Small vs. Large Home Daycare License in California — Which One to Choose

California gives you two choices when you apply for a home daycare license: small or large. They are not just different names. They have different rules, different caps on how many kids you can care for, and different requirements for who else needs to be in your home.

Most people starting out should choose the small license. This article explains why — and when it makes sense to go large instead.

The Small License — What It Allows

The Small Family Day Care Home license is the starting point for most providers.

Base capacity: 6 children at one time. This is your licensed limit under normal conditions. Your own children under age 10 count toward this total — more on that below.

You can go up to 8 — under three specific conditions:

All three must be true at the same time:

1. One of the extra children (child number 7) is in kindergarten or elementary school and is in your care only before or after school hours.
2. The other extra child (child number 8) is at least 6 years old.
3. No more than 2 infants (children under 2 years old) are present when your total exceeds 6.

These are not soft guidelines. All three conditions must be met at once for the expanded capacity to apply.

Source: California Code of Regulations, Title 22, §102416.5.

Do you need an assistant? No. You can run a small home daycare by yourself. This is a significant advantage over the large license.

Who this is for: First-time providers. People who want to ease into the business. People who do not have an assistant lined up.

The Large License — What It Allows

The Large Family Day Care Home license is for providers who want to care for more children — and who are ready for more responsibility.

Base capacity: 12 children at one time — but only when a licensed or approved assistant is present. No exceptions. If your assistant leaves for the day, you must drop back to small home daycare limits.

You can go up to 14 under specific circumstances outlined in California Health & Safety Code §1597.465. Ask your Regional Office what those circumstances are for your situation.

Infant limit: No more than 4 children under 2 years old may be in your care at any one time under a large license.

Whose children count: Both your own children under 10 AND your assistant's children under 10 count toward your total capacity. This catches many providers off guard. If you and your assistant each have two young children at home during the day, that is four spots already used before a single paying child walks in.

Do you need an assistant? Yes — and this is the biggest difference from the small license. Your assistant must be licensed or approved by the state. They cannot be a family friend you trust. They go through the same background check process as you. This takes time and costs money.

How Your Own Children Count

This rule applies to both license types. It surprises a lot of people.

Your own children who are under age 10 count toward your licensed capacity.

Example — small license, two kids of your own: You have children ages 3 and 6 at home during the day. Your license allows 6 total. That means you can take in 4 outside children, not 6. Your two kids fill two of the six spots.

Example — large license, assistant with kids: Your license allows 12. You have one child at home (age 4). Your assistant has two children at home (ages 2 and 5). That is three spots used before enrollment begins. You can take in 9 outside children, not 12.

Do this math before you apply. It directly affects your income potential.

The Experience Requirement for Large

You cannot apply for a large license fresh. California requires that you have at least one year of experience as a licensed small home daycare provider before you can apply for a large license.

This is not optional. The state will look at your licensing history.

What this means in practice: plan on starting with the small license. Run your daycare for a year. Then, if you want to expand, apply for the large license.

The Income Difference

More children means more income. That is the main reason providers choose the large license.

The math is straightforward: if you charge the same weekly rate per child, a large license at full capacity generates roughly twice the tuition of a small license at full capacity.

But the costs are higher too. A licensed assistant is not free. Workers' compensation insurance is required if you have a paid employee. You will need more supplies, more space, and more organizational capacity.

Before you set your sights on the large license, run the numbers honestly. Add CACFP reimbursements to your income projection — that program pays $700 to $940 per month for a full small home daycare, and more for a large one. For more on CACFP, see CACFP for California Home Daycares.

The Application Process: What Is the Same, What Is Different

Same:

• You fill out the same 7 state forms (LIC 279, 279B, 508, 610A, 9108, 999A, 9217)
• You take the same 16-hour class
• You go through the same fingerprint process
• You schedule the same home safety inspection

Different:

• Application fee: $73 (small) vs. $140 (large)
• Renewal fee: $73 (small) vs. $140 (large)
• Assistant requirement: none for small, required for large
• Space requirements: more space is expected for large
• Experience requirement: one year of small license before applying for large

For a full breakdown of every requirement, see California Home Daycare License Requirements.

The Assistant Requirement — Details

For the large license, your assistant is not optional. Here is what to know:

They must be licensed or approved by the state. This means they go through the fingerprinting and background check process. They fill out their own Criminal Record Statement (LIC 508). They are reviewed by CDSS.

They must be present when you have more than 6 children. If your assistant calls in sick, you drop back to small license limits for that day. You cannot have 12 children present without your assistant.

You are responsible for them. If your assistant does something that puts children at risk, your license is at stake. Hiring a good assistant is one of the most important decisions you will make as a large license provider.

Workers' comp is required. If you pay your assistant — even a family member — you almost certainly need workers' compensation insurance. This costs roughly $50 to $150 per month for a small operation. For more detail, see Hiring an Assistant for Your Home Daycare.

Which License Should You Get?

Here is a simple decision guide:

Choose the small license if:

• This is your first license
• You do not have an assistant ready
• You have young children of your own at home
• You want to learn the business before scaling
• You want fewer requirements on day one

Choose the large license if:

• You already have at least one year of small license experience
• You have a qualified assistant who is ready and willing to go through state approval
• You have done the math and the income increase justifies the costs
• Your home has enough space for up to 12 children

When in doubt: Start small. The upgrade process is the same application — just filed after your first year. You lose nothing by starting small and growing. You gain experience, confidence, and a track record with your Regional Office.

Frequently Asked Questions

Can I care for 7 kids with a small license? Yes — but only if the specific three-condition rule is met: one child is school-age and in before/after school care only, the other extra child is at least 6, and no more than 2 infants are present when your total exceeds 6. All three must be true at once.

Can I have 12 kids with a large license if I'm the only adult in the room? No. The 12-child capacity requires a licensed or approved assistant to be present. Without your assistant, you must follow small license limits.

What counts as an "infant" in California? Any child under 2 years old. The large license caps infants at 4 at any one time.

Can I upgrade my small license to a large license? Yes — after at least one year. You apply again and go through the same process. Your experience and clean record make it straightforward.

Does my assistant need their own daycare license? Not necessarily. They need to be a licensed or approved assistant — which is a different designation from being a licensed provider. Your Regional Office will explain the approval process.

What to Do Next

1. Decide: small or large. For most people reading this, the answer is small.
2. Count your household. Your own children under 10 count toward your capacity. Know that number before you apply.
3. Talk to your Regional Office. If you have questions about your specific situation — your home's space, your assistant's status, your timeline — they are the right people to ask.

The full License Kit walks you through every step of the application process, for both small and large licenses. Get the Kit →

This article is for general information only. Rules can change. Verify current requirements at cdss.ca.gov or with your local Regional Office. Daycare License California is not part of the California state government.