Ask Experts Questions for FREE Help !
    leannmhoward's Avatar
    leannmhoward Posts: 1, Reputation: 1
    New Member

    Jul 14, 2015, 07:03 AM
    Home daycare
    I just got licensed for a home daycare through OJDFS-is that considered a samall business? Do I have to have a business account with the bank or a savings? I'm allowed only up to 6 children.
    J_9's Avatar
    J_9 Posts: 40,299, Reputation: 5646

    Jul 14, 2015, 07:21 AM
    OJDFS? This is a global website, your general location is necessary to help you.

    What country? If in the U.S. what state?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,304, Reputation: 7692

    Jul 14, 2015, 07:40 AM
    You are now a business. You also will need to be sure, your home insurance knows of this business, and you will (most likely) be required to pay additional fees for the liability coverage for a business at your home.

    I will also assume, you checked that the zoning for your home, will allow this business.

    And that you may also need a city business license in addition to the state license. (I am assuming US) ** maybe wrong..

    Yes, this is now a business (you were actually a business, as soon as you started paying money for license fees, buying things required for the business.
    Yes you need to keep records for the business, and keep separate accounts.

    Because this is a self owned business, remember if a child gets hurt, you are personally liable for any law suit.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Jul 14, 2015, 08:33 AM
    Yes, you qualify as a small business. We don't know what level of agency OJDFS is, but I would assume that their licensing covers your local govt as well. It may cover zoning laws as well. You should check that out with your contact at OJDFS.

    In terms of having a business account it is not necessary. But not having an account means that payments need to made in your name not a business name. Otherwise you may not be able to process checks or other types of payments. You might consider looking into creating a Paypal account. You don't need a business account to do so, but it allows you to process credit card payments. Otherwise you would have to establish a merchant account with a bank to accept credit card payments. While a business account is not required, you should open a separate account for the transactions related to the business.

    You DO want to keep very good accounting. You might want to check out QuickBooks online to do this. By very good accounting I mean recordkeeping. Keep a record of all the payments you receive and all the expenses you incur. This will be needed for doing your tax returns.

    Chuck made a very good point about insurance. I'm surprised that OJDFS did not require that you obtain proper insurance before approving the license.
    DoulaLC's Avatar
    DoulaLC Posts: 10,488, Reputation: 1952
    Uber Member

    Jul 14, 2015, 08:33 AM
    Ohio, correct? Definitely keep your daycare business and personal finances separate... do not let the two mingle. It benefits you greatly to set this up as a business. You can research it on your on, and set things up, or you may find it easier to contact a small business development center where you can ask questions and be walked through the steps.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

How many children can you have at your in home daycare before getting a license? [ 3 Answers ]

How many children are you able to keep at an in home daycare before being required to get a state license? I have two children of my own already.

How do I start a home daycare in TN? [ 1 Answers ]

I am a home daycare provider in FL. In the county where I live, we have A LOT of stuff we have to do to get licensed and there are many requirements during licensing that we have to uphold through out the time that we are licensed. We had to put up new fence, haul in dirt and sod, childproof the...

I am a full time home daycare assistant, how come my employer gave me a 1099 Misc [ 1 Answers ]

I have been a home daycare assistant since sept 2009. My employer paid me in personal checks, and then last week gave me a 1099-misc. I don't understand why I am getting a 1099 misc when I am a full time employee. I work mon-fri 8:00am-5:30PMon her terms. So I don't understand what I am supposed to...

Taxes on in home daycare [ 1 Answers ]

I watch a friends kids for her on a regular basis and she pays me monthly. She just informed me that she is going to claim me on her taxes as her childcare. Do I have to file taxes now because of this? I am a stay at home mom and have been for over 4 years so I haven't had to file in that long. ...

Daycare and Home Ownership requirement? [ 7 Answers ]

Hi, I am a owner of a home in which my fiancée does daycare out of. I guess I have a few questions as to what we should do to help her with the end of the year tax situation. Will she have to be on the Deed (and/or) Mortgage in order for her to deduct items such as the driveway we put in? The...

View more questions Search