How to Start a Home Daycare in South Carolina: Family Child Care Home Registration

Starting a home daycare in South Carolina is manageable once you know which rules apply to your setup. The state defines a family child care home by a few specific counts, so the first job is figuring out where your plans fall. From there the path is straightforward: confirm your zoning, decide whether DSS registration is required, handle the local and business paperwork, then prepare your home for inspection. This guide walks through how to start a home daycare in SC step by step, including what to gather, the mistakes that stall most applicants, and what to expect once you are open.

This article is informational content, not legal or tax advice. Rules, fees, and agency procedures change, and your situation may call for different answers. Talk with a qualified attorney about your lease, zoning, and liability, and with a CPA about your business structure and taxes. Confirm every requirement below with the agency that administers it before you spend money or enroll a child.

What You Need Before You Start

Gather the following before you begin the paperwork. Several items feed into more than one step, so keep them in one binder or shared digital folder.

• A government-issued photo ID for each owner or applicant
• A current deed or lease for the home. If you rent, get written permission from your landlord to run child care at the address
• A list of everyone who lives in the home, because DSS background checks may reach household members. Ask DSS which members must be checked
• A simple floor plan showing the rooms children will use, sleeping areas, bathrooms, kitchen, and exits
• Your proposed business name and a decision on structure (sole proprietorship or LLC)
• A written emergency plan and contact sheets for parents, physicians, and emergency services
• Training records and the DSS course schedule, once DSS has confirmed which courses you must take

Step 1: Decide Whether You Need Registration

Under S.C. Code Section 63-13-20, a family child care home is a home that cares for up to 6 children in the operator's residence. The count includes your own children and related children in the home, so the number of unrelated children you can take is often smaller than people expect. If you have one child of your own at home, you can enroll up to 5 other children.

Two more details decide whether the definition applies:

• Regular care. Care is regular when it happens more than 2 days a week and more than 4 hours a day.
• Who you care for. If you care only for related children, or only for the children of one unrelated family, you are not operating a family child care home under this definition, and registration is not required.

If you fall outside those exemptions, you need DSS registration, or you may choose licensing. Registration involves training, background checks, and fire and health inspections, and it renews annually. Enrollment size also matters for growth. A group child care home caring for 7 to 12 children needs a license, and under 2024 Act 216 those licenses run for a 3-year term. Settle your target enrollment before you buy equipment or sign a lease, because the licensing path changes at 7 children.

Step 2: Confirm Zoning

Proof of zoning conformity is required under S.C. Code Section 63-13-90. In practice, your home must be an allowed use in your zoning district, and a home-based child care business typically falls under home occupation rules. Those rules vary by city and county and may limit the number of clients, signage, parking, non-resident employees, and operating hours. Contact your local zoning or planning office, ask in writing whether family child care is permitted at your address, and keep that letter for your DSS file. If your neighborhood has an HOA or deed restrictions, read those documents too, because private rules can prohibit business use even when zoning allows it.

Step 3: Check the Local Business License

South Carolina has no general statewide business license. Most cities levy a local business license tax, and only nine counties do: Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Orangeburg, Richland, and Sumter. Local licenses run on a May 1 to April 30 license year and are due April 30. According to the SC Revenue and Fiscal Affairs Office, renewals are handled at localblrenewal.com. Ask your city or county whether you owe the license, since the answer depends on where you live. DSS registration is a separate requirement, and Secretary of State registration is not a business license.

Step 4: Choose Your Structure and Name

Your structure determines whether you file anything with the state.

• Sole proprietorship. Sole proprietors do not file organizing documents with the Secretary of State. You can operate under your own name, or use a trade name as described below.
• Limited liability company. File Articles of Organization for a Domestic Limited Liability Company under S.C. Code Section 33-44-203. The filing fee is $110. Filing through Business Entities Online returns documents within 24 to 48 business hours. The Secretary of State does not publish a separate expedite fee, so online filing is the fastest route. The name must contain the words limited liability company or limited company, or an abbreviation such as LLC or L.L.C. You must also name a registered agent with a South Carolina street address. A standard LLC does not file an annual report.

If you need time to settle on a name, you can reserve it for 120 days for $25. The reservation cannot be renewed.

A corporation is a heavier option. It requires Articles of Incorporation ($110, signed by a South Carolina attorney) and Form CL-1 with a one-time $25 initial License Fee, due within 60 days of doing business, plus an annual report filed with the corporate tax return. For most home daycares that added complexity is hard to justify, so ask your CPA before you choose it.

If you will operate under a name other than your legal name or your LLC name, you need a trade name, commonly called a DBA. South Carolina does not register DBAs at the state level, and the Secretary of State does not handle them. List your DBA on your local business license application; there is no separate DBA filing or fee. Then list the trade name on your IRS EIN application and your SCDOR Business Tax Application. State guidance is at scbos.sc.gov.

Step 5: Get Your EIN and State Tax Account

Apply for a federal Employer Identification Number with the IRS, and list your trade name on the application if you use one. Then set up your state tax account through the Business Tax Application on MyDORWAY, available from the South Carolina Department of Revenue. If you sell tangible goods, such as retail products sold to families, you also need a Retail License. That license carries a one-time, nonrefundable $50 fee per location. Ask your CPA which filings and deadlines apply to your structure, because a sole proprietor reports business income on a personal return while an LLC or corporation follows different rules.

