Sunday, September 14, 2014

Starting a Family Child Care Business

One of the easiest home businesses you
can start is a family daycare business, where you take care of your
neighbor or friend’s children in your home. States normally require
daycares to be licensed, but some states allow unlicensed family child
care businesses provided they don’t exceed the number of children
allowed.



family child care business


What is a Family Child Care Business?

A family child care business provides care for a small group of
children in the caregiver’s homes. It is often considered as the
smallest type of day care business.


A family child care business is home-based and provided in the home
of the business owner. In comparison, child care centers have its own
separate facility other than the owner’s residence and have more
caregiver staffs to care for groups of children. The Office of Personnel
Management describes child care centers as, “either privately operated
for profit by a chain or individual, or operated by non-profit agencies,
such as churches, public schools, government agencies, or non-profit
vendors.”


Family child care businesses are registered or licensed in most
states — depending on the number of children. Regulations vary from
state to state; but most states require family child care providers to
also undergo criminal background checks, training and be subjected to
regular state inspection.


In Wisconsin, a day care business is classified as a family child
care business if it is taking care of 4-8 children, as compared to a
group child care center which takes care of 9 or more children.


In Virginia, licensing starts when the daycare business has 6 or more
children under its watch. According to the Virginia Department of
Social Services, which governs licensing and regulation of daycares in
the state, “the Code of Virginia mandates the licensure of family day
homes that provide care for six to twelve children (exclusive of the
provider’s own children and any children who reside in the home).”
Therefore, you can operate a family daycare business, without the need
for licensing, in your home for up to 5 children.


Starting a Family Child Care Business

The first step in starting your family childcare business is to
prepare a business plan. Even if you will not be applying for a bank
loan, a business plan helps you to think through your business – what it
needs, who it will benefit, how much it will cost, and what is its
potential. Thinking through the business includes knowing how you will
reach your target market, or even how to approach the neighbor you think
would benefit from your services.


For detailed information on what you need to start a family child care business, read the article What Do You Need to Open a Daycare Business?


It is also important that you learn the tax rules affecting daycare
centers, especially if you are going to open one from your home. Read
the IRS instructions for child care businesses. Read IRS Publication 587, Business Use of Your Home (including Use by Daycare Providers).



As for the licenses and requirements in your state, check out our state by state listing of contacts for licensing and regulations governing child care businesses


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