I absolutely agree with the ladies above, but also the reason that is called homedaycare is that the environment resembles a "home" not run like a centre. Ex. One caregiver that cares for the children and bondes with them, activities that you do with your own children, flexibility like in your own home, etc.

A current apartment is operating close to my home and is estrictly used for the daycare, they also got licensing through an agency so they could keep six children and two caregivers, it works great obviously they have to pay rent but, it gives them more flexibility to operate, they have a full day group and they also have services as weekends drop off (no more than six) and night out parents program (once or twice a month). They're two hard working women. Their expenses and rent are all 100% deducted from their taxes.

I had asked to my accountant what happens if I register the name of my daycare as "business"; she said I will have to present bills that will be charged to my business 100% in my case my groceries but if I had to rent an apartment then will have to be the rent and all services too.

I honestly do not think it is illegal to operate in an apartment that will be absolutely dedicated to children rather than in a small place shared with a family. I know it would cost more to cover your expenses but also it is convenient. Anyway, even in my case I have been looking to operate my daycare out of my house for the winter months. I still looking and my accountant said it can be deducted from my taxes.