
Can a Child Care License Transfer to a New Owner? State-by-State Rules for Selling a Daycare (2026)
- Primary data
- SMBB registry of child care center license rules on a change of ownership (51 jurisdictions) joined to Census County Business Patterns 2023, NAICS 624410
- Data period
- Law and rules as read 2026-11-02; establishment counts 2023
- Latest release used
- 2026-11-02
- Next release
- Registry recheck February 2027; CBP 2024 not yet posted on www2.census.gov as of 2026-11-02
- Geography
- 50 states and the District of Columbia
- Sources
- 59 (59 Tier 1)
A child care license transfer to a buyer is the exception. Of 51 jurisdictions, 42 have text saying a center license does not pass to a new owner, 2 allow a transfer with agency approval and 7 were not found. Only 9 state a notice period in days: 30 to 90, median 30.
Child care center license transfer registry: 50 states and DC
Checked every six months, and after state rulemaking. Last checked 2026-11-02. Entries are neutral records of public data; each links to its source record.
| Jurisdiction | Coded rule on a sale (transferable; buyer needs own license first; notice days; stock sale) | Date | Evidence | Source |
|---|---|---|---|---|
| Alabama | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: report only. Confidence: clear text. Ala. Admin. Code r. 660-5-26-.02(1)(d), (5)(d); r. 660-5-26-.08(2)(a)1 | 2026-11-02 | agency record | Record |
| Alaska | Transferable: yes with approval. Buyer must apply or be licensed first: not stated. Notice days: 30. Stock or entity sale: not stated. Confidence: interpretation needed. AS 47.32.080(b); 7 AAC 57.240(a)(2)(A) | 2026-11-02 | agency record | Record |
| Arizona | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. A.R.S. 36-882(N), (M); 36-893(C) | 2026-11-02 | agency record | Record |
| Arkansas | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Ark. DHS Minimum Licensing Requirements for Child Care Centers (PUB-002, rev. 12/01/2020), 103.5, 103.11 | 2026-11-02 | agency record | Record |
| California | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: 30. Stock or entity sale: yes. Confidence: clear text. Cal. Code Regs. tit. 22, 101167; Health and Safety Code 1597.14, 1596.858 (as reproduced in the CDSS manual) | 2026-11-02 | agency record | Record |
| Colorado | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. 8 CCR 1402-1, 2.106(A)(1); 2.105(A) | 2026-11-02 | agency record | Record |
| Connecticut | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Conn. Gen. Stat. 19a-80(b)(1) | 2026-11-02 | agency record | Record |
| Delaware | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: 90. Stock or entity sale: not stated. Confidence: clear text. 14 DE Admin. Code 933, 6.1, 6.3, 14.1, 14.1.1, 14.1.2 | 2026-11-02 | agency record | Record |
| District of Columbia | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: yes. Confidence: clear text. D.C. Code 7-2034(d) | 2026-11-02 | agency record | Record |
| Florida | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Fla. Stat. 402.308(2) | 2026-11-02 | agency record | Record |
| Georgia | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Ga. Comp. R. & Regs. 591-1-1-.16(d), (f), (i) | 2026-11-02 | agency record | Record |
| Hawaii | Transferable: not found. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: not found. HAR 17-892.2 (no transfer or ownership clause found) | 2026-11-02 | agency record | Record |
| Idaho | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. IDAPA 16.06.03.150.03, .04 | 2026-11-02 | agency record | Record |
| Illinois | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. 89 Ill. Adm. Code 407.50(e)(3); 407.60(b), (h); 407.70(c) | 2026-11-02 | agency record | Record |
| Indiana | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: interpretation needed. 470 IAC 3-4.7-3(a); 3-4.7-4(6); 3-4.7-5(b) | 2026-11-02 | agency record | Record |
| Iowa | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Iowa Admin. Code r. 441-109.2(2)(c) | 2026-11-02 | agency record | Record |
| Kansas | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. K.A.R. 28-4-421(b)(1); 28-4-422(a), (h)(3) | 2026-11-02 | agency record | Record |
| Kentucky | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: interpretation needed. 922 KAR 2:090 Section 4(5), (6); Section 13(4)(a) | 2026-11-02 | agency record | Record |
| Louisiana | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: yes. Confidence: clear text. LAC 28:CLXI.903 (Bulletin 137) | 2026-11-02 | agency record | Record |
| Maine | Transferable: not found. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: interpretation needed. 10-148 C.M.R. ch. 32, Section 2 (licensing) and Section 6(F) (other notifications) | 2026-11-02 | agency record | Record |
| Maryland | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: interpretation needed. MSDE Office of Child Care, Change of Licensee/Letter Holder of Child Care Centers, Resource Guide 2015 | 2026-11-02 | agency record | Record |
| Massachusetts | Transferable: not found. Buyer must apply or be licensed first: not stated. Notice days: 30. Stock or entity sale: not stated. Confidence: interpretation needed. 606 CMR 7.04 (Notification of Change of Ownership) | 2026-11-02 | agency record | Record |
| Michigan | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. MCL 722.118c | 2026-11-02 | agency record | Record |
| Minnesota | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: 90. Stock or entity sale: yes. Confidence: clear text. Minn. Stat. 142B.11, subds. 1 to 3 | 2026-11-02 | agency record | Record |
| Mississippi | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: yes. Confidence: clear text. Miss. Admin. Code 15-11-55, Rule 1.2.8 | 2026-11-02 | agency record | Record |
| Missouri | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. 5 CSR 25-500.042(14), (17)(C); RSMo 210.221.2(5) | 2026-11-02 | agency record | Record |
| Montana | Transferable: not found. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: not found. MCA 52-2-721, 52-2-722 (no transfer clause); ARM 37.95.108 (no transfer clause) | 2026-11-02 | agency record | Record |
| Nebraska | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: interpretation needed. DHHS instructions, Change of Ownership of an Existing Child Care Program; Neb. Rev. Stat. 71-1911(6) | 2026-11-02 | agency record | Record |
| Nevada | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. NAC 432A.210(3); NAC 432A.240(1) | 2026-11-02 | agency record | Record |
| New Hampshire | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. RSA 170-E:8, I | 2026-11-02 | agency record | Record |
| New Jersey | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. N.J.A.C. 3A:52-2.3(a) | 2026-11-02 | agency record | Record |
| New Mexico | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. 8.16.2.11(D), (E) NMAC | 2026-11-02 | agency record | Record |
| New York | Transferable: not found. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: not found. Social Services Law 390 (no transfer clause); 18 NYCRR 418-1 not retrieved | 2026-11-02 | agency record | Record |
| North Carolina | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: 30. Stock or entity sale: not stated. Confidence: clear text. 10A NCAC 09 .0204(a) | 2026-11-02 | agency record | Record |
| North Dakota | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: report only. Confidence: clear text. N.D. Admin. Code 75-03-10-07(2), (3); 75-03-10-09(3) | 2026-11-02 | agency record | Record |
| Ohio | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: interpretation needed. Ohio Adm. Code 5180:2-12-02(E)(3); 5180:2-12-05(K)(5) | 2026-11-02 | agency record | Record |
| Oklahoma | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: 30. Stock or entity sale: not stated. Confidence: interpretation needed. OKDHS Form 07LC091E, Change of Ownership (rev. 2026-04-01) | 2026-11-02 | agency record | Record |
| Oregon | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: 45. Stock or entity sale: not stated. Confidence: clear text. OAR 414-305-0130(1)(c), (5)(a); 414-305-0140(5) | 2026-11-02 | agency record | Record |
| Pennsylvania | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: 30. Stock or entity sale: no. Confidence: clear text. 55 Pa. Code 20.57; 20.58(a), (b); 3270.11(a) | 2026-11-02 | agency record | Record |
| Rhode Island | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. 218-RICR-70-00-1, 1.7, 1.13(A)(1)(c) | 2026-11-02 | agency record | Record |
| South Carolina | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. S.C. Code Regs. 114-502(B)(1), (E)(1)(a) | 2026-11-02 | agency record | Record |
| South Dakota | Transferable: not found. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: not found. S.D. Admin. R. 67:42:17:06; SDCL ch. 26-6 (no transfer provision found) | 2026-11-02 | agency record | Record |
| Tennessee | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Tenn. Comp. R. & Regs. 1240-04-01-.04(1)(d); 1240-04-01-.03(2)(a)7 | 2026-11-02 | agency record | Record |
| Texas | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Tex. Hum. Res. Code 42.048(e); 42.051(a)(3) | 2026-11-02 | agency record | Record |
| Utah | Transferable: not found. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: not stated. Confidence: not found. | 2026-11-02 | not found | Record |
| Vermont | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Vt. Licensing Regulations for Center Based Child Care and Preschool Programs 2.3.2.4, 2.3.5.1 | 2026-11-02 | agency record | Record |
| Virginia | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: report only. Confidence: clear text. 8VAC20-821-30(A); 8VAC20-821-250(B) | 2026-11-02 | agency record | Record |
| Washington | Transferable: yes with approval. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: report only. Confidence: clear text. RCW 43.216.305(1); WAC 110-300-0011; WAC 110-300-0400(1) | 2026-11-02 | agency record | Record |
| West Virginia | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. W. Va. Code R. 78-1-4.1.c, 4.1.e (as reproduced in the agency's 78CSR1 compliance checklist, 2023 to 2028) | 2026-11-02 | agency record | Record |
| Wisconsin | Transferable: no. Buyer must apply or be licensed first: not stated. Notice days: not stated. Stock or entity sale: report only. Confidence: interpretation needed. DCF guide, Buying or Selling a Regulated Child Care Facility (updated July 2024); Wis. Admin. Code DCF 251.04, 251.11 (no transfer clause found) | 2026-11-02 | agency record | Record |
| Wyoming | Transferable: no. Buyer must apply or be licensed first: yes. Notice days: not stated. Stock or entity sale: not stated. Confidence: clear text. Wyo. DFS Child Care Licensing Rules ch. 2, secs. 2(b), 6(c), 6(f) | 2026-11-02 | agency record | Record |
In 42 jurisdictions the child care license transfer stops at the seller
The default rule is plain: a center license belongs to the licensee and the location, so a buyer applies for its own. 42 of the 51 jurisdictions say so in a statute, rule or agency form, which is 95.5 percent of the 44 jurisdictions where an answer was found.
Child care license transfer: Moving an existing child care center license from the selling licensee to a buyer without a new license application. In this registry 'no' means the text says the license is not transferable, ends on the sale, or must be replaced by a new license.
Wording varies but the effect is the same. Texas Human Resources Code 42.048(e) says a license is not transferable and that a change in ownership automatically revokes it (Texas statute). Missouri's rule 5 CSR 25-500.042 makes the license null and void when the facility changes ownership. New Mexico's 8.16.2.11 NMAC says the license expires on the day the facility is sold. Minnesota Stat. 142B.11 calls a license not transferable or assignable.
| Transferable on sale | Jurisdictions | Child day care establishments (CBP 2023) | Share of U.S. establishments (%) |
|---|---|---|---|
| no | 42 | 68138 | 82.9 |
| yes with approval | 2 | 2559 | 3.1 |
| not found | 7 | 11465 | 14.0 |
| Total | 51 | 82162 | 100.0 |
Establishments are Census CBP 2023 employer counts for NAICS 624410 in each group of jurisdictions.
Source: [1] U.S. Census Bureau
Child day care establishments (NAICS 624410, CBP 2023) by the coded transfer rule of their state
Source: SMBB registry of state child care rules (checked 2026-11-02); U.S. Census Bureau, County Business Patterns 2023.
Weighted by employers, the pattern is stronger. 68,138 of the 82,162 child day care establishments counted by the Census Bureau's County Business Patterns for 2023, or 82.9 percent, are in jurisdictions where the coded text says the license does not transfer (CBP 2023).
Washington and Alaska are the only places where the license can move to the buyer
Only 2 jurisdictions allow a license to pass to a new owner, and both require the agency to agree first.
Washington is the clearest case. RCW 43.216.305 says a full license may be transferred to a new licensee in the event of a transfer of ownership, and WAC 110-300-0011 sets the test: the department must find the buyer's operation substantially similar to or an improvement on the original. On request it discloses four years of complaints, findings and enforcement actions to either party, and a denied transfer can be appealed (WAC 110-300). A change of ownership or incorporation must also be reported within 24 hours.
Alaska's statute, AS 47.32.080(b), says a license is not transferable unless the department authorizes it, and 7 AAC 57.240 requires 30 days of notice before a planned change in the person operating the facility (Alaska statute). The rule does not say whether the buyer may operate before approval, so the row is marked interpretation needed.

Nine jurisdictions put a number on the warning, and 30 days is the norm
Only 9 jurisdictions state an advance-notice period in days. The median is 30 days and the range runs from 30 to 90.
| Jurisdiction | Notice (days) | What the text requires | Citation |
|---|---|---|---|
| Delaware | 90 | notify OCCL in writing at least 90 days before a change of ownership; prospective licensee completes initial licensing steps before the sale | 14 DE Admin. Code 933, 6.1, 6.3, 14.1, 14.1.1, 14.1.2 |
| Minnesota | 90 | written notice and new license application at least 90 days before the anticipated change in ownership | Minn. Stat. 142B.11, subds. 1 to 3 |
| Oregon | 45 | application for a change of owner due at least 45 days before the change | OAR 414-305-0130(1)(c), (5)(a); 414-305-0140(5) |
| Alaska | 30 | not later than 30 days before a planned change in the person operating the facility | AS 47.32.080(b); 7 AAC 57.240(a)(2)(A) |
| California | 30 | written notice to the department and parents at least 30 days before transfer, or when a bona fide offer is made, whichever is longer; buyer applies within 5 days of accepted offer | Cal. Code Regs. tit. 22, 101167; Health and Safety Code 1597.14, 1596.858 (as reproduced in the CDSS manual) |
| Massachusetts | 30 | prior written notification to the Department no less than 30 days before any change in ownership | 606 CMR 7.04 (Notification of Change of Ownership) |
| North Carolina | 30 | prospective new owner applies for a new license at least 30 days before acquiring ownership | 10A NCAC 09 .0204(a) |
| Oklahoma | 30 | notify Licensing at least 30 calendar days before a change in business entity or ownership | OKDHS Form 07LC091E, Change of Ownership (rev. 2026-04-01) |
| Pennsylvania | 30 | notify the Department and submit a new application at least 30 days before a change of legal entity | 55 Pa. Code 20.57; 20.58(a), (b); 3270.11(a) |
Minimum periods as stated; other jurisdictions require notice before the sale or within 24 hours after it without a day count.
Source: [4][7][10][24][26][36][39][59][41] Alaska Department of Health, Child Care Program Office; California Department of Social Services, Community Care Licensing Division; Delaware Department of Education, Office of Child Care Licensing; Massachusetts Department of Early Education and Care; Minnesota Department of Children, Youth, and Families; North Carolina Division of Child Development and Early Education; Oklahoma Human Services, Child Care Services; Oregon State Legislature; Pennsylvania Department of Human Services, Office of Child Development and Early Learning
Minimum days of notice to the licensing agency before a change of ownership
Source: SMBB coding of state statutes, rules and agency forms, checked 2026-11-02.
