How to Start a Summer Camp Business: Licensing, Staff and Pricing

A summer camp is a small business with an unusual amount of regulation, because you are responsible for other people's children for whole days at a time. The work splits into two parts: the business setup every company needs, and the child-safety setup that camps need on top. Do the second part before you take a single deposit.

What do I need to start a summer camp business?

You need a legal business entity, a federal tax ID, any state or local camp permit your area requires, a suitable site, trained and screened staff, insurance, a price, and a registration process. Here is the order most new camps work through:

Step	What it involves	Who to ask
1. Business structure	Sole proprietorship, LLC or corporation	Your Secretary of State, an accountant or attorney
2. EIN	Free federal tax ID from the IRS	IRS
3. Camp permit or license	Varies by state, county and city	State or local health department, or your state's camp regulator
4. Site	Zoning, fire safety, restrooms, shade, water	City planning office, fire marshal, venue owner
5. Staff	Hiring, background checks, training, ratios	Your state rules, plus American Camp Association standards
6. Insurance	General liability, participant accident, abuse coverage, workers' comp	A licensed commercial insurance agent
7. Pricing	Cost per child at a realistic enrollment	Your own numbers
8. Registration	Online signup, payment, health forms, waivers, policies	Your registration software

Should my summer camp be an LLC or a sole proprietorship?

Most camps should form an LLC or corporation rather than run as a sole proprietorship, because a camp carries real injury risk. The U.S. Small Business Administration says a sole proprietorship does not separate your business and personal liabilities, so you can be held personally liable for the business's debts. It describes sole proprietorships as a fit for low-risk businesses and LLCs as a fit for medium- or higher-risk businesses and for owners with personal assets they want protected.

The SBA also notes the limits of that protection: an LLC or corporation can protect personal property from lawsuits, but insurance fills the gaps. Treat the entity and the insurance as a pair, not alternatives.

A few related steps from the SBA's startup guide:

• Register with your state. Most states register LLCs and corporations through the Secretary of State. The SBA says total registration cost is usually under $300, but fees vary by state and structure.
• Get an EIN. The SBA says it's free and you can get it immediately from the IRS. Don't use sites that charge a fee for it.
• Open a business bank account. Keep camp money separate from personal money from the first deposit.
• Consider nonprofit status only if it fits your mission. Nonprofit corporations file separately with the IRS for tax exemption and can't distribute profits to owners.

Do I need a license to run a summer camp?

It depends on your state, and sometimes your county or city. The American Academy of Pediatrics notes that many states regulate both day camps and overnight camps. Some handle it at the state level; others push it down to local health departments. In California, for example, the American Camp Association's state page says camp permits are issued by local or county health departments, and Los Angeles County requires a permit for day camps.

New York is one example of how detailed this can get. The New York State Department of Health says a program that qualifies as a children's camp must have a permit and follow Subpart 7-2 of the State Sanitary Code. Regulated camps there are inspected twice a year, must have a health director and a written medical plan approved by the local health department, and must check staff and volunteers against the state and national sex offender registries. Other states regulate far less, and some exempt short programs entirely.

Three things decide which rules apply to you:

• Day or overnight. Overnight camps usually face more rules on sleeping quarters, food service and round-the-clock supervision.
• Length and size. Some states define a camp by the number of children or the number of days it runs.
• Where you operate. A camp at a licensed child care center, a school or a park may fall under that facility's rules or permits.

Call your state or local health department before you sign a lease. Ask whether your program counts as a camp, which permit applies, what inspections happen and how long approval takes.

How do I choose a site for a summer camp?

Choose a site that's zoned for your use, safe for children and big enough for your activities in bad weather. The SBA says zoning is usually set at the local level and can restrict or ban some businesses in an area, including home-based ones, so check with your city planning office first.

