How to Start in Canada

How to Start a Home Daycare in Alberta

Alberta's two legal paths for home child care: agency-approved day homes or unlicensed private care. Child limits, agency requirements, funding.

Written October 18, 2026 · Edited November 10, 2026 · 12 min read

Applies in: Alberta

The two legal paths

Alberta's Early Learning and Child Care Act sets up two ways to run child care from your home, and the dividing line is simpler than Ontario's: an agency contract, not a licence in your own name.

Approved family day home. You contract with a licensed family day home agency — the agency holds the provincial licence and a contract with the Ministry of Education and Childcare, and you deliver care in your home under its standards and monitoring. On both paths the child limit is 6 children ages 0 to 12 at one time, not counting your own children. The age caps are stricter: no more than 3 children 36 months or younger and no more than 2 children 24 months or younger, and your own children do count toward those two caps, per the Family Day Home Standards Manual. Approved homes get agency consultants who visit regularly and help with programming — plus access to the province's Affordability Grant.

Unlicensed private care. You operate on your own with no agency involved. Same limit: 6 children ages 0 to 12, not including your own. The government does not monitor unlicensed providers, but it investigates complaints — exceeding 6 children or creating an imminent safety risk can trigger a stop order enforced against you, and parents are notified. Unlicensed providers' families do not qualify for funding supports.

Pick your path before doing anything else. The approved path means paperwork, inspections, and agency fees — but it is the only path with government funding behind it, which makes filling your spaces far easier.

Step 1: Decide which path fits

Go unlicensed if you want the simplest start: no application, no agency file, no inspections. You still have legal duties (Step 3), and many providers run full businesses this way — but you fill every space on your own reputation, and families pay the full fee out of pocket.

Go the agency route if you want the credibility of the approved decal, regular consultant support, and families whose fees are reduced by the Affordability Grant. The flat parent fees — $326.25 a month for full-time, $230 for part-time — make approved spaces very easy to fill, because families pay the same low rate regardless of what the grant tops up behind the scenes.

Step 2: Qualify with an agency (approved path only)

Start by finding licensed family day home agencies serving your area: use the province's Childcare Search tool (select 'Family Day Homes' as the program type), browse the published agency list, or call Childcare Connect at 1-844-644-5165. Agencies hold contracts with the Ministry of Education and Childcare for their local areas, and requirements vary somewhat, but the government sets the baseline documents you must provide:

  • Proof you are at least 18
  • Current first aid certification (child/infant CPR expected)
  • Criminal record check with vulnerable sector search for you and every adult 18 or older living in the home or regularly present during operating hours — plus a disclosure statement for anyone under 18 living there
  • 3 satisfactory personal references from non-relatives
  • Physician's note stating you are mentally and physically able to care for children
  • Level 1 Early Childhood Educator certification at minimum — if you are not yet certified, you have 6 months from your approval date to complete it

Once approved, an agency consultant supports your programming, meal planning, and toy and equipment choices, and the agency monitors your home on a regular schedule. Agencies may also set their own bars: landlord permission in writing if you rent, and sometimes a Child Intervention Record Check.

One cost note from the agency contract side: agencies may retain up to $550 per active educator per month from the Affordability Grant payment to cover their program fees, per the 2026/27 funding model factsheet — the monitoring, administration, and support work the standards require them to do. Ask any agency exactly what its fees cover before you sign.

Step 3: Handle the legal duties (both paths)

Even unlicensed providers have obligations, and the unlicensed path is monitored by complaint, not by schedule:

  1. Stay within 6 children. More than 6 children ages 0 to 12 (not counting your own) on the unlicensed path can trigger a government stop order and administrative penalties. Stop orders are published and parents are notified.
  2. Run a safe environment. The government can investigate any complaint suggesting an imminent threat to the health, safety, or welfare of children in your care — licence or no licence.
  3. Keep records. The government's recommended-practices checklist for unlicensed providers covers the basics: each child's name and date of birth, a completed care agreement, parent and emergency contact numbers, daily attendance with arrival and departure times initialled by parents, written consent for any health care, and allergy and immunization information.

