Registering my daycare advice and tips

Hi, my name is Dawn and I'm thinking of registering a home daycare, I'm a stay home mom love kids and have been doing daycare but not registered and a person has asked me to give receipts (new child starting sept) I thought I could just give a recipet but some told me I have to register as a business to do this???

O.k so what next??? been looking online for info???

think its 135/5 years and wondering how much tax will be deducted??

and do I charge tax???

do I need hst #??
any info would be greatly appreciated!!!!
thanks again DAWN

will this really benifit me!!!

In Ontario, you are not required to register your home daycare business if you're using your own name. However, if you have chosen a different name for the daycare then by law you are suppose to register it.

For example if you register your home daycare business under your name, Jane Smith, then you do not need to register. However, if you call it "Janes little munchkins" then you are suppose to register it.

Home daycares do not charge taxes.

Because I use my own name for the daycare, I am not registered. I issue year end receipts to all parents. Include your name, address, SIN number, name of child (address) and dates cared for and your signature.

Very few people in Ontario have actually registered their daycare. It isn't so much about the daycare but that you are securing the name you have chosen. Once you have registered, no one else is supposed to use the same name within your location - ie anyone that would be your competitor although someone in another city can also use the same name.

As long as you are not producing business cards or letterhead that you need to put a name and logo onto then you don't need to register.

As far as tax receipts go you just use a basic receipt book or make up a statement to give to the parents. At tax time they need to have your SIN number as that will also go on their taxes. It also means you will be able to claim all of the costs of providing daycare. If you go to the revenue canada website there is a booklet for home daycare that outlines the different things you can claim. The will reduce your taxes owing considerably so it is to your advantage to give receipts.

It's all just about the tax man. Regardless of whether you have registered your business with the government or not you STILL have to issue receipts and claim all income from daycare on your taxes.

One big positive reason for me to register was so I didn't need to give out my SIN. I'm not comfortable with that. Parents should get receipts everytime they give you payment. Good luck!

thank you so much for all the info really helpfull!!!!

As Judy mentioned; technically whether you are registered or issuing receipts or not; you should still be claiming that income. In which case you sort of have to have receipts and paperwork. That being said, I realize that many people earn thier income under the table from this type of career.
I chose to claim everything because I want to have a verifiable income when it comes to banking, lending, etc. I also feel like it gives me an edge over providers who cannot issue receipts to parents. I have a name for my business, but it is unofficial. The cheques are made out to me, personally, and I do my taxes under my own name. I take advantage of all the available tax credits and deductions for a self-employed business person. Therefore, I don't end up losing half of my income to the "man", hahaha.
I did find the government website quite useful. Go to www.cra-arc.gc.ca and search "daycare in your home". It will give you a wealth of info on what they need to see, how to give receipts, and what you can write off, etc!!!
Good luck!

Hello everyone!

Hoping I can get some great feedback from everyone so here goes...

I want to open up my own home daycare but I will have someone else caring for the children (1 of which is mine). I will be providing all toys, ,meals, etc etc...she will simply be 'coming to work'. Reason why I do not want to take on the obligation of caring for other children is because I actually enjoy my current f/t job and dont want to give it up. At the same time, I am tired of paying lots of $$$ for daycare fees so I thought why not take advantage of the fact that we live in a great neighbourhood with a million kids and have the luxury of my own child being at home with other children and taken care of by a certified and trusted caregiver.

Long story short, what I would like to get feedback on is the whole registration part of the business. I understand that if I decide to simply name the daycare in my own name, I do not have to register the business...is this correct? my concern however is that I will not be the caregiver so do the same rules still apply? The person who will be taking care of the children is not interested in benefits or any of that stuff, but dont I have to claim something since I am paying her???

Its a bit of a tricky situation and again, I dont really want this to be a 'business' per say, moreso a home that provides daycare. At the same time, I dont want to bend any rules and learn at tax time that I owe a million dollars for taking the wrong measures to get this started...any advice would be wonderful.

Thanks in advance and hoping to learn some great feedback!

For the situation that you're in Mayanna, I would contact the provincial government for more information

I also didn't want to give out my SIN on 100 receipts that may end up anywhere. I chose to spend the 60.00 to register my business in Ontario, but that does not require me to charge HST since daycare is exempt.

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Originally Posted by mayanna

Hello everyone!

Hoping I can get some great feedback from everyone so here goes...

I want to open up my own home daycare but I will have someone else caring for the children (1 of which is mine). I will be providing all toys, ,meals, etc etc...she will simply be 'coming to work'. Reason why I do not want to take on the obligation of caring for other children is because I actually enjoy my current f/t job and dont want to give it up. At the same time, I am tired of paying lots of $$$ for daycare fees so I thought why not take advantage of the fact that we live in a great neighbourhood with a million kids and have the luxury of my own child being at home with other children and taken care of by a certified and trusted caregiver.

Long story short, what I would like to get feedback on is the whole registration part of the business. I understand that if I decide to simply name the daycare in my own name, I do not have to register the business...is this correct? my concern however is that I will not be the caregiver so do the same rules still apply? The person who will be taking care of the children is not interested in benefits or any of that stuff, but dont I have to claim something since I am paying her???

Its a bit of a tricky situation and again, I dont really want this to be a 'business' per say, moreso a home that provides daycare. At the same time, I dont want to bend any rules and learn at tax time that I owe a million dollars for taking the wrong measures to get this started...any advice would be wonderful.

Thanks in advance and hoping to learn some great feedback!

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Just one little piece of advice is to check with your insurance company as well...I'm not sure how they would feel about insuring this without you being the provider. Good luck.

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Originally Posted by CPST_Manda

I also didn't want to give out my SIN on 100 receipts that may end up anywhere. I chose to spend the 60.00 to register my business in Ontario, but that does not require me to charge HST since daycare is exempt.

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Does that affect anything other than not having to use your SIN and being able to use a name other than just your full name? I'm thinking of registering my business because I want the business name to be something other than just my name but I'm worried that it will just complicate things like income tax, insurance, etc. Do you pay yourself out of the money the business makes? (for example, the business makes $700, you pay yourself a salary of $450 and the rest goes for supplies) or do you just make the $700 and then basically pay for your own supplies out of "your own money"? Hopefully that makes sense. Basically, I just want an idea of how different it is having your business registered than not.