How to Start a Microschool in Texas: Laws and TEFA Funding

2026年10月20日

For education founders in Texas

To start a microschool in Texas, choose your legal route (private school, homeschool learning community, or accredited private school), confirm with Texas Health and Human Services whether you need a child-care license, form an entity, and plan two years without Texas Education Freedom Account (TEFA) tuition, because approved private schools must be accredited and have run a campus for two school years.

None of the Texas statutes covered here uses the word “microschool”. What decides your small school’s status is a short list of legal facts, set out below from the Texas Education Code, the Human Resources Code and the official TEFA pages as of October 2026. This is not legal advice; the agencies named here are the reliable source for your case. For the general steps (founding families, staffing, a break-even budget), see how to start a microschool.

In this article

Three legal routes for a Texas microschool
Route 1: a private school under Texas law
Route 2: a learning community for homeschooled children
Does a Texas microschool need a child-care license?
Texas Education Freedom Accounts: what founders need to know
Route 3: accreditation and the two-year rule
Forming the entity and a 24-month plan
Starting alone or with an existing school model
Questions and answers

Three legal routes for a Texas microschool

A Texas microschool founder in her forties reviews printed state rules and a budget at a desk beside a bright window (illustrative image) — Before a lease or a curriculum, decide which legal route your Texas microschool is taking. (Illustrative image)

Texas law requires children from age six until their 19th birthday to attend school, unless an exemption applies (Texas Education Code, Section 25.085). The first exemption on the list is a child who “attends a private or parochial school that includes in its course a study of good citizenship” (Section 25.086(a)(1)). The Texas Supreme Court’s ruling in Leeper v. Arlington ISD, as the Texas Education Agency (TEA) describes it, treats children taught at home as exempt to the same extent as private school students.

That gives a founder three practical routes. They differ mainly in who carries the legal duty and which public money families can use.

Route	Who is legally the “school”	State oversight	TEFA money families can use with you
1. Private school (not yet accredited)	Your microschool	TEA states it does not have oversight of private schools	None for tuition until you are an approved private school
2. Learning community for homeschooled children	Each family (the children are homeschooled)	TEA states it does not regulate home schools	Homeschooled children receive up to $2,000 a year; your program can be paid only if it is a preapproved provider
3. Accredited private school	Your microschool	Your accreditor; the Comptroller for TEFA	Private school amount ($10,474 in 2026-27) once approved

Summary of the official sources listed below. Child-care licensing is a separate question for every route.

Route 1: a private school under Texas law

A microschool can operate as a small private school. TEA’s alternative schooling page says that “TEA does not have oversight of private schools in Texas” and that many private schools in Texas are not accredited by any organization.

That freedom has limits:

Good citizenship. The exemption depends on “a study of good citizenship” (Section 25.086(a)(1)). Put it in your written curriculum.
A bona fide program. For home schools, TEA summarises the Leeper ruling as requiring instruction “in a bona fide manner” with a written curriculum covering reading, spelling, grammar, math and good citizenship.
Transfers and credits. TEA works with recognised accreditors so students can transfer to public schools. Its home schooling page says students from home schools should be treated like those from unaccredited private schools, and districts usually assess them for placement or credit.
Other rules still apply. Building, fire, zoning, employment and child-care licensing rules are separate from TEA.

Route 2: a learning community for homeschooled children

Here the children remain homeschooled. Their parents hold the legal responsibility, and your microschool offers classes or a shared learning space on some days. TEA states that it “does not regulate, index, monitor, approve, register, or accredit” home school programmes.

Two points matter. The TEFA amount for a homeschooled child may not exceed $2,000 a school year (Section 29.361(b-1)). And TEFA money goes only to preapproved providers and vendors. For “a private tutor, therapist, or teaching service”, Section 29.358(b)(4) requires that each person who will teach a participating child:

is a current or retired educator from a school accredited by TEA or by an organisation recognised by TEA or the Texas Private School Accreditation Commission (TEPSAC), or holds a relevant licence or accreditation, or teaches or taught at a higher education provider; and
completes a national criminal history record review, and is not on the barred lists named in the statute.

Otherwise, families pay you directly, not from TEFA.

Does a Texas microschool need a child-care license?

