You will want to carefully consider the child care legal structure you choose for your business. Will your new company be a sole proprietorship, incorporation, or partnership. There are many advantages and disadvantages to each legal structure.
The most common method for child care centers is to operate as sole proprietors. Setting up a sole proprietorship means that you are the sole owner of the business. You will need to file business and personal tax returns together.
About Insurance – Anyone who operates a day care facility needs to have insurance in case of property damage or injury to children while in your care. Most states have a Child Care Association that can provide you with more information about the type of insurance needed in your state.
To lower your insurance costs and in many cases to comply with insurance requirements you may need to make changes to your center. You may consider making sure you have adequate smoke detectors, fire extinguishers, and play yard fencing. In addition you may want to consider fencing out family pets to comply with insurance company underwriting guidelines.
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