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Daycare and Taxes>Sole Proprietorship or LLC???
LaLa1923 06:31 PM 11-27-2012
Which one do I need?
Also, my Fiance and I aren't married yet....How will this affect my taxes related to the daycare?? Can i still claim a portion of the house, utilities....etc? Does the daycare insurance have to be in my name? Or can it be in his??
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Lefse&Kids 07:05 PM 11-27-2012
In my experience with taxes.... If your not married, everything has to be in your name. Your fiance may be on these things but you need to be the primary holder of anything you may claim. Also, assuming this is a new daycare, out of your home, and you have not hired any employees, you would want a sole proprietorship.

This is just how I have had to do it in my state ND. Also, I would suggest talking with your banker about proper record keeping so when tax time comes around your not scrambling for reciepts if you need to disclose detailed funds information.
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TomCopeland 12:00 PM 11-28-2012
Originally Posted by LaLa1923:
Which one do I need?
Also, my Fiance and I aren't married yet....How will this affect my taxes related to the daycare?? Can i still claim a portion of the house, utilities....etc? Does the daycare insurance have to be in my name? Or can it be in his??
Since you aren't married you can only claim expenses related to your home if you are legally responsible for the debt. So, if your name is on the utility bill you can deduct a portion of it, if you name is on the house mortgage you can depreciate a portion of your home, home insurance, property tax, and mortgage interest. If not, then you can deduct these items.

You want business liability insurance to protect your business, so it must be in your name. Homeowners insurance protects the home.

You should be a sole proprietor unless you have a ton of personal assets you are trying to protect. See my article for more info on LLC:http://www.tomcopelandblog.com/2011/...mpany-llc.html
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allsmiles 12:50 PM 12-03-2012
i have no assests to protect LOL so would you suggest a sole proprietorship also if you are doing daycare outside of your home?? in texas, if you are operating in a home outside your residence, you are considered a center. thanks!
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TomCopeland 01:27 PM 12-04-2012
Originally Posted by ladyquana:
i have no assests to protect LOL so would you suggest a sole proprietorship also if you are doing daycare outside of your home?? in texas, if you are operating in a home outside your residence, you are considered a center. thanks!
I think a sole proprietorship also makes sense even if doing child care outside your home. It doesn't matter if you are considered a center.
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Tags:llc, sole proprietorship, tom copeland
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