Starting or expanding a child care business in a home

Guide
This is a photo of a black child care professional giving a child a high-five.
Learn more about what is needed to start or expand a child care, day care, preschool, early childhood education, nursery school or related business in a home.
On this page
This page provides information about establishing a child care business in a residence. If you are planning to set up a child care business in a commercial building, including churches or community centers, please visit this web page.

Step 1: Talk to your state Child Care Licensing Specialist

Identify your child care type and learn next steps to start your child care business.  Contact the State of Oregon by email at occ.customerservice@delc.oregon.gov or by phone at 800-556-6616.

Based on a conversation with Licensing Specialist, if your child care business qualifies as a Registered Family Child Care Home or a Certified Family Child Care Home, it may operate in a residence. If the State Licensing Specialist says that it will need a commercial license, please visit the web page for Commercial Certified Child Care Businesses.

Step 2: Research property information

  • You can request copies of historic building permits and land use decisions through a formal public records request.
  • Schedule a free 15-minute appointment with a city planner. Ask a city planner if the space has an approved zoning use classification of Household Living.
  • Please be aware that Residential Certified and Registered Family Child Care businesses are prohibited from having external signs advertising their business, including A-frame signs on the sidewalk.
  • Schedule a free 15-minute appointment with a residential building code reviewer. Ask a residential building code reviewer if the building has an existing child care use and whether will you need a building permit for the child care use.
  • Child care businesses may be located within a residence on any story that has a door to the exterior with an uncovered path to a public sidewalk or street.  Basements must meet specific requirements to avoid the installation of sprinklers.
  • Building Official Determination 22-01 outlines some building code requirements and has a list of conditions that you can discuss with a Life Safety Plan Reviewer.

Step 3: Obtain building and trade permits

Step 4: Obtain a City business license

Find out how to register your business with the City of Portland and learn about business taxes.

Additional resources

  • Contact the Small Business Empowerment Program to learn whether you qualify for permit assistance. This program assists Black, Indigenous, People of Color business owners and business owners with disabilities recognized by the Americans with Disabilities Act who have experienced barriers in the review process.
  • Contact the Inclusive Business Resource Network (IBRN). The program funds 20+ non-profit partners to provide free business advising to Portland small businesses. Many partners support child care businesses (both brick and mortar and in-home). Once clients are enrolled in programming via IBRN, they can access additional professional services at low or no cost via a referral program. This includes legal advising, HR consulting, digital marketing coaching, accounting, and bookkeeping advising.
  • The Portland Small Business Hub offers free one-on-one, culturally specific resource navigation for local small business owners. It is a collaboration between Prosper Portland and local community partners. Its business advisors help businesses connect to resources such as financial and technical assistance, marketing, and legal support.
  • Construction activity can release asbestos, which can be found in various building materials, as well as dust from lead-based paint. Learn more about ways to deal with lead paint and asbestos safely.

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