How to Start a Child Care Business in Hawaii: Family Child Care Home Registration (3 to 6 Children) vs Center and Group Home Licenses (7 to 12)

If you want to start a child care business in Hawaii, the first decision is not the paperwork. It is how many children you plan to care for and where you will care for them. The Department of Human Services (DHS) Child Care Licensing program sorts providers into separate rule sets under Hawaii Administrative Rules (HAR) Title 17, and the rule set you fall under determines your forms, inspections, and local approvals. Choose the wrong path and you can lose months re-filing.

This guide covers the two most common paths for a home-based or small-facility operator: family child care home registration for 3 to no more than 6 unrelated children, and group child care home or center licensing for 7 to 12 children. It also covers the state business filings and the General Excise Tax (GET) license that apply regardless of which path you choose.

Family Home vs. Group Home vs. Center: Quick Comparison

Setting	Children	Ages	Rule set	Approval
Family child care home	3 to no more than 6, unrelated to the caregiver	Confirm with DHS	HAR 17-891.2	Registration (certificate)
Group child care home	7 to 12	24 months and older	HAR 17-892.2	License
Infant and toddler center	Per center application	6 weeks to 36 months	HAR 17-895.1	License
Before and after school facility	Per facility application	4 years 8 months and older in elementary school	HAR 17-896.1	License

The key distinction: a family child care home is registered, not licensed. Registration is a lighter process, but it is still a formal approval, and you cannot open until you hold the certificate.

What You Need Before You Start

• A chosen setting and capacity. Write down the maximum number of children and the age range you plan to serve. The count and ages drive which rule set applies.
• Written permission. Get it from your landlord, your condo or homeowners association, and your insurer before you file anything. Ask the insurer specifically whether it covers paid child care on the premises.
• County zoning and building code information for your street address, from your county planning department. Hawaii has four counties (Honolulu, Hawaii, Maui and Kauai) and no incorporated cities, so the county is the authority for land use.
• Your legal business name, plus formation documents if you form an entity, and a Hawaii street address for any registered agent.
• Family registration forms: DHS 982 and DHS 983.
• Center or group home forms: DHS 951, a written statement of your operation policies, proof of legal authority to operate at the site, and staff forms.
• Health and background paperwork: a physical exam and tuberculosis (TB) clearance for household members, two reference letters, employment history forms, and child abuse and criminal history checks.
• Budget for filing fees: $50 for an LLC or corporation filing, $50 plus a $1 State Archives fee for a trade name, $20 for the GET license, and $10 for an optional 120-day name reservation. DHS does not list licensing or registration fees on its application pages, so ask your island's Child Care Licensing Unit for those.

Step 1: Pick Your Setting Based on Capacity

Start with the number you need to make the business work, then check whether it fits the family home limit. If you plan on 3 to no more than 6 unrelated children, you are in the family registration track. If you want 7 to 12 children, you need a group child care home license. Do not plan on 6 children and then add a seventh later without first reviewing the change with the Child Care Licensing Unit. Ask the unit how it counts your own children and any other children in the home before you finalize your capacity plan.

If you want to serve infants, toddlers, or school-age children in a separate facility, those fall under their own rule sets (infant and toddler centers under HAR 17-895.1, before and after school facilities under HAR 17-896.1). Confirm the right rule set before you lease space.

Step 2: Clear the Property, Zoning, and Insurance

This step comes before any state paperwork, and it is where many applicants stall. Family homes must meet county zoning and building codes. A center needs county clearance, which typically means either a conditional use permit or a certificate of occupancy, depending on the county and the site. Call your county planning department with your exact address and ask two questions: whether home-based child care is permitted in your zone, and what the building code requires for the number of children you plan to serve.

Then get written permission from your landlord or association. A lease that bans business use or a covenant that restricts home occupations can end your application even if DHS approves your paperwork.

Step 3: Choose Your Business Structure and Register Your Name

You can operate under your own legal name, form a limited liability company (LLC), or form a corporation. Registering an entity or a trade name is a filing, not a license. Hawaii does not issue a general statewide or county business license. Use Hawaii Business Express (HBE) for online filings through the Department of Commerce and Consumer Affairs (DCCA), Business Registration Division (BREG).

• LLC: File Articles of Organization (Form LLC-1) for $50. The name must include Limited Liability Company, L.L.C., or LLC, and cannot be substantially identical to a name already registered. Check availability free through the BREG business name search. An LLC cannot be its own registered agent, and the agent must be physically present in Hawaii. A commercial registered agent files a listing statement for $100.
• Corporation: File Articles of Incorporation (Form DC-1) for $50.
• Trade name: If you will operate as something other than your legal name, register a trade name on Form T-1 for $50 plus a $1 State Archives fee. The registration lasts five years and must be renewed yourself, because the Department does not send renewal notices. Hawaii has no county-level DBA filing.
• Name reservation: You can reserve a name for 120 days for $10.

Annual reports for LLCs and corporations cost $12.50 and are due by the end of the calendar quarter that matches your registration quarter. Registration from January 1 to March 31 is due March 31, April 1 to June 30 is due June 30, July 1 to September 30 is due September 30, and October 1 to December 31 is due December 31. No report is required in the year you register. Hawaii has no franchise tax on LLCs.

BREG states that expedited processing is not available at this time following its July 6, 2026 move to a new registration system, so plan for routine processing. BREG does not publish a standard turnaround time, so file early.

Step 4: Get Your General Excise Tax License

Hawaii has no sales tax. Instead, the General Excise Tax (GET) applies to the business's gross receipts. The state rate is 4.0 percent, plus a 0.5 percent county surcharge, for a combined 4.5 percent on most services. Do not describe GET to parents as a sales tax. Ask the Department of Taxation how the rate applies to your tuition and fees.

The GET license is the one universal state registration, and it costs a one-time $20. Apply on Form BB-1 or through Hawaii Tax Online. Processing is immediate in person, 5 to 7 business days through Hawaii Tax Online, and 4 to 6 weeks by mail. The license stays active until you close, surrender, or lose it. Every license holder must file periodic and annual returns even in a period with no income, so set up a filing calendar on day one.

Step 5: Complete Family Child Care Home Registration

Family registration runs on the DHS 982 and DHS 983 forms. Expect to submit the following for the caregiver and the household members the rules require:

1. Complete the forms. Submit DHS 982 and DHS 983. Get current versions from the DHS Child Care Licensing program, because forms are updated.
2. Health clearance. Each household member needs a physical exam and TB clearance. Schedule these early.
3. References. Provide two reference letters and complete the employment history forms.
4. Background checks. Complete the child abuse and criminal history checks. Confirm exactly which household members must be cleared, because the list can extend beyond the caregiver.
5. Submit and schedule. Once your packet is complete, the licensing staff schedule a home visit.

Step 6: Pass the Home Visit and Correct Deficiencies

During the home visit, a licensing staff member inspects the space you plan to use for care and checks your practices against the rules. If the inspector finds deficiencies, you must correct them before the certificate is issued. Ask the licensing staff what the visit covers before it happens. Ask for the list in writing, correct each item, and document the fix with photos or receipts. Your certificate issues only after the deficiencies are cleared.

Step 7: Apply for a Group Child Care Home or Center License

Group homes and centers follow a different track, using DHS 951 as the core application. Group child care homes (7 to 12 children, ages 24 months and older) fall under HAR 17-892.2. Infant and toddler centers and before and after school facilities have their own rule sets, so confirm which one applies to your program.

Prepare these items:

• DHS 951 and a written statement of your operation policies, covering enrollment, supervision, health, emergency procedures, and parent communication.
• Proof of legal authority to operate at the site, such as a lease or ownership documents, plus written landlord or association permission.
• Staff forms and background checks for every staff member, not just the owner.
• County code clearance, which for a center typically means a conditional use permit or certificate of occupancy. Start this process at the same time as your state application, because county approvals can be the longest step.

As with family registration, DHS does not list licensing fees on its application pages. Ask your island's Child Care Licensing Unit for the current fee schedule before you budget.

Step 8: Plan Your Ongoing Compliance

Once you open, your compliance calendar has several recurring pieces: GET returns, your LLC or corporation annual report if you formed one, and any employer obligations. If you hire employees, you must follow the Prepaid Health Care Act. Confirm your specific obligations with the Department of Labor and Industrial Relations. Keep copies of every filing, approval, and clearance in one binder or folder so an inspector or your accountant can find them quickly.

Tips and Common Mistakes to Avoid

• Do not sign a lease or buy equipment first. Get zoning, landlord, insurer, and DHS answers before you commit money.
• Do not assume your capacity is fixed. Choose the number you plan to serve now and confirm the rule set for that number.
• Do not let health clearances expire in the queue. Schedule the physicals and TB tests once you have the forms, and track the dates.
• Do not skip the county. A certificate from DHS does not replace zoning or building approval.
• Do not expect expedited service. BREG has said expedited processing is not available at this time, so build a realistic opening date.
• Do not forget the GET return. Late or missing returns are easy to avoid with a calendar reminder.
• Do not rely on general advice. Child care rules are detailed and change. Confirm each step with the named agency before you act.

What Results to Expect

A complete, well-prepared application usually moves faster than one that is sent in pieces, though the exact timing depends on DHS workload, the home visit schedule, and how quickly you correct any deficiencies. Operators who finish zoning, landlord, and insurance approvals before filing often find fewer surprises during the home visit. Once you hold a certificate or license, you may be able to begin enrolling children, but confirm that with the Child Care Licensing Unit before you advertise or accept tuition. Results depend on your location, your program, your preparation, and agency timing, and no outcome is guaranteed.

Helpful Official Resources

• Business filings and name search: cca.hawaii.gov/breg/
• Online filing: Hawaii Business Express
• Taxes and GET: tax.hawaii.gov and tax.hawaii.gov/get/
• Business planning help: Hawaii Small Business Development Center
• Federal small business resources for Hawaii: sba.gov/district/hawaii

Disclaimer: This article is informational only. It is not legal, tax, or licensing advice, and it does not create an attorney-client or accountant-client relationship. Requirements, forms, and fees change. Confirm every step with the Department of Human Services Child Care Licensing program, your county, the Department of Taxation, and BREG before you act. If your situation is complex, such as a multi-site operation, a property you do not own, or employees, consult a qualified attorney and a certified public accountant.