Delaware and Minnesota sit at the top at 90 days. Delaware's 14 DE Admin. Code 933 requires written notice to the Office of Child Care Licensing at least 90 days before a change of ownership, and the buyer's license takes effect on the date the center is sold. Oregon requires the buyer's application at least 45 days before a change of owner (OAR 414-305-0130). In Minnesota both the seller's written notice and the buyer's license application are due at least 90 days before the change in ownership, and the seller remains responsible for the program until the new license issues (Minn. Stat. 142B.11). California pairs its 30-day notice with a 5-day deadline for the buyer to apply after the seller accepts an offer, and the department decides within 60 days of a complete application (22 CCR 101167, quoting Health and Safety Code 1597.14).
Elsewhere the text asks for notice without a number. Alabama requires a written report before a change in ownership occurs; Kentucky wants written notice signed by each owner so the change can be approved before it happens; Maryland's agency guide asks sellers to notify the regional office before the sale. South Dakota and Maine only require a report within 24 hours after a change in ownership.
A stock sale can still count as a change of ownership in five jurisdictions, but not in Pennsylvania
Selling the shares of the licensed company instead of the center's assets does not avoid relicensing everywhere. 5 jurisdictions say an ownership-interest sale triggers it, 1 says it does not, and 5 treat entity or governance changes as report-only items.
| Jurisdiction | Stock or entity sale | What the text says | Citation |
|---|---|---|---|
| Alabama | report only | Change of the corporation's chief executive officer must be reported; stock sale not addressed | Ala. Admin. Code r. 660-5-26-.02(1)(d), (5)(d); r. 660-5-26-.08(2)(a)1 |
| California | yes | License is forfeited on a sale or transfer, except a stock transfer in a corporate licensee that is not a majority change in ownership (H&S Code 1596.858 as quoted by CDSS) | Cal. Code Regs. tit. 22, 101167; Health and Safety Code 1597.14, 1596.858 (as reproduced in the CDSS manual) |
| District of Columbia | yes | A change in the legal or beneficial ownership of a percentage of stock of a corporate licensee, set by rule, requires relicensure | D.C. Code 7-2034(d) |
| Louisiana | yes | Any transfer of partial or full ownership of the center from an individual or juridical entity to another, or a change in federal or state tax ID or profit status, may constitute a change of ownership | LAC 28:CLXI.903 (Bulletin 137) |
| Minnesota | yes | Sale or transfer of 100 percent of the property, stock or assets, a merger, a new federal tax ID, or a change of all controlling individuals is a change in ownership, unless one controlling individual has been in place 12 months | Minn. Stat. 142B.11, subds. 1 to 3 |
| Mississippi | yes | Change of ownership includes cash or stock transactions whenever any person or entity acquires or controls a majority interest, and conversions between partnership, sole proprietorship and corporation | Miss. Admin. Code 15-11-55, Rule 1.2.8 |
| North Dakota | report only | Operator must notify the department of major changes in the operation, ownership, or governing body | N.D. Admin. Code 75-03-10-07(2), (3); 75-03-10-09(3) |
| Pennsylvania | no | A transfer of stock of a corporation does not constitute a change of ownership of the legal entity (55 Pa. Code 20.57(b)(1)) | 55 Pa. Code 20.57; 20.58(a), (b); 3270.11(a) |
| Virginia | report only | Change of business formation must be reported immediately | 8VAC20-821-30(A); 8VAC20-821-250(B) |
| Washington | report only | A change of ownership or incorporation of the provider's business entity must be reported within 24 hours (WAC 110-300-0425(7)(b)(iii)) | RCW 43.216.305(1); WAC 110-300-0011; WAC 110-300-0400(1) |
| Wisconsin | report only | Background check form due by next business day when a corporation or LLC designates a new person subject to background checks (DCF 251.04(2)(n)2); agency guide says the licensing specialist decides whether a change in ownership type needs a new application | DCF guide, Buying or Selling a Regulated Child Care Facility (updated July 2024); Wis. Admin. Code DCF 251.04, 251.11 (no transfer clause found) |
'yes' means the text makes a stock or ownership-interest sale a change of ownership; 'no' means it says the opposite; 'report only' means a notice duty without relicensure.
Source: [26][7][11][41][3][49][37][48][51] Minnesota Department of Children, Youth, and Families; California Department of Social Services, Community Care Licensing Division; Office of the State Superintendent of Education, Division of Early Learning; Pennsylvania Department of Human Services, Office of Child Development and Early Learning; Alabama Department of Human Resources; Washington Department of Children, Youth, and Families; North Dakota Department of Health and Human Services; Virginia Department of Education, Office of Child Care Health and Safety; Wisconsin Department of Children and Families
Minnesota counts the sale of 100 percent of the stock as a change in ownership, along with mergers, a new federal tax ID or a change of every controlling individual, unless one controlling individual has been in place for 12 months. California's Health and Safety Code 1596.858, as quoted in the CDSS manual, forfeits the license on a sale except a stock transfer that is not a majority change. D.C. Code 7-2034(d) requires relicensure when a set percentage of a corporate licensee's stock changes hands (D.C. Code). Mississippi Rule 1.2.8 counts stock transactions that give any person or entity a majority interest, and Louisiana's LAC 28:CLXI.903 says any transfer of partial or full ownership may constitute a change of ownership.
Pennsylvania goes the other way. 55 Pa. Code 20.57(b)(1) says a transfer of stock of a corporation does not constitute a change of ownership of the legal entity, so the certificate of compliance survives a share sale but is void on a change of the legal entity itself (55 Pa. Code 20.57). Most other texts are silent on share sales, which is why deal structure is worth raising with the agency early. The SMBB overview of how a business sale moves through its stages shows where that conversation usually fits.
Where the buyer must line up its own license before taking over
In 28 jurisdictions the text requires the buyer to apply or be approved before taking over, bars it from operating until it holds a license, or ends the seller's license on the sale. Those jurisdictions hold 51,773 child day care establishments, 63.0 percent of the U.S. total in CBP 2023.
The 28 are Alabama, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maryland, Minnesota, Missouri, Nebraska, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, West Virginia and Wyoming.
- Georgia: in no case shall a new owner operate without first securing a new license or permit; a permit issued on a change of ownership is valid for 21 calendar days (Ga. Comp. R. & Regs. 591-1-1-.16).
- Florida: the facility must reapply and receive a license before the new owner assumes responsibility, and the department must decide within 45 days (Fla. Stat. 402.308(2)).
- Idaho: a license must be obtained before starting operations after a change in ownership (IDAPA 16.06.03.150.03, .04).
- Nebraska (agency instructions): if a sale closes before the new license is issued, the facility must cease operation on the date of the sale.
- Oklahoma (agency form): the seller's licensing case closes on the bill of sale date and the buyer's license may take effect the next day.
- Maryland (agency guide, 2015): the seller may keep operating until the buyer can assume operation, and the seller's record closes the day before the buyer's license issues.
Several states soften the gap. California lets a compliant buyer operate while the department decides; Minnesota keeps the seller responsible until the buyer's license issues; Missouri statute RSMo 210.221.2(5) schedules an unannounced inspection within 60 days after a change in ownership. Licensing is one of several ownership-change approvals a seller may face; the nursing home change of ownership report covers a stricter federal and state process for another licensed business.

Eight in ten daycare employers sit in states where the license stays with the seller
The 42 no-transfer jurisdictions hold 68,138 of 82,162 U.S. child day care establishments (82.9 percent) and 879,919 paid employees (84.2 percent).
| Jurisdiction | Establishments (CBP 2023) | Paid employees (CBP 2023) | Transferable on sale | Buyer must apply or be licensed first |
|---|---|---|---|---|
| California | 9670 | 89288 | no | yes |
| New York | 6702 | 84613 | not found | not stated |
| Texas | 6242 | 91240 | no | yes |
| Florida | 4651 | 64646 | no | yes |
| Pennsylvania | 3823 | 46742 | no | yes |
| Illinois | 3138 | 42273 | no | yes |
| Ohio | 2813 | 37950 | no | not stated |
| North Carolina | 2612 | 35736 | no | yes |
| New Jersey | 2466 | 41650 | no | not stated |
| Georgia | 2449 | 40515 | no | yes |
| Washington | 2386 | 22898 | yes with approval | yes |
| Massachusetts | 2309 | 32471 | not found | not stated |
CBP 2023 establishments and mid-March paid employees, NAICS 624410.