Step 6: Complete DSS Registration

This is the core licensing step. DSS registration for a family child care home involves training, background checks, and fire and health inspections, and it renews every year. Because DSS sets the specific courses, check procedures, and inspection standards, call your local DSS child care licensing office early and ask for a written checklist. Confirm these points in writing:

• Which training you must complete before opening, and how it is delivered
• Who must pass a background check, and how the process works for household members
• Which inspector covers fire safety and which covers health, and what each one checks
• Any fees, the order of the application steps, and the annual renewal date and process

If you want to consider optional licensing, ask DSS what it involves and how it compares with registration. Do not borrow timelines or costs from another state or from an online forum, because another state's rules or an outdated post can send you in the wrong direction. Keep copies of everything DSS issues with your business records.

Step 7: Prepare Your Home for Inspection

Inspectors look at the spaces children use, so set them up with safety in mind before the visit. Common priorities include:

• Working smoke alarms, plus carbon monoxide detectors if the home has fuel-burning appliances
• A fire extinguisher, an evacuation route posted in each room, and a planned family meeting point
• Outlet covers, anchored furniture, gates or barriers for stairs, and window safety devices where DSS requires them
• Cleaning products, medicines, and sharp objects locked or kept out of reach
• Separate sleep equipment and a first aid kit in an easy to reach location

Treat this list as a starting point. DSS sets the actual standards, and its inspection checklist is what counts. Walk through the home with the eye of a licensing inspector, then ask DSS to review the space before you enroll anyone.

Step 8: Plan Meals and Food Service

If you provide meals or snacks, identify which food rules apply before you purchase equipment or advertise meal service. Retail food permits come from the South Carolina Department of Agriculture, not DHEC, which was split in 2024. Whether serving meals to enrolled children triggers a permit is a question to put to that agency directly. Whatever you decide, write your food policy into your parent agreement, including allergy handling and whether families provide the food.

Step 9: Set Up Operations and Insurance

Before the first child arrives, prepare your enrollment packet, parent agreement, emergency contact forms, attendance log, and medication authorization forms. Put your tuition, hours, late pickup policy, and holiday schedule in writing. Then call your homeowner's insurance agent. Many standard homeowner policies exclude business activity, and a home daycare may need separate coverage. Ask about liability coverage that fits a child care operation, and get the answer in writing.

Step 10: Plan for Growth and Renewals

Build your business plan around the current rules. A bill that would have rewritten the child-to-caregiver ratio rules, S.594, was not enacted, so do not plan around it. If you hope to expand beyond 6 children, remember that caring for 7 to 12 children requires a group child care home license with a 3-year term under 2024 Act 216. Put renewal dates on your calendar: DSS registration renews annually, local business licenses are due April 30, and an LLC must keep its registered agent current. Keep a file of every filing, inspection report, and training certificate.

Costs and Timeline at a Glance

Item	Cost	Timing or processing	Where to confirm
LLC Articles of Organization	$110	24 to 48 business hours when filed online	Secretary of State (businessfilings.sc.gov)
Name reservation	$25	Reserved for 120 days, nonrenewable	Secretary of State
Corporation Articles of Incorporation	$110	Filed with Form CL-1	Secretary of State
Corporation initial License Fee (Form CL-1)	$25	Due within 60 days of doing business	Secretary of State
Trade name (DBA)	No separate filing fee	Listed on your local business license and IRS and SCDOR registrations	Your county or city
Local business license	Set locally	May 1 to April 30 license year, due April 30	localblrenewal.com
Retail License (only if you sell tangible goods)	$50, one-time and nonrefundable per location	Applied for through MyDORWAY	SC Department of Revenue
DSS registration	Confirm with DSS	Renews annually	SC Department of Social Services
Food permit (if applicable)	Confirm with the agency	Confirm before serving meals	SC Department of Agriculture

Tips for a Smoother Start

• Call DSS and your local zoning office before you sign a lease, buy equipment, or advertise.
• Ask every agency for its requirements in writing, and file the answers with your records.
• Open a separate business bank account so tuition and expenses stay easy to track.
• Use the South Carolina Small Business Development Centers for business planning help, and review regional resources on the SBA South Carolina page.
• Have an attorney review your parent agreement, since the contract shapes what happens when a family leaves or a payment is late.

Common Mistakes to Avoid

• Counting only unrelated children. Your own children count toward the 6-child limit.
• Enrolling children before zoning and registration are in place. Start only after DSS and your zoning confirmation are complete.
• Treating Secretary of State registration as a business license. A local business license is a separate requirement.
• Searching for a state DBA. South Carolina does not register DBAs at the state level, so list yours on your local business license and tax registrations.
• Assuming an LLC files an annual report. A standard LLC does not, but it does need a registered agent kept current.
• Skipping HOA or deed rules. Private restrictions can block a business even when zoning allows it.
• Planning around the S.594 ratio rewrite. That bill was not enacted.
• Missing renewals. DSS registration renews annually, and local licenses are due April 30.

What to Expect Once You Are Open

Registration generally allows you to care for children in your home under South Carolina's rules, and a well-documented program may help families feel confident about enrolling. Results depend on local demand, your enrollment, your schedule, and how you run the business, so no particular outcome is guaranteed. Many operators find that the first few months are the busiest for paperwork, with routines settling once families, forms, and renewal dates are organized. Plan a cash reserve for slow months, and review your enrollment and expenses every quarter.

Official Resources

• South Carolina Secretary of State, Business Entities Online: https://sos.sc.gov/online-filings/business-entities
• South Carolina Department of Revenue: https://dor.sc.gov/
• Local business licenses: localblrenewal.com
• South Carolina Small Business Development Centers: https://www.scsbdc.com/
• U.S. Small Business Administration, South Carolina: https://www.sba.gov/district/south-carolina

Because child care involves licensing, zoning, liability, and tax questions at the same time, consider consulting an attorney and a CPA before you open. This article is informational content, not legal or tax advice.