Insurance help needed - opening daycare in someone else's home

[Suzie_Homemaker]

Ouch. Some harsh and definitely worrisome replies. Hoping I can clear things up.

I have no children of my own. I am operating a home daycare of out someone else's home. 2 of the children enrolled in the daycare live in that house. We are entering into this arrangement because it is mutually beneficially - I get to have the career that I want and my house is not an appropriate place for a home daycare. She gets to have her kids with a caregiver that she trusts.

I will be self employed. I have set the hours, wage, etc. The home owner is paying the same price as everyone else and she is not earning a percentage of my income.

Okay.

One more question then. Are you going to be living in the house or just running the day care from it?

If YOU don't live there, you aren't an in-home day care because it's not in YOUR home.

You won't be able to claim expenses for heat, water, etc that are your business costs because it's not your home.

Also, be careful. CRA will likely consider you are an employee because not running day home from YOUR home. This mean your friend has to follow Labour Standards rules. The rules they apply to determine if you employee or self employed is location of work (not your home), hours of work (likely affected by care hour your friend need) etc.

This more complicated than you think.

Link to CRA self-employed or employee : http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-14e.pdf