Source: [1][7][46][12][41][16] U.S. Census Bureau; California Department of Social Services, Community Care Licensing Division; Texas Health and Human Services Commission, Child Care Regulation; Florida Department of Children and Families; Pennsylvania Department of Human Services, Office of Child Development and Early Learning; Illinois Department of Children and Family Services (day care licensing)
Child day care establishments, CBP 2023; label shows the coded transfer rule
Source: U.S. Census Bureau, County Business Patterns 2023; SMBB registry.
California (9,670 establishments), Texas (6,242), Florida, Pennsylvania and Illinois all fall in the no-transfer group. New York (6,702 establishments) and Massachusetts are the largest jurisdictions without a coded answer; Massachusetts requires 30 days' notice of a change in ownership under 606 CMR 7.04 but does not say whether the license survives it.
The average child day care establishment had 12.7 paid employees in March 2023 (CBP 2023), which is the scale of business most of these rules govern. CBP counts employer establishments under NAICS 624410, which includes some employer-run home programs as well as centers, so the counts describe the industry rather than licensed centers alone.
Seven jurisdictions where the text ran out
7 jurisdictions have no coded transferability answer: 5 where the text could not be retrieved or was silent, plus Maine and Massachusetts, whose rules set notice duties without saying whether the license survives.
| Confidence | Jurisdictions | Child day care establishments (CBP 2023) |
|---|---|---|
| clear text | 36 | 60464 |
| interpretation needed | 10 | 13216 |
| not found | 5 | 8482 |
Clear text: the rule or statute answers the question directly. Interpretation needed: an agency form or guide, or wording that implies the answer. Not found: text not retrieved or silent.
Source: [1] U.S. Census Bureau
Jurisdictions by coding confidence
Source: SMBB registry, checked 2026-11-02.
The not-found group is Hawaii, Maine, Massachusetts, Montana, New York, South Dakota and Utah. The Hawaii, Montana and South Dakota texts that were opened are silent on a sale; New York's and Utah's rule sites block scripted access or render only with scripts, and this report does not use proxy readers or bypass bot checks. Each gap and what was tried is listed in excluded.md. A 'not found' row is not evidence that the license transfers.
State-by-state registry of child care center license rules on a sale
One row per jurisdiction for the child care center license (family child care homes are excluded). Checked 2026-11-02.
Show all 51 rows
| Jurisdiction | Transferable on sale | Buyer must apply or be licensed first | Notice (days) | Stock or entity sale | Citation | Confidence |
|---|---|---|---|---|---|---|
| Alabama | no | yes | not stated | report only | Ala. Admin. Code r. 660-5-26-.02(1)(d), (5)(d); r. 660-5-26-.08(2)(a)1 | clear text |
| Alaska | yes with approval | not stated | 30 | not stated | AS 47.32.080(b); 7 AAC 57.240(a)(2)(A) | interpretation needed |
| Arizona | no | not stated | not stated | not stated | A.R.S. 36-882(N), (M); 36-893(C) | clear text |
| Arkansas | no | yes | not stated | not stated | Ark. DHS Minimum Licensing Requirements for Child Care Centers (PUB-002, rev. 12/01/2020), 103.5, 103.11 | clear text |
| California | no | yes | 30 | yes | Cal. Code Regs. tit. 22, 101167; Health and Safety Code 1597.14, 1596.858 (as reproduced in the CDSS manual) | clear text |
| Colorado | no | yes | not stated | not stated | 8 CCR 1402-1, 2.106(A)(1); 2.105(A) | clear text |
| Connecticut | no | not stated | not stated | not stated | Conn. Gen. Stat. 19a-80(b)(1) | clear text |
| Delaware | no | yes | 90 | not stated | 14 DE Admin. Code 933, 6.1, 6.3, 14.1, 14.1.1, 14.1.2 | clear text |
| District of Columbia | no | not stated | not stated | yes | D.C. Code 7-2034(d) | clear text |
| Florida | no | yes | not stated | not stated | Fla. Stat. 402.308(2) | clear text |
| Georgia | no | yes | not stated | not stated | Ga. Comp. R. & Regs. 591-1-1-.16(d), (f), (i) | clear text |
| Hawaii | not found | not stated | not stated | not stated | HAR 17-892.2 (no transfer or ownership clause found) | not found |
| Idaho | no | yes | not stated | not stated | IDAPA 16.06.03.150.03, .04 | clear text |
| Illinois | no | yes | not stated | not stated | 89 Ill. Adm. Code 407.50(e)(3); 407.60(b), (h); 407.70(c) | clear text |
| Indiana | no | not stated | not stated | not stated | 470 IAC 3-4.7-3(a); 3-4.7-4(6); 3-4.7-5(b) | interpretation needed |
| Iowa | no | not stated | not stated | not stated | Iowa Admin. Code r. 441-109.2(2)(c) | clear text |
| Kansas | no | yes | not stated | not stated | K.A.R. 28-4-421(b)(1); 28-4-422(a), (h)(3) | clear text |
| Kentucky | no | yes | not stated | not stated | 922 KAR 2:090 Section 4(5), (6); Section 13(4)(a) | interpretation needed |
| Louisiana | no | yes | not stated | yes | LAC 28:CLXI.903 (Bulletin 137) | clear text |
| Maine | not found | not stated | not stated | not stated | 10-148 C.M.R. ch. 32, Section 2 (licensing) and Section 6(F) (other notifications) | interpretation needed |
| Maryland | no | yes | not stated | not stated | MSDE Office of Child Care, Change of Licensee/Letter Holder of Child Care Centers, Resource Guide 2015 | interpretation needed |
| Massachusetts | not found | not stated | 30 | not stated | 606 CMR 7.04 (Notification of Change of Ownership) | interpretation needed |
| Michigan | no | not stated | not stated | not stated | MCL 722.118c | clear text |
| Minnesota | no | yes | 90 | yes | Minn. Stat. 142B.11, subds. 1 to 3 | clear text |
| Mississippi | no | not stated | not stated | yes | Miss. Admin. Code 15-11-55, Rule 1.2.8 | clear text |
| Missouri | no | yes | not stated | not stated | 5 CSR 25-500.042(14), (17)(C); RSMo 210.221.2(5) | clear text |
| Montana | not found | not stated | not stated | not stated | MCA 52-2-721, 52-2-722 (no transfer clause); ARM 37.95.108 (no transfer clause) | not found |
| Nebraska | no | yes | not stated | not stated | DHHS instructions, Change of Ownership of an Existing Child Care Program; Neb. Rev. Stat. 71-1911(6) | interpretation needed |
| Nevada | no | not stated | not stated | not stated | NAC 432A.210(3); NAC 432A.240(1) | clear text |
| New Hampshire | no | not stated | not stated | not stated | RSA 170-E:8, I | clear text |
| New Jersey | no | not stated | not stated | not stated | N.J.A.C. 3A:52-2.3(a) | clear text |
| New Mexico | no | yes | not stated | not stated | 8.16.2.11(D), (E) NMAC | clear text |
| New York | not found | not stated | not stated | not stated | Social Services Law 390 (no transfer clause); 18 NYCRR 418-1 not retrieved | not found |
| North Carolina | no | yes | 30 | not stated | 10A NCAC 09 .0204(a) | clear text |
| North Dakota | no | not stated | not stated | report only | N.D. Admin. Code 75-03-10-07(2), (3); 75-03-10-09(3) | clear text |
| Ohio | no | not stated | not stated | not stated | Ohio Adm. Code 5180:2-12-02(E)(3); 5180:2-12-05(K)(5) | interpretation needed |
| Oklahoma | no | yes | 30 | not stated | OKDHS Form 07LC091E, Change of Ownership (rev. 2026-04-01) | interpretation needed |
| Oregon | no | yes | 45 | not stated | OAR 414-305-0130(1)(c), (5)(a); 414-305-0140(5) | clear text |
| Pennsylvania | no | yes | 30 | no | 55 Pa. Code 20.57; 20.58(a), (b); 3270.11(a) | clear text |
| Rhode Island | no | yes | not stated | not stated | 218-RICR-70-00-1, 1.7, 1.13(A)(1)(c) | clear text |
| South Carolina | no | yes | not stated | not stated | S.C. Code Regs. 114-502(B)(1), (E)(1)(a) | clear text |
| South Dakota | not found | not stated | not stated | not stated | S.D. Admin. R. 67:42:17:06; SDCL ch. 26-6 (no transfer provision found) | not found |
| Tennessee | no | not stated | not stated | not stated | Tenn. Comp. R. & Regs. 1240-04-01-.04(1)(d); 1240-04-01-.03(2)(a)7 | clear text |
| Texas | no | yes | not stated | not stated | Tex. Hum. Res. Code 42.048(e); 42.051(a)(3) | clear text |
| Utah | not found | not stated | not stated | not stated | not found | not found |
| Vermont | no | yes | not stated | not stated | Vt. Licensing Regulations for Center Based Child Care and Preschool Programs 2.3.2.4, 2.3.5.1 | clear text |
| Virginia | no | not stated | not stated | report only | 8VAC20-821-30(A); 8VAC20-821-250(B) | clear text |
| Washington | yes with approval | yes | not stated | report only | RCW 43.216.305(1); WAC 110-300-0011; WAC 110-300-0400(1) | clear text |
| West Virginia | no | yes | not stated | not stated | W. Va. Code R. 78-1-4.1.c, 4.1.e (as reproduced in the agency's 78CSR1 compliance checklist, 2023 to 2028) | clear text |
| Wisconsin | no | not stated | not stated | report only | DCF guide, Buying or Selling a Regulated Child Care Facility (updated July 2024); Wis. Admin. Code DCF 251.04, 251.11 (no transfer clause found) | interpretation needed |
| Wyoming | no | yes | not stated | not stated | Wyo. DFS Child Care Licensing Rules ch. 2, secs. 2(b), 6(c), 6(f) | clear text |
Coded from the official text saved in raw/; checked 2026-11-02. Full columns, URLs, revision dates and notes in registry.csv.
Source: [3][4][5][6][7][8][9][10][11][12] Alabama Department of Human Resources; Alaska Department of Health, Child Care Program Office; Arizona Department of Health Services, Bureau of Child Care Licensing; Arkansas Department of Human Services, Division of Child Care and Early Childhood Education; California Department of Social Services, Community Care Licensing Division; Colorado Department of Early Childhood, Division of Early Learning, Licensing, and Administration; Connecticut Office of Early Childhood; Delaware Department of Education, Office of Child Care Licensing; Office of the State Superintendent of Education, Division of Early Learning; Florida Department of Children and Families
Counts and distributions
Jurisdictions where the license does not transfer
Formulacount(transferable == 'no')
Inputs: registry rows (tables/registry.csv) (fact sheet rows)
Result: 42 of 51
The non-transfer rule is the norm wherever text was found.
Limitations: Four rows rest on agency forms or guides (OK, MD, NE, WI).
Share of answered jurisdictions with no transfer
Formulad1 / (d1 + d2) * 100
Inputs: d1, d2 (fact sheet rows)
Result: 95.5 percent
Only Washington and Alaska allow a transfer, both with approval.
Limitations: Excludes the 7 not-found jurisdictions.
Median and range of advance-notice periods
Formulamedian, min and max of notice_days
Inputs: d5 rows (t3) (fact sheet rows)
Result: median 30 days; range 30 to 90 days; n = 9
Thirty days is the common floor; Delaware and Minnesota triple it.
Limitations: Small sample; notice without a day count is not included.
Share of child day care establishments in no-transfer jurisdictions (signature figure)
Formulasum(CBP est where transferable == 'no') / sum(CBP est, 51 jurisdictions) * 100
Inputs: d12, d13; CBP 2023 rows (fact sheet rows)
Result: 68,138 / 82,162 = 82.9 percent
Roughly eight in ten daycare employers would face a new license application on a sale.
Limitations: CBP counts employer establishments in NAICS 624410, not licensed centers; not-found states are left out of the numerator.
Share of establishments where the buyer must hold its own license before operating
Formulad19 / d12 * 100
Inputs: d9, d12, d19 (fact sheet rows)
Result: 51,773 / 82,162 = 63.0 percent
In these places a closing date that runs ahead of the license approval can force a gap in operation.
Limitations: Coded only where the text says so; other states may apply the same practice.
No-transfer share among establishments with a coded answer
Formulad13 / (d13 + d15) * 100
Inputs: d13, d15 (fact sheet rows)
Result: 96.4 percent
Washington's transfer option covers a small slice of the industry.
Limitations: Weights by employer count only.
Key findings
- 42 of 51 jurisdictions have text saying a child care center license does not pass to a buyer on a sale (SMBB registry, checked 2026-11-02).[46][26][28][34]
- Among the 44 jurisdictions with an answer, 95.5 percent say the license does not transfer.[46][49][4]
- Washington (RCW 43.216.305; WAC 110-300-0011) allows a full license to transfer to a new licensee if the department finds the new operation substantially similar or improved.[49]
- Alaska's AS 47.32.080(b) bars transfer unless the department authorizes it.[4]
- Only 9 jurisdictions state an advance-notice period in days; the median is 30 days and the range 30 to 90 days.[26][7][36][41]
- Delaware and Minnesota require 90 days of notice before a change in ownership (14 DE Admin. Code 933; Minn. Stat. 142B.11).[10][26]
- California requires 30 days' notice to the department and parents, a buyer application within 5 days of an accepted offer, and a department decision within 60 days of a complete application.[7]
- 5 jurisdictions (California, District of Columbia, Louisiana, Minnesota and Mississippi) make a stock or ownership-interest sale of a corporate licensee a relicensing event.[26][7][11]
- Pennsylvania says a transfer of corporate stock is not a change of ownership of the legal entity (55 Pa. Code 20.57(b)(1)).[41]
- In 28 jurisdictions the buyer must apply or be licensed before taking over, or the seller's license ends on the sale.[13][15][12][50]
- 68,138 of 82,162 U.S. child day care establishments (82.9 percent) are in no-transfer jurisdictions (CBP 2023).[1]
- Child day care services had 1,045,052 paid employees across 82,162 establishments in March 2023 (CBP 2023, released 2025-06-26).[1][2]
- Florida must grant or deny a change-of-ownership reapplication within 45 days (Fla. Stat. 402.308(2)).[12]
- Georgia may issue a permit valid for 21 calendar days on a change of ownership; a new owner may not operate without a new license or permit.[13]
Executive summary
- 42 of 51 jurisdictions have text saying a child care center license does not transfer to a buyer; 2 allow a transfer with approval; 7 were not found.
- 68,138 child day care establishments, 82.9 percent of the U.S. total in CBP 2023, operate in the no-transfer jurisdictions.
- In 28 jurisdictions the buyer must apply or be licensed before taking over, or the seller's license ends at the sale.
- Only 9 jurisdictions give a notice period in days: 30 days in six, 45 in Oregon, 90 in Delaware and Minnesota.
- A stock sale triggers relicensing in California, District of Columbia, Louisiana, Minnesota and Mississippi; Pennsylvania says a stock transfer is not a change of ownership.
- Washington is the only state with a rule-based transfer test: the new operation must be substantially similar or better.
- Not legal advice: confirm the process with the licensing agency or an attorney before signing.
Questions people ask
Can I transfer my daycare license to a new owner?