Many new camps rent rather than buy: schools, churches, community centers, parks and gyms. Venues will usually ask for proof of liability insurance and may require you to name them as an additional insured, so line up insurance before you finalize the rental. Walk the site with a checklist that covers:

• Indoor space for heat, rain and storms
• Restrooms and handwashing for your camper count
• Drinking water and shade
• Secure drop-off and pickup, with a single check-in point
• Fire exits and an emergency evacuation route
• Distance to the nearest hospital and how emergency services reach you

If you plan swimming, the bar goes up sharply. The American Camp Association's accreditation standards treat lifeguards for swimming as a basic expectation for every accredited camp, and your state may set its own lifeguard rules.

What staff-to-camper ratio should a summer camp have?

Follow your state's required ratio first, then use the American Camp Association's ratios as a benchmark. These are ACA's updated ratios as reported by Metro Parent in 2024:

Camper ages	Day camp ratio (staff : campers)	Overnight camp ratio (staff : campers)
5 and younger	1 : 6	1 : 5
6–8	1 : 8	1 : 6
9–14	1 : 10	1 : 8
15–18	1 : 12	1 : 10

Metro Parent tells parents to ask for the counselor-to-camper ratio, not the staff-to-camper ratio, so be ready to say which one you're quoting. Plan extra staff for swimming, field trips and campers who need more support.

How do I hire and screen camp counselors?

Hire for judgment and reliability, and screen everyone who will have access to campers before their first day. ACA guidance reported by Metro Parent says 80% of staff should be at least 18, and an ACA Camping Magazine article notes the ACA recommends any group leader be at least two years older than the group they supervise. Unpaid counselors-in-training aren't staff and shouldn't count toward your ratios, the same article says.

ACA's November 2025 accreditation standards make screening mandatory for paid, volunteer and contracted staff based at camp. New staff get a criminal background check (if 18 or older), at least two reference checks with work history verification, and a personal interview. Returning seasonal staff get a criminal background check every year, year-round staff at least every three years, and all adult staff an annual check of the National Sex Offender Public Website. The standards also require an adult with current first aid and CPR/AED certification on duty whenever campers are present, with wilderness first aid if emergency services are more than 30 minutes away. Your state may require more. For the full screening process, see background checks for youth program staff.

Train staff before campers arrive on safety rules, emergency procedures, behavior management, child abuse prevention and supervision.

What insurance does a summer camp need?

At minimum, a camp needs general liability insurance, and most also carry participant accident coverage and abuse and molestation coverage. The SBA says general liability covers bodily injury, property damage, medical expenses and the cost of defending lawsuits. It also lists workers' compensation, unemployment and disability insurance as required for businesses with employees, and says some states require more.

Ask your agent specifically whether your general liability policy excludes abuse and molestation claims, since many do. The full breakdown is in insurance for kids' activity providers.

How much should I charge for summer camp?

Price from your weekly costs at a realistic enrollment, add a margin, then compare with local camps. Add up staff pay, site rent, insurance, materials, software and marketing for one week, divide by the number of campers you expect to fill rather than your maximum, and add your margin.

Sell by the week, set a minimum enrollment for each week, and write your deposit and refund terms down before registration opens. The full method, with a worked example, is in how to price kids' classes and camps.

Itemized receipts help families pay. IRS Publication 503 says the cost of day camp may be a work-related care expense, even when the camp focuses on one activity like soccer or computers, while overnight camp is not. Families claiming the credit need your name, address and taxpayer ID, so put them on every receipt.

How do I set up registration for a summer camp?

Use online registration that takes payment and collects every form you need in one flow. At signup, collect:

• Camper and guardian details, including authorized pickup people
• A signed health history. ACA's mandatory standards require a current one for each camper, covering allergies and dietary restrictions, current medications, past treatment, a parent's statement that school immunizations are up to date, conditions that need accommodation, and activities to avoid.
• Emergency contacts and permission to treat
• Your policies, including refunds, cancellations, behavior and photo use
• A deposit or full payment, with the balance date stated

Open registration early, put an early-bird deadline on it, and watch which weeks fill first. Weeks that are still thin a month out are your signal to market harder, combine groups or cancel before you've committed staff.

Where do families find new summer camps?

Families search where they plan the rest of their summer, so list your camp where they already look. Families search camps, classes and enrichment programs on Kaleto, providers list their programs there, and AI assistants connected to Kaleto can search those listings. List your program on Kaleto.