Daycare.com Forum Daycare Management Software

Go Back   Daycare.com Forum > Daycare and Taxes

Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

Reply
 
Thread Tools Display Modes
  #1  
Old 05-10-2012, 07:08 PM
dreambeliever's Avatar
dreambeliever dreambeliever is offline
New Daycare.com Member
 
Join Date: May 2012
Location: Texas
Posts: 5
Default Unique Afterschool Care in TX - Need Advice!

I'm thinking of making a leap of faith and starting a very unique child-care program. Here's the situation, please give me any advice you can!

A new Charter School (pet project of University of Texas) for grades 3-12 is starting in August and my son got in with the first lottery. It's going to be very high-tech and project-based. The students will be issued laptops and will be introduced to the content in online classes (this will take an hour or so a day outside of school) and then when they go into the classroom, they will have intense project-based learning to reinforce and really learn the content. It's turning the typical model around. So we're really excited but unfortunately the school day will only go from 8-12 and after that, the students have to go.
They really want more parental involvement than in a typical school but unfortunately those hours just don't work for a lot of families. So there will be many parents looking for afternoon (or afterschool) care that is more than just babysitting and really fills in any holes that a short school day like this might create (like less time for the arts, P.E., etc). So I decided that who better qualified than I to start that?? lol. I am a certified all level art teacher and I currently am finishing my 6th year teaching high school. I love ALL subjects, I'm project oriented and I can't wait to get this started and not because I hate my job or think this will be easy. I know owning a business will be hard. I am not sure I'm cut out for the paperwork side of it but I'm going to do what I have to do.
My biggest concern is, how will I still make a living? My husband is a band director and cannot support us on his own. I know this will be a risk but I need a clear idea of what kind of expenses I'm going to have to deal with. I have more than one local church offering their facilities to use and I have big dreams for this program. My husband is concerned about how much less I will be bringing in (so am I) and we realize we may end up having to sell our home and downsize. Here are my questions:

1. Is it true that I will have to pay two sets of taxes? One, my income and two, the profit I make from the business.
2. Do I have to be certified or registered with the state as a daycare if I'm watching 3rd-12th graders "afterschool"? Is being a certified teacher enough?
3. Is there some kind of law about ratio when it comes to these ages for an afterschool program? It's such a big range (the first year will actually only have 3rd-6th and every year they will add another grade) so I wasn't sure.
4. Would being a church change anything concerning taxes or inspections? It's not a home and not just a place where children are cared for.

Thank you for any help you can provide! I'm sure I have more questions but I'm too brain-dead to think of all of them. End of the school-year craziness is wearing me out!
Reply With Quote
  #2  
Old 05-11-2012, 01:22 AM
Michael's Avatar
Michael Michael is online now
Admin & Owner-Daycare.com
 
Join Date: Aug 2007
Location: Moorpark CA, Ocean Ridge, FL
Posts: 7,724
Default

Welcome to the Daycare.com Forum! I've upgraded your status. You can post freely now.

You may find some of your answers in your state's childcare guidelines: http://www.daycare.com/texas/

Last edited by Michael; 05-11-2012 at 01:49 AM.
Reply With Quote
  #3  
Old 05-11-2012, 07:43 AM
dEHmom's Avatar
dEHmom dEHmom is offline
Advanced Daycare.com Member
 
Join Date: Dec 2010
Location: Canada EH
Posts: 2,354
Default

Welcome!

I apologize that I don't have any advice for you. But I hope the thread Michael suggested helps you out!
Reply With Quote
  #4  
Old 05-11-2012, 10:20 AM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,057
Default Starting a child care center

Quote:
Originally Posted by dreambeliever View Post
I'm thinking of making a leap of faith and starting a very unique child-care program. Here's the situation, please give me any advice you can!

A new Charter School (pet project of University of Texas) for grades 3-12 is starting in August and my son got in with the first lottery. It's going to be very high-tech and project-based. The students will be issued laptops and will be introduced to the content in online classes (this will take an hour or so a day outside of school) and then when they go into the classroom, they will have intense project-based learning to reinforce and really learn the content. It's turning the typical model around. So we're really excited but unfortunately the school day will only go from 8-12 and after that, the students have to go.
They really want more parental involvement than in a typical school but unfortunately those hours just don't work for a lot of families. So there will be many parents looking for afternoon (or afterschool) care that is more than just babysitting and really fills in any holes that a short school day like this might create (like less time for the arts, P.E., etc). So I decided that who better qualified than I to start that?? lol. I am a certified all level art teacher and I currently am finishing my 6th year teaching high school. I love ALL subjects, I'm project oriented and I can't wait to get this started and not because I hate my job or think this will be easy. I know owning a business will be hard. I am not sure I'm cut out for the paperwork side of it but I'm going to do what I have to do.
My biggest concern is, how will I still make a living? My husband is a band director and cannot support us on his own. I know this will be a risk but I need a clear idea of what kind of expenses I'm going to have to deal with. I have more than one local church offering their facilities to use and I have big dreams for this program. My husband is concerned about how much less I will be bringing in (so am I) and we realize we may end up having to sell our home and downsize. Here are my questions:

1. Is it true that I will have to pay two sets of taxes? One, my income and two, the profit I make from the business.
2. Do I have to be certified or registered with the state as a daycare if I'm watching 3rd-12th graders "afterschool"? Is being a certified teacher enough?
3. Is there some kind of law about ratio when it comes to these ages for an afterschool program? It's such a big range (the first year will actually only have 3rd-6th and every year they will add another grade) so I wasn't sure.
4. Would being a church change anything concerning taxes or inspections? It's not a home and not just a place where children are cared for.

Thank you for any help you can provide! I'm sure I have more questions but I'm too brain-dead to think of all of them. End of the school-year craziness is wearing me out!
1) How much you will pay in taxes depends on the type of business structure you set up to run your program. If you operate as a sole proprietor, you will pay income and social security taxes on all your profit. If you set up as a C corporation you will pay taxes as a corporation and as an individual (double taxation). If you set up as an S corporation you only get taxed as an individual, not as a corporation.
2) This is a question for your state child care licensing agency.
3) Same answer as #2
4) If you rent space from the church, then your taxes will be based on the business structure you choose. If you operate as a program of the church, then you will operate under the non-profit tax basis of the church. Contact your state child care agency about whether the rules are different for church-based programs.
__________________
http://www.tomcopelandblog.com
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Child Care Facts Blackcat31 Daycare Center and Family Home Forum 0 08-24-2012 09:29 AM
Help: Afterschool Care Tips legomom922 Daycare Center and Family Home Forum 9 03-03-2011 01:30 PM
WWYD About This Dcg And Increasing Pay? E Daycare Daycare Center and Family Home Forum 42 02-02-2011 05:17 PM
Family Childcare Training Crystal Daycare Center and Family Home Forum 0 10-22-2010 01:48 PM
Practical Advice on Some "Toughies" I Care For... SimpleMom Daycare Center and Family Home Forum 7 08-23-2010 03:43 PM


All times are GMT -7. The time now is 12:11 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming