How to Start a Daycare in South Dakota (2026)

The 8 Steps to Open a Daycare in South Dakota

Follow these in order. Each step is grounded in South Dakota's childcare licensing rules.

1. 1

   Research your state's rules

   Confirm whether your program needs a license in South Dakota. A provider caring for 12 or fewer children who does not receive compensation from public funds may choose whether or not to register, so registration is exempt up to 12 children at any one time (a count that includes the provider's own children under age six living in the home); registration becomes legally mandated once the provider receives compensation from public funds, per SD DSS "Registered Family Day Care" and SDCL 26-6-14.1 / 26-6-14.2 (Ch. 26-6).

   Read the rule that defines license-exempt care before you do anything else — it determines whether you operate as a family child care home, a center, or an exempt arrangement.

2. 2

   Complete pre-service training & CPR

   Finish the required pre-service training and certifications. No fixed clock-hour count is set; under ARSD 67:42:17:17 all providers must, within 90 days after the date of employment, complete and obtain documentation of orientation in 13 listed health-and-safety areas (infectious disease control; SIDS prevention/safe sleep; medication administration; food and allergic-reaction emergencies; building/premises safety; shaken baby syndrome/abusive head trauma; emergency preparedness; hazardous materials; transporting children; recognition and reporting of child abuse and neglect; pediatric first aid; pediatric CPR; and child development), and may not care for children without supervision until orientation in each area is complete, per the SD DSS Guide to Child Care Licensing Rules (effective May 2026).

   Plan for ongoing training too: Each provider of family day care counted in staff-child ratios shall complete 6 hours of annual training, and each director and provider of center and school-age programs counted in staff-child ratios shall complete 10 hours of annual training (orientation training hours count as annual training in the year completed), per ARSD 67:42:17:18; per the DSS handbook, providers in summer-only programs and regular substitutes complete 4 hours, while occasional substitutes need only maintain current pediatric CPR and Advanced Level II health-and-safety training.

3. 3

   Pass background checks

   Submit fingerprint-based background checks for yourself and every staff member, volunteer, and (where applicable) household member before anyone has unsupervised access to children.

   Background-check clearance often takes the longest of any single step — start it early so it doesn't gate your opening date.

4. 4

   Prepare your facility

   Set up a space that meets South Dakota's facility standards. A center program must have available a minimum of 35 sq ft of indoor play space and 50 sq ft of outdoor play space per child; a school-age program must have a minimum of 25 sq ft indoor and 50 sq ft outdoor per child (usable primary play space only, excluding permanent/stationary equipment, storage, halls, bathrooms, offices, and special-use areas such as a gym, cafeteria, or kitchen), per ARSD 67:42:17:34. No per-child square-footage standard is specified for family day care homes.

   Match your enrollment plan to capacity limits: A family day care provider may care for up to 12 children in the provider's home; with only one provider present no more than 4 of the 12 children may be under age two (and no more than 3 of those 4 may be under age one), while if a family day care assistant is present no more than 8 of the 12 children may be under age two; the provider's own children under age six are included in the total capacity and ratio, per ARSD 67:42:17:23 (the same text appears at ARSD 67:42:17:21 in the Cornell LII edition; effective 7/3/2023).

5. 5

   Submit your license application & fee

   File your application with the South Dakota Department of Social Services (DSS), Child Care Services — Office of Licensing and Accreditation (OLA), 700 Governors Drive, Pierre, SD 57501 and pay the licensing fee. Contact your South Dakota licensing office to confirm.

   Include your parent handbook, staff policies, enrollment forms, and operations manual — inspectors ask for these at the initial visit.

6. 6

   Pass the licensing inspection

   Schedule and pass your pre-licensing inspection. At least one pre-licensure inspection and at least one annual unannounced inspection by the Department to determine compliance (ARSD 67:42:17:03). Additional visits may occur to verify plans of correction, investigate complaints, or respond to reported incidents. (Construction/fire-safety standards are addressed under ARSD 67:42:17:31; a separate annual fire inspection is not stated in 67:42:17:03.)

   The inspector checks ratios, square footage, sanitation, emergency preparedness, and your written policies against the regulations.

7. 7

   Open your doors

   Once your license is issued, you can legally begin caring for children under South Dakota rules. Maintain the staff-to-child ratios at all times: Children up to 3 years of age 5:1 (five children to one provider) — ARSD 67:42:17:19, Children 3 years through 4 years 10:1 (ten children to one provider) — ARSD 67:42:17:19, Children 5 years and over (school-age) 15:1 (fifteen children to one provider) — ARSD 67:42:17:19, Mixed-age group, program serving 20 or fewer children 10:1, with no more than four children under age 2 in the group — ARSD 67:42:17:20, Mixed-age group serving more than 20 children that includes 3 or more children under age 3 5:1; otherwise (children 3+ only) the ratio of the age group comprising the majority of the group is maintained — ARSD 67:42:17:20

   Keep certifications current and your handbook updated — these are the items most often cited at renewal.

8. 8

   Enroll families

   Use your compliant enrollment paperwork to bring in families. A complete, South Dakota-specific parent handbook signals professionalism and keeps you inspection-ready from day one.

   Required enrollment and admission forms must be signed before a child's first day — have them ready before you advertise open spots.

Keep researching South Dakota

Licensing rules change. The figures above are compiled from South Dakota statutes and agency materials and are provided for informational purposes only — always verify current requirements with the South Dakota Department of Social Services (DSS), Child Care Services — Office of Licensing and Accreditation (OLA), 700 Governors Drive, Pierre, SD 57501 before applying. TotReady provides information and document templates, not legal advice.