Originally Posted by ladyquana:
hello tom copeland..
i am reading your blog and i see the instructions on how to "gift" a relative vs making them an employee. In texas, if you operate in a home outside of your own residence, you are considered a daycare center. Would this rule still hold true? My sister is currently assisting in my home but i am thinking about using another home and expanding to a center in order to keep more children.
But if alot of the profit would be required to go towards taxes and workers comp, there really wouldnt be much point.
thanks in advance
The IRS would not consider your sister an employee if she helped you out at the center. But, the state of Texas may see this differently, so check with the Texas department of labor to see if you would owe state unemployment taxes or need to purchase workers compensation insurance.