Daycare providers are responsible for the safety of children, creating some of the highest liability exposure of any small business. Injuries, allergic reactions, and allegations of negligence can result in devastating lawsuits. An LLC is essential to protect your personal assets and is often required to obtain state childcare licensing and insurance coverage. Tempe is home to ~18K businesses and has a population of 180K, making it a thriving market for daycare providers. Forming your LLC in AZ provides personal asset protection and positions your daycare providers business for growth in the Tempe metro area.