Originally Posted by Josiegirl:
I'm always toying with the idea of letting my registration lapse and taking the ## of dcks my state will legally allow(2 dcfs are allowed). But my concerns are taxes and insurance. How would that work?
Can I still claim deductibles as a business and everything else the same way I've been doing? And insurance could be a problem. My ins. co. threatened to take away my homeowners and car insurance 15 yrs. ago because I wasn't registered. But then I was taking over the limit of legal #s for being legally unlicensed. If I took 2 dcfs, would I still need extra insurance?
I just don't trust companies anymore because they're going to go for what they can get. 
So any advice?
As long as you are operating legally under your state's child care licensing rules (legally exempt) you can deduct your business expenses in the same way as if you were licensed. However, it is unlikely that you will be able to purchase business liability insurance. Most every insurance company requires you to be licensed in states where there is licensing.