax pages and 2026 form PPT instructions; Code of Alabama 8-12-6 through 8-12-10 (trade name registration); Secretary of State trademarks and trade names pages; IRS EIN page; Department of Revenue sales tax license FAQ and annual tax account license renewal notices (October 2025); Department of Revenue Handbook of Privilege and Store Licenses; Code of Alabama 40-12-2 and 40-12-151; Code of Alabama 11-51-90 (municipal business licenses); Municipal zoning and building ordinances; State Fire Marshal (Alabama Department of Insurance) inspection pages; DHR child care licensing overview; Minimum Standards for Day Care Centers and Nighttime Centers; Alabama Administrative Code 660-5-26; day care center application form DHR-CDC-1946; Department of Workforce unemployment compensation employer information; new hire reporting pages (portal replaced December 2025); Code of Alabama 25-5-50 and the Workers’ Compensation Division benefits guide. Fees are as published by each agency on the date checked; cities and counties add their own.

Questions about the cost.