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Should I Start a Daycare in Chicago? (2026 Viability Score)

Daycare viability in Chicago, IL — 67/100 (Good Fit). Scores four factors: startup cost, market size, business climate, and labor taxes.

No signup No tracking Last updated March 2026
Data current as of March 2026 Sources: SBA, BLS, Secretary of State filings, COLI data
67 / 100
Good Fit

Chicago is a good fit for a daycare in 2026. The city scores well on multiple factors. First-year costs run approximately $143,166 — $54,570 upfront plus $7,383/month — adjusted for Chicago's cost-of-living index of 107.0 (7% above the US average).

Score Breakdown

16/25
Entry Cost
First-year startup cost adjusted for COL
$143,166 year one
15/25
Market Size
Population × spending power
0 residents
11/25
Business Climate
LLC fees + state income tax
$150 LLC filing fee
25/25
Labor Costs
SUTA + workers' comp rates
SUTA 0.0275% · WC 0.0119%

Cost Snapshot for Chicago

Item Amount
One-time startup costs $54,570
Monthly operating costs $7,383/mo
First-year total $143,166
LLC filing fee (IL) $150
Employer SUTA rate (IL) 0.0275%
Workers' comp rate (IL) 0.0119%
Cost-of-living index 107.0 (US avg = 100)

All costs adjusted for Chicago's cost-of-living index. National averages used for worker cost rates.

How Chicago Compares

City Score
Chicago, IL (this city) 67
Houston, TX 67
San Francisco, CA 68
Seattle, WA 65

Go Deeper

Can I Afford It?
Enter your savings and financing to see your funding gap for a daycare in Chicago.
Profitability Calculator
Model monthly revenue, margins, and break-even for a daycare in Chicago.
Full Cost Breakdown
Line-by-line startup cost breakdown for a daycare in Chicago.
Form an LLC in IL
Step-by-step guide to registering your daycare as an LLC in IL.

How the Viability Score Works

The score combines four data-driven dimensions, each worth up to 25 points. It measures conditions in Chicago, not your personal finances — a low score means the environment is harder, not that the business can't succeed.

1
Entry Cost (0–25)
First-year startup cost adjusted for Chicago's cost-of-living index. Lower cost markets score higher.
2
Market Size (0–25)
City population scaled by cost-of-living index (a proxy for consumer spending power). Larger, wealthier markets score higher.
3
Business Climate (0–25)
LLC filing fee, annual report fees, and whether the state has a personal income tax. Lower fees and no income tax score higher.
4
Labor Costs (0–25)
State SUTA (unemployment tax) rate and workers' compensation rate. Lower payroll tax burden scores higher.

Data sources: SBA.gov (LLC fees), BLS QCEW (SUTA rates), NCCI (workers' comp), COLI (cost-of-living). Updated 2026.

Estimates only. These results are based on publicly available data and standard formulas. Actual costs may vary based on your specific circumstances. This calculator does not constitute financial, tax, or legal advice. Consult a qualified professional for advice on your situation.

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