As of June 2014, there are no specific laws in Indiana against casual babysitting. However, according to the Indiana government's website, there are laws pertaining to becoming a child care provider, opening a child care center or home or starting a child care ministry.
Child care providers fall into three categories. According to Indiana's government website, the three categories of childcare providers are a licensed child care center, a licensed child care home or an unlicensed registered child care ministry.
A licensed child care center is a nonresidential building where at least one child receives care from a provider while unattended by a parent, legal guardian or custodian. This provider must be receiving compensation and provide care for four hours for 10 consecutive days per year, excluding Saturdays, Sundays and holidays.
A licensed child care home is a residential building in which at least six children, not including children to whom the provider is a parent, guardian or custodian and excluding children over 14 years of age, receive care from the provider. These children must not be attended by a parent, legal guardian or custodian and must be cared for more than four hours for 10 consecutive days per year, excluding Saturdays, Sundays and holidays.
An unlicensed registered child care ministry is a child care provider operated by a church or religious ministry that is a religious organization exempt from federal income taxation under Section 501 of the Internal Revenue Code.
To become any type of child care provider, there is an extensive review and training program that must be attended. This, however, doesn't apply to babysitting.