One of the most important decisions that you will make in the start-up process is choosing how you will structure your childcare business.
In fact, the way that you structure your childcare business will be a determining factor in how you will pay your taxes or if you will pay more or less taxes.
Moreover, your business structure that you choose will help to reduce your personal liability or expose you to being personally liable for business debt or even a lawsuit.
One year into owning a family home childcare business, my license specialist inspired me to change my business structure to protect my personal assets such as my home and other personal assets.
After I changed my business structure, it slightly changed the way that I filed my taxes, however I was relieved of the thought of being personally responsible in the event of a lawsuit. In fact, my name was even removed from the license and the new company name was placed on the license after I changed my business structure.
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According to the Internal Revenue Services, “the most common forms of business are as follows:
- Sole proprietorship
- Partnership
- Corporation
- S corporation
- A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.”
For more information on how to choose a business structure that is right for your Child Care Business, get your copy of the 10 Steps to Starting a Child Care Business Today!
To Your Success,
Shiketa
http://www.childcarebusinessowner.com
It is essential that you run a business with a structured plan of action. It will serve as a guideline for the operation your business. Also, create an organizational chart that displays the hierarchy of teachers, parents, and others involved in running the child care business. This clearly determines where each role falls in the overall structure of the day care center. Primarily, parents are on top of the chart, followed by the board of directors, and so on and so forth.
ReplyDeleteClint Shaff
Thanks for your feedback Clint!
DeleteThank you for this blog. Does anyone know of any good books for how to run a day care, or on how to work with children? I"m working on a day care center in san antonio and would like some comments or ideas. THanks.
ReplyDeleteThanks for visiting my blog Alvin! I have an ebook, 10 steps to starting a Child Care Business http://www.e-junkie.com/shiketamorgan/product/467137.php#10+Steps+To+Starting+up+a+Child+Care+Business
ReplyDeleteThe ebook will give you vital start-up info. Also be sure to follow my blog post at http://www.childcarebusinessowner.com
After a bit of a blogging break, I'm back. It's so lovely to read your news. Your blog is looking beautiful. Kindergarten in Victoria
ReplyDeleteThanks Sophie!
ReplyDeleteHello Shiketa Morgan,
ReplyDeleteI liked your article very much. Hope you write more such fascinating blog posts soon. I have learned new things about childcare business.
Best Regards,
Kunik Goel
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My friend is deciding what she wants to do when she is older. She has always loved babysitting and if there is a child in the room she is always playing with them. I think she would do great at caring for children everyday. I am going to share this article with her because it is very informative. http://childcarerobina.com.au
ReplyDeleteThanks for making the distinctions clear. I knew there was a better way to classify the daycare, but I didn't think there were so many options. In my case, I think I'll call it a small business. That way I can separate the funds completely. | http://www.missbarbarasdaycare.com
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