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hi I am 23 years old, I have 2 kids of my own 3 and 4 in july. I currently just finished my psw course and have trouble finding a job so I figured id kill 2 birds with one stone by opening a daycare so I can stay home with my kids. I have a nice house finished basement where all my kids toys n what not are, also a far size yard filled with kids stuff..so a daycare would be perfect I just don't know where to start...PLEASE HELP!!
I want to do this as legal as possible I don't want to just start having kids at my house I have forms for parents to fill out already from childcarechoices.ca I need to know where I go to register my business? whats taxable? whats deductible?....is that all I need to do? I checked out prices im going to charge $30 a kid per day everywhere else around me is charging $30-$45 so I think mine is reasonable
you need a contract and a policy book, insurance, you can register a business name online ...it costs $60 for 5 years, if your going to be traveling in your vehicle with the kids then you need a ryder on your car insurance, first aid cpr police check, high chairs/booster seats, play pens, ....you shouldn't be the cheapest as that will be the type of clientele you will attract.... you can also create a website (I never have but some swear by it) decide what hours you want to be open. I open early as I live in a small town and most families need the early start in order to get into the city and that's what gets me the families I have as no one starts as early as I do. however I also close early. I used tobe open till 530 and I hated ....it by the time the kids left and I got dinner ready it seemed it was time to start the bedtime routine....plus I have one child in hockey and I sometimes had to be at the rink by 5. so as the late ick up clients moved on I kept backing up my close time and now I close at 430 and I love it. you have to find what will attract families in your area and go with that, but I don't suggest lowballing the price because you will get families that will want everything for nothing and try to nickel dime you all the way. im sure the other providers will have lots of info that I missed
thank you so much and I do have all the gadgets kids and a infant would need left over from my 2 boys..i was wondering if I can start the business b4 I register it I do have my first aid n stuff from my psw course I took I am completely trained and been around kids all my life, I just don't know where to start..i have contracts and policy book for parents to sign..the only thing I don't have is insurance or register but that will come in time I want this as legal as I can get it I will start off asking 35 n see where that gets me...come tax time will I be owing money due to this business?
is there any laws I should be worried about?
I'm not sure what the legal number of kids you can have in your area but yes, definitely have a solid contract and sick policy in effect!! When I opened up, I asked around what others were charging and I went with the highest but offered a reduced holiday and stat rate to make myself different and perhaps more appealing to those on a budget. If you would like to see my contract and parent package just let me know!
Sounds like you are planning on having your dc separate from your home? That is how I have mine and I love it! I do everything downstairs including a washroom and a kitchen. (I do come upstairs for a bit in the morning and at the end when I only have 1-2 kids) It is so nice to shut the lights off and walk upstairs and not feel like I'm still at work :)
Make sure you have enough toys and then gradually add on so that you can do toy rotation (altho with 2 kids yourself I'm sure you have plenty already). I don't have children of my own but I have heard from others that its important to keep dc toys separate from your childs. They are going to be sharing their home and their mom so at least they can have their room and toys to their self :)
You will need playpens/cots/sleeping mats for napping(unless you ask parents to supply, I find it easier to own my own), car seats for transporting if you do field trips (or ask parents, same as playpens), lots of kid friendly dishes, cutlery, cups. A potty of some sort for children who are training. A good assortment of art supplies, dollar stores are perfect for this. I use an IKEA coffee table for my table (it's an extra wide one and is the perfect height for children) and then I bought their plastic kid chairs that come in green, pink, blue. They eat and do art at this table. If I sit with them I either sit on a small metal chair that I got from a school or I just sit on the floor and it's still a good height. If you have younger children, a highchair or booster seat will be needed. I keep a stack of plastic bibs on hand but many parents supply their own too.
A place for children to hang their coats and place boots will be needed. I started off with coat racks but now have hooks on the wall and I much prefer that. I also have a long, 6 drawer dresser that I use in the nap room/change room. I use a diaper pad on the top to change diapers (or sometimes just the spare bed), and then each child has a drawer where they can keep diapers, wipes, change of clothes, any creams they need etc. This saves the parents from sending a bag every day. I just let the parents know when they are getting low on things.
I'm in MB so not sure how the rules are there but I added extra home insurance to our plan. Things that I claim at income tax time are: cell phone, cable, hydro, water, house insurance, land taxes, mileage on car, fuel, car repairs, any repair or reno's to the house, toys, groceries, supplies like cleaning, toilet paper, kleenax etc, housekeeper. There's probably more....basically anything that has to do with daycare you can claim. Your accountant will be able to tell you how much you can claim. For example, I buy toys and supplies separately so I get to claim 100% of that but for the bills, repairs etc I get to claim a percentage of those.
That's all I can think of for now....
In regard to you owing money for this business....again, I'm in MB so it could be different but I will usually always owe :( My total income is "such and such" and than my accountant takes all my expenses/deductions and gets it down to "so and so" and I will pay taxes on "so and so". Last year I owed $2400! It sucked lol. The biggest reason is we are mortgage free so I don't get to claim the interest paid on that which would be a huge expense. So all year round we are lucky that our home is paid for but come income tax time, I get dinged. However, I will pay the $2400 vs a mortgage. I just put money aside each month for this now that I know. I tried to up my toys and grocery expenses this year but I am a couponer and buy so many used toys that it didn't work out LOL.
One thing I would suggest is keeping your child's toys separate from daycare. My daycare is in my basement and it is totally separate. My upstairs is my space. This way I can claim 50% of my household expenses instead of calculating by the number of daycare hours etc. My daughter's toys eventually make it to daycare but I didn't want her to have to share things just because that is my career choice.
Make sure you child proof the daycare area. We changed all our outlets to tamper proof instead of using those terrible plastic plugs (had one melt once). I put baby gates on the stairs, we put in a sink and kitchen cupboards. I cook with an electric frying pan and a hot plate (occasionally throw things in the oven upstairs). I put latches on the cupboards, got a fire extinguisher. You will need playpens, bedding and cots, kids dishes, high chairs. I have a child sized table with small chairs instead of using booster seats at a big table. My husband built me a shelf for bins so that each child has a bin at my house to keep diapers, wipes and extra clothing. I change all kids on the floor but use a diaper genie. I have a bunch of hooks on the wall in the basement for coats and a white board with a monthly calendar on it to post info and reminders. You will need toys appropriate for all ages (which is another reason you should likely keep your children's toys separate as they likely have small things). We hung our TV to keep little fingers from being able to touch it. Lots of toys indoors and out. You will need to register a business name and get additional home insurance.
I agree - do not charge the cheapest rate. You will kick yourself in the butt if you do that.
You get to claim lots. If your basement is designated as daycare then you can claim 50% of your household expenses - hydro, water, internet, TV. I claim 50% of my household groceries at the end of the year. I also keep track of the mileage I use to do my shopping and my accountant claims a portion of my gas, vehicle insurance and vehicle repairs. I also claim a portion of the interest I pay on my mortgage, property taxes, house insurance, household repairs/renos. Also capital costs like a new computer, fridge, freezer etc can be claimed (not sure the breakdown). You can claim 100% of your expenses for supplies for daycare - toys, advertising, equipment, office supplies. You cannot claim your home phone but you can claim 100% of your cell phone.
Make sure you have a contract and sick policy. Also I suggest getting a good accountant and to make sure and keep good records of what you make and what you spend.
Make sure you get paid 2 weeks in advance. Have a late fee for late payment and late pickups. Read lots of the discussions on this website. It has helped me a lot even after being open for 3 years already.
People will try and screw you unfortunately, there is no getting away from it. Just cover all your bases and you can minimize the issues.