Maybe Someone Can Help With My Questions?

[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?

[kendallina]

I run legally unlicensed. In my state you can have 6 kids. You can still deduct things the same on your taxes. My insurance ( state farm) added a daycare rider to my plan which covers me.

[284878]

I think the only difference, in most states, is the food program and accepting state assistance. Other than that it is all the same. I think even Tom once wrote that even an illegal day care can do taxes like an legal day care.

[TomCopeland]

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.

[Josiegirl]

Originally Posted by TomCopeland

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.

Ok thank you. Yes, the insurance issue has me the most worried about the whole idea. People can be very sue happy and above all else, I want to protect myself and my home.

[daycarediva]

Can you add an additional liability policy to your homeowners to cover the daycare?

I was legally unlicensed for a few years and did that, claimed everything and was even on the food program!

[Josiegirl]

Originally Posted by daycarediva

Can you add an additional liability policy to your homeowners to cover the daycare?

I was legally unlicensed for a few years and did that, claimed everything and was even on the food program!

Hah, my insurance company has new underwriters and they're not renewing my homeowners policy when it comes due in Dec. So, as it stands at the moment, I'm checking around for other insurance anyways. When I meet with this agent next week, I will be asking many 'what if' questions. They're not renewing my policy because I run dc from my home and have 2 dogs. Even though I have a separate dc insurance policy. So I'm searching for something that will bundle all my insurance needs together and get out from under these people altogether.

[TomCopeland]

I've posted an insurance directory on my website of companies that insure providers: http://tomcopelandblog.com/child-car...ce-directory-3

[Josiegirl]

Originally Posted by TomCopeland

I've posted an insurance directory on my website of companies that insure providers: http://tomcopelandblog.com/child-car...ce-directory-3

Thanks so much!