Beyond the Act, set up the business properly:

  1. Register your business name with an Alberta registry if you operate under any name other than your own personal name.
  2. Get a CRA business number (free) and keep a separate bank account for the daycare. As a self-employed provider you owe income tax and CPP on net earnings — set aside a portion of every payment.
  3. Check your municipality's home-business rules. Calgary, for example, requires a municipal business licence for private home-based child care to 6 or fewer children, while agency-approved providers operate under the provincial agency licence instead: the city frames it as either the municipal licence or the provincial licence, not both. Your city may differ, so run its questionnaire before you advertise.

Step 4: Get the home ready

Walk through your home the way an agency consultant would, even if you are going unlicensed:

  • Secure the hazards: outlet covers, stair gates, locked cabinets for cleaning products and medication, covered electrical panels
  • Set up defined zones for play, meals, naps, and diaper changes, with enough floor space for up to 6 children
  • Check your outdoor space: fenced or directly supervised, with shade and no accessible standing water
  • Prepare an emergency evacuation plan covering every floor, and post emergency numbers and allergy/medical info where you can see them

Take first aid and infant/child CPR even if no agency requires it of you. On the unlicensed path it is the cheapest credibility signal you can buy, and parents ask about it first.

Step 5: Write your policies and find families

Put every agreement in writing before the first day. A solid parent contract covers: hours and late pickup fees, rate and payment schedule, sick-child policy, statutory holidays and your vacation weeks, notice period for withdrawal, and what happens when you are ill. Verbal agreements are where daycare disputes start.

For finding families, approved providers get enrolment support from their agency and the pull of the Affordability Grant's flat parent fees. Unlicensed providers rely on word of mouth, local parent Facebook groups, and community boards. Describe exactly what you are: "private home child care, 6 spaces, first aid certified" is honest and legal.

What to charge, and what it costs

Approved educators do not set parent fees — the grant sets them. Families with children up to kindergarten age pay a flat $326.25 per month for full-time care (100+ hours) or $230 per month for part-time care (50-99 hours), per the Affordability Grant Funding Guide. The Affordability Grant makes up the difference to the agency/educator. Part-time care under 50 hours a month is not eligible for funding, and you can charge supplemental fees for optional services in line with your agency's policies. The old Alberta Child Care Subsidy continues only for school-age children.

Unlicensed providers set their own rates. Families pay the full fee with no grant behind it, so research what private providers in your city actually charge before you set your number.

Budget $2,000 to $5,000 to launch. The cost categories are the same as other provinces: home safety upgrades ($200-$800), child-sized furniture and bedding ($400-$800), toys and learning materials ($500-$1,000), first aid and CPR ($100-$150), criminal record and vulnerable sector checks (roughly $25-$50 per adult). Monthly running costs land around $300 to $600.

The numbers worth knowing

  • Both paths: 6 children ages 0 to 12 max, not counting your own children
  • Age caps (Standards Manual Standard 6): no more than 3 children 36 months or younger and no more than 2 children 24 months or younger, with your own children counted toward both caps; the 6 child limit itself does not count your own children
  • Affordability Grant flat parent fees: $326.25/month full-time (100+ hours), $230/month part-time (50-99 hours), children up to kindergarten age
  • Agency program fees retained from the grant: capped at $550 per active educator per month
  • Level 1 ECE certification: required on the approved path, 6 months from approval to complete it if not yet certified
  • ECE Workforce Supports: up to $4,387.50 per eligible educator for professional development and release time

Related guides

Questions people ask

Do I need a licence to run a home daycare in Alberta?

Not necessarily. Alberta allows two legal paths: an agency-approved family day home, where you contract with a licensed family day home agency, or unlicensed private care. On both paths you may care for up to 6 children ages 0 to 12, not counting your own children. The licensed path adds agency oversight, regular monitoring visits, and access to the province's Affordability Grant.