In most states, no. 42 of 51 jurisdictions have text saying a center license does not transfer; Washington allows a transfer if the department approves it, and Alaska allows one only if the department authorizes it. The buyer usually files its own application, with background checks and often an inspection.
How do I sell my daycare business?
Tell the licensing agency early, check whether your state requires a set notice period (30 days in six jurisdictions, 45 in Oregon, 90 in Delaware and Minnesota), and time the closing to the buyer's license approval, because in many states the seller's license ends on the sale. A purchase agreement can make the buyer's license approval a condition of closing. This is general information, not legal advice.
Does a child care center need a new license after a change of ownership?
Yes in nearly every state with text on point. In 28 jurisdictions the buyer must apply or be licensed before taking over, or the seller's license ends at the sale; examples are Georgia 591-1-1-.16, Idaho 16.06.03.150 and West Virginia 78-1-4.1.e.
How long does a daycare license take?
The text sets a few decision clocks: Florida must decide a change-of-ownership reapplication within 45 days, California within 60 days of a complete application, Washington within 90 days, and Iowa notifies initial applicants within 120 days. Inspections, background checks and local fire approvals can add time.
Frequently asked questions
Is a daycare license an asset I can sell?
Generally not. In 42 jurisdictions the center license is personal to the licensee and location, so the buyer pays for the business and applies for its own license.
Which states let a child care license transfer?
Washington, under RCW 43.216.305 and WAC 110-300-0011, and Alaska, where AS 47.32.080(b) allows a transfer only if the department authorizes it.
How much notice do I give the state before selling a daycare?
Where a number is stated it is 30 days in Alaska, California, Massachusetts, North Carolina, Oklahoma and Pennsylvania, 45 days in Oregon, and 90 days in Delaware and Minnesota. Many other states require notice before the sale without a day count.
Does selling the shares of my daycare company avoid a new license?
Not always. Minnesota (sale of 100 percent of the stock), California (majority stock change), Mississippi (majority interest), Louisiana (partial or full ownership transfer) and DC (a stock percentage set by rule) treat it as a change of ownership; Pennsylvania says a stock transfer is not one.
Can the buyer run the center while the new license is pending?
It depends on the state. Georgia, Idaho and West Virginia bar operation until the new license or permit issues; California treats a buyer who followed the notice steps as licensed while the department decides; Maryland lets the seller keep operating until the buyer is ready.
How many child day care businesses are there in the U.S.?
County Business Patterns counted 82,162 employer establishments in NAICS 624410 across the 50 states and DC in 2023, with 1,045,052 paid employees.
Which state has the most child day care establishments?
California, with 9,670 establishments in CBP 2023, followed by New York and Texas (6,242).
Do family child care homes follow the same rules?
Not necessarily. This registry codes center licenses only. Minnesota, for example, exempts programs in the license holder's own home from its change-of-ownership application rule.
What happens to the seller's license after closing?
In many states it ends: Texas revokes it automatically on a change in ownership, Missouri makes it null and void, New Mexico has it expire on the day of the sale, and New Hampshire requires it to be surrendered.
Where can I check my state's current rule?
Each registry row links the official statute, rule or agency document that was read, with the date checked. Confirm the current process with the licensing agency or an attorney, since rules are amended often.
Download the data
Every table in this report is available as a CSV under CC BY 4.0. The fact sheet lists each value with its source URL and access date.
- derived_metrics.csv (CSV)
- fact_sheet.csv (CSV)
- Child care center license transfer registry: 50 states and DC (CSV)
- What happens to the license on a sale, weighted by child day care employers (CSV)
- The 9 jurisdictions that put a day count on advance notice (CSV)
- How the text treats a stock sale or an entity change (CSV)
- The 12 jurisdictions with the most child day care employers and their transfer rule (CSV)
- How confident the coding is (CSV)
For journalists and researchers
If you cite only a few, cite these
- 42 of 51 jurisdictions: center license does not transfer on a sale.[46][26]
- 82.9 percent of U.S. child day care establishments are in those jurisdictions (CBP 2023).[1]
- Median stated notice: 30 days (range 30 to 90).[26][7]
Most quotable statistics
- 42 of 51 U.S. jurisdictions have text saying a child care center license does not transfer to a buyer (SMBB registry, 2026-11-02).[46][26]
- 82.9 percent of U.S. child day care establishments operate where the license stays with the seller (CBP 2023).[1]
- Only 9 jurisdictions put a day count on advance notice of a daycare sale; the median is 30 days.[26][7]
- Delaware and Minnesota require 90 days' notice before a child care change of ownership, the longest stated period.[10][26]
- Washington is the only state with a rule-based test for transferring a child care license to a buyer.[49]
- Pennsylvania says a stock transfer is not a change of ownership for a child care certificate of compliance.[41]
Press summary
A new registry from Sell My Business Broker finds that a child care center license almost never passes to a buyer. Coding statutes, rules and agency forms for the 50 states and DC as of 2026-11-02, the registry finds 42 jurisdictions where the license does not transfer, 2 (Washington and Alaska) where it can transfer with agency approval, and 7 where no answer was found. Joined to Census County Business Patterns, the no-transfer jurisdictions hold 68,138 of 82,162 child day care establishments, or 82.9 percent. Only 9 jurisdictions state a notice period in days, with a median of 30 days and Delaware and Minnesota the longest at 90. Share sales are treated differently: California, DC, Louisiana, Minnesota and Mississippi can require relicensing, while Pennsylvania says a stock transfer is not a change of ownership. Every row links the official text and a date checked. The report is not legal advice.
Suggested headlines
- 42 jurisdictions rule out child care license transfers on a sale
- Eight in ten daycare employers operate where the license stays with the seller
- Washington is the only state with a test for passing a daycare license to a buyer
- Delaware and Minnesota ask for 90 days' notice before a child care center changes hands
- Selling the shares does not dodge a new daycare license in five jurisdictions
How to cite this report
Sell My Business Broker. (2026). Can a Child Care License Transfer to a New Owner? State-by-State Rules for Selling a Daycare (2026). Retrieved from https://sellmybusinessbroker.com/research/child-care-license-transfer-by-state/
Reuse license
Data and tables are licensed CC BY 4.0. Attribution: “Source: Sell My Business Broker, Can a Child Care License Transfer to a New Owner? State-by-State Rules for Selling a Daycare (2026)” with a link to this page.
Reproduce this analysis
Every figure comes from the files below. The scripts that pulled and computed them are kept with the report and can be re-run.
| Dataset | Publisher | Source | Query or filter | Rows used | Retrieved |
|---|---|---|---|---|---|
| County Business Patterns 2023, state file | U.S. Census Bureau | File or endpoint | naics == '624410' and lfo == '-' ; fipstate in 50 states + DC (scripts/cbp_624410.py) | 51 state rows; 82,162 establishments; 1,045,052 employees | 2026-11-02 |
| State child care center licensing texts (statutes, rules, agency forms) | State legislatures and licensing agencies (see sources) | File or endpoint | One or more official texts per jurisdiction on license transfer and change of ownership; coded in scripts/registry_rows.py; saved under raw/ | 51 jurisdictions; 44 with a transferability answer; 7 not found | 2026-11-02 |
Data quality and exclusions
- CBP rows filtered to NAICS 624410 and lfo '-' (all legal forms) to avoid double counting the legal-form breakdown rows; 51 state rows kept.
- CBP employment is noise-infused (flags G and H); no cells were suppressed for NAICS 624410 at the state level.
- Four jurisdictions (Hawaii, Montana, New York, Utah) stay 'not found': their opened texts are silent or the rule text could not be retrieved without bypassing bot protection or a script-only page; South Dakota is silent; see excluded.md.
- A second retrieval pass on 2026-11-02 coded 13 jurisdictions that the first pass left as not found (AR, CO, DE, IN, KS, LA, MI, MS, OR, RI, TN, VT, WY).
