Incorporating Daycare

[mickyc]

As a home daycare you do not need to be incorporated. You should be getting daycare insurance. That will cover any issues. If someone was to sue you (I think it is rare in this profession) I think they could name the corporation and you personally anyways in their lawsuit.

Just get proper insurance and you will be fine.

[ahnys]

There is a common lack of understanding of what incorporating actually means. It refers the structure of the business only, and mostly for how the income is handled for tax purposes. It will not release you from personal liability or protect you from lawsuit in any way. Incorporating is expensive, and while you would pay less income tax because you'd receive the income personally as dividends, our income is generally so small, and our income tax negligible, that home daycares run as sole proprietorships. You would need articles of incorporation set up by an accountant and a business bank account which charges for each deposit as well as withdrawal. Incorporating doesn't make any sense for us.