Most small businesses need only one or two licenses to operate in a state. However, because an indoor playground involves children, your business might need multiple state-specific licenses. The licensing requirements for businesses involving children are typically more detailed and specific to protect children from substandard operations. If you do not obtain all of the licenses necessary for your indoor playground, you risk losing your business and possible legal actions from your state.
Basic Licenses
The two basic business licenses you need for an indoor playground are the Doing Business As (DBA) license and a general business license from your state. The DBA allows you to use a name other than your own for your indoor playground. Without the DBA, you can't use an original, made-up business name. DBA licenses typically cost less than $50. A general business license from your state is typically required to register your business so that the state is able to collect taxes from your operations. The cost of a business license depends on the ownership structure of your business but is typically no more than $200 or $300.
Business Specific
Many states require specific licenses for any business operating a child activity center, such as an indoor playground. For example, the city of Chicago requires a Children’s Activities Facility (CAF) license for any business with a play center. The cost of the license at the time of publication was $500. Licensing is dependent on the facility passing an inspection by the city for zoning reasons. Contact your state's small business center or your county clerk for further information about the specific child activity license you need.
Other Licenses
Your state may require other licenses if you offer certain services at your indoor playground. For example, if you want to offer an area for kids to eat or buy food, your state may require a child-care facility food-handling license. Indoor playgrounds that offer daycare areas may need a separate license for taking care of kids. For example, Texas defines a child-care center as a place that provides supervision to children. If the state could argue that you supervise children in your indoor playground, it might be safer to have the additional license.
Considerations
Licenses for any businesses involving children typically involve a criminal background check and other restrictions. For example, at the time of publication, Chicago prohibited any person with a felony in the last 10 years from applying for a CAF license. Check with your state regarding any special restrictions regarding licensing for your indoor playground.