- Hawaii's center rule is a scanned PDF; pages 1 to 32 were read by OCR (tesseract) and searched for transfer and ownership wording.
- Four registry rows (OK, MD, NE, WI) rest on agency forms or guides rather than rule text and are marked interpretation needed.
- Two search hits were discarded as the wrong license type: a Kansas rule for a different facility type and a Rhode Island statute for child placing agencies.
- An Idaho rule chapter for a different program (IDAPA 16.06.02) was fetched by mistake and replaced with the daycare rule IDAPA 16.06.03.
Methodology
Scope. One row per state plus DC for the child care center license. Family child care homes, school-age-only programs and subsidy contracts are excluded. Where the center rule was silent we read the licensing statute, and where neither was available we used an official agency form or guide and marked the row interpretation needed.
Sources. Every row rests on official text saved in raw/: state legislature or administrative code sites, agency rule manuals and agency forms. Where an official site blocked automated access or timed out, we used an Internet Archive copy of the same official page and labelled it (file names start with ARCHIVE_). No law-firm or broker summaries were used as evidence. All text was read on 2026-11-02.
Coding. transferable = no when the text says the license is not transferable, ends, is void or revoked on a change of ownership, or must be replaced by a new license; yes with approval when the text allows a transfer subject to agency approval; not found otherwise. Buyer must apply or be licensed before operating = yes where the text requires the buyer to apply or be approved before taking over, bars operation before the new license, or ends the seller's license on the sale. Notice days counts only advance notice with a stated number. Stock or entity sale = yes when a share or ownership-interest sale is a change of ownership; no when the text says it is not; report only when an entity or governance change carries a notice duty but no relicensing.
Conflicts. Nebraska's agency instructions say a change of ownership terminates the license, while Neb. Rev. Stat. 71-1911(6) says the department may amend a license on a change of ownership; we coded the agency's current practice and marked the row interpretation needed. Ohio's rule ends continuous licensure when the owner changes without stating the buyer's timing; coded no, interpretation needed.
Derived metrics. Counts and shares come from scripts/build_data.py using tables/registry.csv and the Census County Business Patterns 2023 state file (NAICS 624410, all legal forms of organization). Establishment shares divide summed state establishments by the 51-jurisdiction total of 82,162.
Limitations. CBP covers employer establishments only and includes some employer-run home programs; licensed-center counts by state are not published in one consistent federal file. Seven jurisdictions have no coded answer. Rules change often; recheck before relying on any row.
Update schedule. The registry is rechecked every six months and after each state rulemaking round; last checked 2026-11-02. Owners comparing brokers can use the broker match form.
This report presents published data with its limitations. It is not legal, financial or investment advice.
Sources, ranked by quality
Tier 1: primary and official sources (56)
- [1] U.S. Census Bureau. County Business Patterns 2023, state file (cbp23st.zip), NAICS 624410. 2023, released 2025-06-26. Accessed 2026-11-02.
- [2] U.S. Census Bureau. County Business Patterns: 2023 datasets page. Published 2025-06-26. Accessed 2026-11-02.
- [3] Alabama Department of Human Resources. Alabama: Ala. Admin. Code r. 660-5-26-.02(1)(d), (5)(d); r. 660-5-26-.08(2)(a)1. Text as read 2026-11-02 (revised 2021-09-13). Accessed 2026-11-02.
- [4] Alaska Department of Health, Child Care Program Office. Alaska: AS 47.32.080(b); 7 AAC 57.240(a)(2)(A). Text as read 2026-11-02. Accessed 2026-11-02.
- [5] Arizona Department of Health Services, Bureau of Child Care Licensing. Arizona: A.R.S. 36-882(N), (M); 36-893(C). Text as read 2026-11-02. Accessed 2026-11-02.
- [6] Arkansas Department of Human Services, Division of Child Care and Early Childhood Education. Arkansas: Ark. DHS Minimum Licensing Requirements for Child Care Centers (PUB-002, rev. 12/01/2020), 103.5, 103.11. Text as read 2026-11-02 (revised 2020-12-01). Accessed 2026-11-02.
- [7] California Department of Social Services, Community Care Licensing Division. California: Cal. Code Regs. tit. 22, 101167; Health and Safety Code 1597.14, 1596.858 (as reproduced in the CDSS manual). Text as read 2026-11-02 (revised 1998-11-01). Accessed 2026-11-02.
- [8] Colorado Department of Early Childhood, Division of Early Learning, Licensing, and Administration. Colorado: 8 CCR 1402-1, 2.106(A)(1); 2.105(A). Text as read 2026-11-02 (revised 2026-09-14). Accessed 2026-11-02.
- [9] Connecticut Office of Early Childhood. Connecticut: Conn. Gen. Stat. 19a-80(b)(1). Text as read 2026-11-02 (revised 2018-07-01). Accessed 2026-11-02.
- [10] Delaware Department of Education, Office of Child Care Licensing. Delaware: 14 DE Admin. Code 933, 6.1, 6.3, 14.1, 14.1.1, 14.1.2. Text as read 2026-11-02 (revised 2020-09-01). Accessed 2026-11-02.
- [11] Office of the State Superintendent of Education, Division of Early Learning. District of Columbia: D.C. Code 7-2034(d). Text as read 2026-11-02. Accessed 2026-11-02.
- [12] Florida Department of Children and Families. Florida: Fla. Stat. 402.308(2). Text as read 2026-11-02 (revised 2026 Florida Statutes). Accessed 2026-11-02.
- [13] Georgia Department of Early Care and Learning (DECAL). Georgia: Ga. Comp. R. & Regs. 591-1-1-.16(d), (f), (i). Text as read 2026-11-02. Accessed 2026-11-02.
- [14] Hawaii Department of Human Services. Hawaii: HAR 17-892.2 (no transfer or ownership clause found). Text as read 2026-11-02. Accessed 2026-11-02.
- [15] Idaho Department of Health and Welfare, Daycare Licensing. Idaho: IDAPA 16.06.03.150.03, .04. Text as read 2026-11-02 (revised 2024-07-01). Accessed 2026-11-02.
- [16] Illinois Department of Children and Family Services (day care licensing). Illinois: 89 Ill. Adm. Code 407.50(e)(3); 407.60(b), (h); 407.70(c). Text as read 2026-11-02 (revised 2019-01-01). Accessed 2026-11-02.
- [17] Indiana Family and Social Services Administration, Office of Early Childhood and Out-of-School Learning. Indiana: 470 IAC 3-4.7-3(a); 3-4.7-4(6); 3-4.7-5(b). Text as read 2026-11-02 (revised 2013 readoption). Accessed 2026-11-02.
- [18] Iowa Department of Health and Human Services. Iowa: Iowa Admin. Code r. 441-109.2(2)(c). Text as read 2026-11-02 (revised 2026-09-01). Accessed 2026-11-02.
- [20] Kentucky Cabinet for Health and Family Services, Office of Inspector General. Kentucky: 922 KAR 2:090 Section 4(5), (6); Section 13(4)(a). Text as read 2026-11-02 (revised 2025-02-13). Accessed 2026-11-02.
- [21] Louisiana Department of Education, Licensing Division (BESE Bulletin 137). Louisiana: LAC 28:CLXI.903 (Bulletin 137). Text as read 2026-11-02 (revised 2024-07 (LR 50:967)). Accessed 2026-11-02.
- [22] Maine Department of Health and Human Services, Office of Child and Family Services. Maine: 10-148 C.M.R. ch. 32, Section 2 (licensing) and Section 6(F) (other notifications). Text as read 2026-11-02 (revised 2021-09-27). Accessed 2026-11-02.
- [23] Maryland State Department of Education, Division of Early Childhood, Office of Child Care. Maryland: MSDE Office of Child Care, Change of Licensee/Letter Holder of Child Care Centers, Resource Guide 2015. Text as read 2026-11-02 (revised 2015). Accessed 2026-11-02.