How many children can an unlicensed provider care for in Alberta?

A maximum of 6 children ages 0 to 12 at one time, not including your own children. The government does not monitor unlicensed providers, but it does investigate complaints — caring for more than 6 children (not counting your own) or creating an imminent safety risk can trigger a stop order, and administrative penalties can follow. Families using unlicensed care do not qualify for government funding supports.

What is an approved family day home educator?

A provider who contracts with a licensed family day home agency. The agency holds the provincial licence and a contract with the Ministry of Education and Childcare; you deliver the care in your home under the agency's oversight. To be approved you need to be at least 18, hold (or be working toward) a Level 1 Early Childhood Educator certificate, have current first aid, pass criminal record and vulnerable sector checks, provide three non-relative references, and submit a physician's note confirming you can care for children.

Do I need Early Childhood Educator certification to start?

On the approved path, you need at least a Level 1 Early Childhood Educator certificate — but if you are not yet certified, you have 6 months from your approval date to complete it, so you can start the application first. Some agencies prefer applicants who already hold Level 3, but Level 1 is the government minimum. On the unlicensed path there is no certification requirement.

What are the child ratios for an Alberta family day home?

The provincial rule for both paths is no more than 6 children ages 0 to 12 at one time, not counting your own children. The Family Day Home Standards Manual adds age caps that do count your own children: no more than 3 children 36 months or younger, and no more than 2 children 24 months or younger. Agencies may request time limited exemptions to those age caps. Check the ratio rules in your specific agency contract before you take on families.

What funding is available for Alberta family day home educators?

Approved educators work under the province's Affordability Grant: families with children up to kindergarten age pay a flat parent fee of $326.25 per month for full-time care (100+ hours) or $230 per month for part-time care (50-99 hours), and the grant covers the rest. Agencies may retain up to $550 per active educator per month for program fees under their contract. Educators also benefit from the province's Early Childhood Educator Workforce Supports Program (wage support, and up to $4,387.50 per eligible educator for professional development and release time). New eligibility criteria apply to the professional development funding from April 1, 2026, so check the current funding guide before booking courses. None of this reaches unlicensed providers.

How do I find a licensed family day home agency near me?

Use the province's Childcare Search tool and select 'Family Day Homes' as the program type, browse the published list of licensed family day home agencies, or call Childcare Connect toll-free at 1-844-644-5165. Agencies hold contracts with the Ministry of Education and Childcare for their local area, so start with the agencies serving your community.

Do I charge GST/HST on my daycare fees?

No. Child care services are an exempt supply under the GST/HST rules, so you do not add GST or HST to parent fees — and you cannot claim input tax credits on your daycare purchases, since those only apply to taxable sales. The CRA exemption applies where you provide care and supervision in your home to children 14 and under for periods usually under 24 hours a day. Our GST/HST registration guide covers the $30,000 threshold if you add a taxable side business.

Do I need insurance to run a home daycare in Alberta?

On the approved path, yes. Licensed family day homes are required to carry at least $2 million per occurrence in both homeowner/tenant liability and automobile liability (if you transport children). On the unlicensed path there is no provincial insurance requirement, but a standard home policy may exclude business use — tell your insurer about the daycare before your first child arrives.

Do criminal record checks apply to everyone in my home?

On the approved path, yes — every adult 18 or older living in your home or regularly present during operating hours needs a completed criminal record check including a vulnerable sector search. You must also disclose any prior criminal involvement of anyone under 18 who lives in the home. Some agencies require a Child Intervention Record Check as well. Unlicensed providers are not required to do this, but showing prospective families current checks is standard good practice.

Keep going

Sources

Rules and grant terms are current as of November 2026. Confirm agency-specific requirements with the agency you apply to, and check the grant funding guide before relying on any fee figure.

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