Ask this early. Under the Human Resources Code, Section 42.041(a), “No person may operate a child-care facility” without a license. A “day-care center” is defined as a facility caring for seven or more children under 14, away from the operator’s home, for at least two hours a day, three or more days a week (Section 42.002(7)). A small full-day programme can fit that description.

Section 42.041(b) lists exemptions. Those most relevant to schools are:

Exemption in Section 42.041(b)	What it covers, in short
(7)	An educational facility accredited by TEA, the Southern Association of Colleges and Schools, or a TEPSAC member accreditor, operating primarily for educational purposes for prekindergarten and above
(8)	An educational facility for prekindergarten through at least grade two, with no more than one hour of custodial care before or after school, that belongs to an organisation enforcing health, safety, fire and sanitation standards equal to state and local codes
(11)	An educational facility integral to its sponsoring religious organisation, or one with no more than two hours of custodial care a day, offering elementary or secondary grades (or prekindergarten through at least grade three)
(18)	A programme giving direct instruction in a single skill, with conditions on advertising, notices to parents and background checks

Read the full text before relying on an exemption. Texas Health and Human Services Child Care Regulation (CCR) publishes Form 2820, “Educational Facility Request for Exemption from Child Care Regulation”. Submitting it is not required, but CCR says it speeds up the process; CCR uses it to decide exemption under 26 Texas Administrative Code Section 745.119. Under Section 42.041(e), an exemption does not limit inspections by health or fire officials.

Want to found a school in the United States with a model that already runs?

NIJIN Academy is an alternative school in Japan for children who do not fit conventional school, opened in September 2023. Children join through a metaverse campus, about 100 live online classes a month and 52 physical classrooms across Japan. NIJIN is looking for one Country Head to launch and lead NIJIN Academy US as business head and principal. The starting state is discussed in the interview.

See the Country Head role in the United States

Texas Education Freedom Accounts: what founders need to know

In 2025 the Texas Legislature passed Senate Bill 2, which created the education savings account program in Texas Education Code Chapter 29, Subchapter J (effective September 1, 2025), with $1 billion in funding according to the program website. The Texas Comptroller of Public Accounts runs it, with Odyssey as the certified educational assistance organization. Families apply; approved schools and vendors are paid from the child’s account.

$10,474per child at an approved private school, 2026-27

Up to $30,000for a child with an IEP on file, 2026-27

Up to $2,000for a homeschooled child, per year

274,000+applications in the first cycle; over 100,000 awards

Figures from educationfreedom.texas.gov, the official TEFA website, as of October 2026. The private school amount is set by law at 85% of the estimated statewide average of state and local funding per student (Section 29.361(a)).

What shapes a founder’s plan:

Timeline. The 2026-27 family application window ran February 4 to March 31, 2026. The site now offers a 2027-28 interest list.
Cash flow. For private school students, 25% of the award is paid on July 1, 2026, 25% on October 1, 2026 and the remaining 50% on February 1, 2027. Plan cash for the gap.
Pricing rules. A provider may not charge a participating child more than its standard amount, and may not rebate or share program money with families (Section 29.365). Account money may not pay a relative of the participant within the third degree (Section 29.359(b)).
Autonomy. Under Section 29.368, the program may not be used to limit a provider’s methods, curriculum or admissions.

Route 3: accreditation and the two-year rule

A teacher works with six children of mixed ages around two joined tables in a small, sunlit converted room in a Texas suburb (illustrative image) — An approved private school must have run a campus for two school years first, so the early years are funded by families and the founder. (Illustrative image)

Under Section 29.358, a private school is approved for TEFA if it meets the requirements below. The program site adds that it must be in Texas (a virtual school needs an office in Texas).

Requirement	What the law says	What it means for a new microschool
Accreditation	By an organisation recognised by TEPSAC or by TEA	Choose an accreditor early and learn its standards and timeline
Assessment	Annual nationally norm-referenced test (or the state assessment) for students in grades 3 to 12	Budget for testing and keep results from the first year
Operating history	Continuously operated a campus for at least two school years before seeking approval	Plan years 1 and 2 without TEFA private school tuition
Staff screening	Proof that staff working with participating children are not identified for misconduct in the state’s reportable conduct search engine (Section 29.358(e))	Build screening into hiring from day one

TEA’s accreditation status page lists the private accrediting entities it recognises, including for the education savings account program: TEPSAC, the International Association for Learner Driven Schools, the Society for Classical Learning and the National Association of Private Schools. Private school applications are accepted on a rolling basis; pre-K and kindergarten providers have separate criteria.