- [24] Massachusetts Department of Early Education and Care. Massachusetts: 606 CMR 7.04 (Notification of Change of Ownership). Text as read 2026-11-02. Accessed 2026-11-02.
- [25] Michigan Department of Lifelong Education, Advancement, and Potential, Child Care Licensing Bureau. Michigan: MCL 722.118c. Text as read 2026-11-02 (revised 2018-03-28). Accessed 2026-11-02.
- [26] Minnesota Department of Children, Youth, and Families. Minnesota: Minn. Stat. 142B.11, subds. 1 to 3. Text as read 2026-11-02 (revised 2024). Accessed 2026-11-02.
- [27] Mississippi State Department of Health, Child Care Facilities Licensure. Mississippi: Miss. Admin. Code 15-11-55, Rule 1.2.8. Text as read 2026-11-02. Accessed 2026-11-02.
- [28] Missouri Department of Elementary and Secondary Education, Office of Childhood. Missouri: 5 CSR 25-500.042(14), (17)(C); RSMo 210.221.2(5). Text as read 2026-11-02 (revised 2022-05-30). Accessed 2026-11-02.
- [29] Montana Department of Public Health and Human Services, Child Care Licensing. Montana: MCA 52-2-721, 52-2-722 (no transfer clause); ARM 37.95.108 (no transfer clause). Text as read 2026-11-02. Accessed 2026-11-02.
- [30] Nebraska Department of Health and Human Services, Child Care Licensing. Nebraska: DHHS instructions, Change of Ownership of an Existing Child Care Program; Neb. Rev. Stat. 71-1911(6). Text as read 2026-11-02. Accessed 2026-11-02.
- [31] Nevada Division of Social Services, Child Care Licensing. Nevada: NAC 432A.210(3); NAC 432A.240(1). Text as read 2026-11-02 (revised 2014-06-23). Accessed 2026-11-02.
- [32] New Hampshire Department of Health and Human Services, Child Care Licensing Unit. New Hampshire: RSA 170-E:8, I. Text as read 2026-11-02. Accessed 2026-11-02.
- [33] New Jersey Department of Children and Families, Office of Licensing. New Jersey: N.J.A.C. 3A:52-2.3(a). Text as read 2026-11-02 (revised 2023-12-20). Accessed 2026-11-02.
- [34] New Mexico Early Childhood Education and Care Department. New Mexico: 8.16.2.11(D), (E) NMAC. Text as read 2026-11-02 (revised 2022-01-01). Accessed 2026-11-02.
- [36] North Carolina Division of Child Development and Early Education. North Carolina: 10A NCAC 09 .0204(a). Text as read 2026-11-02 (revised 2017-10-01). Accessed 2026-11-02.
- [37] North Dakota Department of Health and Human Services. North Dakota: N.D. Admin. Code 75-03-10-07(2), (3); 75-03-10-09(3). Text as read 2026-11-02 (revised 2024-04-01). Accessed 2026-11-02.
- [38] Ohio Department of Children and Youth. Ohio: Ohio Adm. Code 5180:2-12-02(E)(3); 5180:2-12-05(K)(5). Text as read 2026-11-02 (revised 2021-10-29). Accessed 2026-11-02.
- [39] Oklahoma Human Services, Child Care Services. Oklahoma: OKDHS Form 07LC091E, Change of Ownership (rev. 2026-04-01). Text as read 2026-11-02 (revised 2026-04-01). Accessed 2026-11-02.
- [41] Pennsylvania Department of Human Services, Office of Child Development and Early Learning. Pennsylvania: 55 Pa. Code 20.57; 20.58(a), (b); 3270.11(a). Text as read 2026-11-02. Accessed 2026-11-02.
- [42] Rhode Island Department of Human Services, Child Care Licensing. Rhode Island: 218-RICR-70-00-1, 1.7, 1.13(A)(1)(c). Text as read 2026-11-02. Accessed 2026-11-02.
- [43] South Carolina Department of Social Services, Division of Early Care and Education. South Carolina: S.C. Code Regs. 114-502(B)(1), (E)(1)(a). Text as read 2026-11-02 (revised 2018-06-22). Accessed 2026-11-02.
- [44] South Dakota Department of Social Services, Child Care Services. South Dakota: S.D. Admin. R. 67:42:17:06; SDCL ch. 26-6 (no transfer provision found). Text as read 2026-11-02 (revised 2023-07-03). Accessed 2026-11-02.
- [45] Tennessee Department of Human Services, Child Care Licensing. Tennessee: Tenn. Comp. R. & Regs. 1240-04-01-.04(1)(d); 1240-04-01-.03(2)(a)7. Text as read 2026-11-02 (revised 2025-11-20). Accessed 2026-11-02.
- [46] Texas Health and Human Services Commission, Child Care Regulation. Texas: Tex. Hum. Res. Code 42.048(e); 42.051(a)(3). Text as read 2026-11-02 (revised 2021-09-01). Accessed 2026-11-02.
- [47] Vermont Department for Children and Families, Child Development Division. Vermont: Vt. Licensing Regulations for Center Based Child Care and Preschool Programs 2.3.2.4, 2.3.5.1. Text as read 2026-11-02 (revised 2022-04-17). Accessed 2026-11-02.
- [48] Virginia Department of Education, Office of Child Care Health and Safety. Virginia: 8VAC20-821-30(A); 8VAC20-821-250(B). Text as read 2026-11-02 (revised 2026-02-01). Accessed 2026-11-02.
- [49] Washington Department of Children, Youth, and Families. Washington: RCW 43.216.305(1); WAC 110-300-0011; WAC 110-300-0400(1). Text as read 2026-11-02 (revised 2020-11-08). Accessed 2026-11-02.
- [50] West Virginia Department of Human Services, Bureau for Social Services, Division of Early Care and Education. West Virginia: W. Va. Code R. 78-1-4.1.c, 4.1.e (as reproduced in the agency's 78CSR1 compliance checklist, 2023 to 2028). Text as read 2026-11-02 (revised 2023). Accessed 2026-11-02.
- [51] Wisconsin Department of Children and Families. Wisconsin: DCF guide, Buying or Selling a Regulated Child Care Facility (updated July 2024); Wis. Admin. Code DCF 251.04, 251.11 (no transfer clause found). Text as read 2026-11-02 (revised 2024-07). Accessed 2026-11-02.
- [52] Wyoming Department of Family Services, Child Care Licensing. Wyoming: Wyo. DFS Child Care Licensing Rules ch. 2, secs. 2(b), 6(c), 6(f). Text as read 2026-11-02 (revised 2026-04). Accessed 2026-11-02.
- [53] Missouri Revisor of Statutes. Missouri: RSMo 210.221. Text as read 2026-11-02. Accessed 2026-11-02.
- [54] Arizona State Legislature. Arizona: A.R.S. 36-893, Legal action or sale; effect on licensure. Text as read 2026-11-02. Accessed 2026-11-02.
- [55] Washington State Legislature. Washington: RCW 43.216.305. Text as read 2026-11-02. Accessed 2026-11-02.
- [56] Nebraska Legislature. Nebraska: Neb. Rev. Stat. 71-1911 (Internet Archive copy, 2025-05-22). Capture 2025-05-22. Accessed 2026-11-02.
- [57] Kansas Office of Revisor of Statutes. Kansas: K.S.A. 65-504 and 65-505 (opened; no transfer clause). Text as read 2026-11-02. Accessed 2026-11-02.
- [58] New York State Senate. New York: Social Services Law 390 (Internet Archive copy, 2025-07-11; no transfer clause). Capture 2025-07-11. Accessed 2026-11-02.
- [59] Oregon State Legislature. Oregon: ORS chapter 329A (Internet Archive copy, 2026-05-04; no transfer clause). Capture 2026-05-04. Accessed 2026-11-02.