Starting in Indiana

[BethDroste]

Hi. I'm going to start watching 3-4 kids in Indiana. I have to watch 6 to be licensed so I will be unlicensed but I want to be legal. What do I need to do to do that? How do I become and stay legal? What do I need to provide for the parents at the end of the year? Is there a list somewhere of what I should keep track of? This is all very new to me but I want to start out doing it correctly. Thank you everyone for your help and advice!

[Michael]

Check your standards here: https://www.daycare.com/indiana/

[TomCopeland]

Hi. I'm going to start watching 3-4 kids in Indiana. I have to watch 6 to be licensed so I will be unlicensed but I want to be legal. What do I need to do to do that? How do I become and stay legal? What do I need to provide for the parents at the end of the year? Is there a list somewhere of what I should keep track of? This is all very new to me but I want to start out doing it correctly. Thank you everyone for your help and advice!

As long as you are complying with your state licensing laws, you are legal as far as the IRS is concerned and you can deduct all the same deductions as if you are licensed. You should give parents a receipt indicating how much they paid you for the year, get them to sign a copy and keep one for your records. You can get an Employer Identification Number (EIN) from www.irs.gov (for free) to use in place of your Social Security number. The parents will need an identification number from you.

The three most important record keeping tasks are: save receipts for all expenses associated with the cleaning, repairing and maintaining of your home; track all the meals and snacks you serve daycare children; keep records of how many hours you do business activities in your home (when children are present and after they are gone). My book Family Child Care Record Keeping Guide lists over 1,000 allowable deductions and how to keep good records.