Forming the entity and a 24-month plan

Form a legal entity before you sign a lease or hire. The Texas Secretary of State publishes certificates of formation, including Form 201 (for-profit corporation), Form 202 (nonprofit corporation) and Form 205 (limited liability company). Which fits, and how tuition is taxed, is a question for a Texas accountant or attorney.

Months 1 to 2: choose the route. Private school, homeschool learning community, or a school working towards accreditation. Write the curriculum, including good citizenship.
Months 2 to 3: written answers. Ask CCR whether your hours and ages need a child-care license (Form 2820 if you claim an educational exemption). Check zoning and fire rules for the address.
Months 3 to 4: entity and screening. File with the Secretary of State. Screen every adult who will work with children.
Months 4 to 6: accreditor and assessment. If you want TEFA later, contact an accreditor recognised by TEA or TEPSAC and choose a norm-referenced test.
Months 6 to 24: two full school years. Run on family tuition and keep records of attendance, test results and staff files.
After two school years: apply. Apply to TEFA as a private school and plan for the 25/25/50 payments.

Starting alone or with an existing school model

A microschool director talks with two parents across a small round table in a quiet meeting room in Texas (illustrative image) — In the first two years, a Texas microschool lives on the trust of families who pay before any state funding arrives. (Illustrative image)

The Texas route is long: curriculum, licensing answer, entity, two school years, accreditation, funding application. How you carry it depends on how you start.

How you start	What you get	What you give up
Alone, from zero	Full control of the model	You design and run everything yourself
A franchise	A ready brand and system	You buy into a fixed model under a franchise agreement (see microschool franchise)
Founding a company with an existing school	A running programme, online classes, people to ask	You share decisions and revenue with the other company

NIJIN Academy US is the third kind, not a franchise. You can set up a local company together, for example holding 20% of the shares with NIJIN holding 80%; if you invest, the guide is JPY 1 to 2 million from you and JPY 4 to 8 million from NIJIN. Investment is optional: you can also start on a service contract, even as a side job. Either way, compensation is, as a guide, 10% of revenue (excluding tax), up to JPY 50 million: JPY 100 million of revenue gives JPY 10 million, and JPY 200 million gives JPY 20 million. It is not a promise of income; with no revenue, the formula pays nothing. Anyone you hand part of the work to is paid from your 10%. Teaching experience is not required, and English alone is enough. NIJIN reports more than 1,000 children enrolled since September 2023.

Questions and answers

What are the Texas microschool laws?

The statutes covered here do not use the word “microschool”. A microschool is treated as what it legally is: a private school (Education Code Section 25.086(a)(1)), support for homeschooled children, or, depending on ages and hours, possibly a child-care facility (Human Resources Code Section 42.041). Ask CCR in writing if unsure.

What are the private school requirements in Texas?

TEA states that it does not have oversight of private schools. The attendance exemption requires a course including good citizenship. To receive TEFA tuition, a private school needs recognised accreditation, an annual norm-referenced assessment for grades 3 to 12 and two school years of continuous operation.

Can a new microschool accept Texas Education Freedom Accounts?

Not as a private school in its first two school years, because of the operating-history rule in Section 29.358(b)(2)(C). A teaching service whose staff meet the tests in Section 29.358(b)(4) can apply as a provider, but homeschooled children receive at most $2,000 a year.

How do I start a microschool in Texas without money?

No official source sets a cost, so we do not quote one. A part-time programme for homeschooled children in a shared space needs the least set-up, but still confirm the licensing question and screen every adult. Do not count on TEFA in year one.

Can I start a microschool in Texas as a teacher?

Yes. A current or retired educator from an accredited school meets one of the tests for a TEFA teaching service. If you seek accreditation, ask the accreditor about its staff standards.

Is the NIJIN Academy US role a job or a business?

It is closer to founding a business than taking a microschool job: you build and lead the company and the school, with 10% of revenue as a guide and no guaranteed income. Contract type, location and start date are discussed in the interview.

Found NIJIN Academy in the United States

NIJIN is looking for one founder to launch and lead NIJIN Academy US as business head and principal. Teaching experience is not required, and investment is optional.

See the Country Head role in the United States