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Daycare Center and Family Home Forum>New Type B FCC in Ohio Help
jiggaaawhatt 12:38 PM 12-07-2018
Hi!

I'm planning on opening my own Type B Family Child Center in 2019. Initially I will be unlicensed. I'm hoping, however, to set up most of the admin side as if it's already licensed to save me the headache of changing things when I'm ready to take the plunge. The whole admin side of this is melting my brain a little so I came here for help. I was hoping someone could help answer a few of the many questions I have.

Does anyone know if I have to establish any record or anything with the state if I'm an unlicensed Type B? Surely they keep track of them somehow? I can't find much about how to be in compliance other than maintaining the set ratios.

I read a post on a thread here by Tom Copeland, essentially saying that setting up an LLC is not worth considering unless you have a lot of assets and enjoy extra paperwork. Is that the general consensus? For those of you that have an LLC, is it worth it? Why did you do it?

Is having an LLC the same as establishing a business name? Can I establish a name without being an LLC/licensed? Are there pros/cons to this? I already have a business name picked out but I have no real idea of how to establish it officially.

I have a meeting with an accountant next week who has some history of working with local family child care centers. Any good questions to ask him?

What other professionals do you have helping you? Is it necessary to have an attorney look over your contracts/handbook/etc?

Who do you use for liability insurance? What is your coverage and what do you pay? (if you don't mind sharing)

We currently live in a house owned by my mother (she lives out of state). We rent the house from her -- does this change anything? It's a 3 bedroom house with a separate 2 bedroom in-law suite attached (the basement is shared between the two sides). I would be using the in-law suite for the childcare center while my husband and I live in the main side of the home. Does anyone have experience with anything like this for tax purposes?

Do you keep records electronically? If so, what programs do you use?

If you happen to be located in NEO, what are your tuition rates?

I'm sure I will think of more, but this is all I have for now.

I really appreciate the help!
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kendallina 03:04 PM 12-07-2018
Hi! I'm legally unlicensed in Southern Ohio. I worked for several years in centers and have no desire to deal with the paperwork and home visits to become licensed. In my area, no in-homes are licensed so it's just the norm here.

The state does not track Type B's in any way. I did contact my city hall to see if I needed any license or special permission and I didn't.

I'm a sole proprietor, not an LLC. Tom's recommendation to not incorporate was enough for me .

I do not have an accountant and just buy Tom's books and follow those to do my own taxes. I've always done my own so it's worked for me.

When I first started I did register my business name. I did it online and it wasn't expensive or anything. I've let it lapse, though because there just didn't seem to be any need. I might have done this through the 'Ohio Business Gateway' online.

I did not have any attorney look through my paperwork but my time running a center and working with licensing gave me good idea of how to do it.

Hope that helps! Best of luck!
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Unregistered 04:05 PM 12-07-2018
That helps a lot! Thanks!

I relocated to OH from WI after earning my ECE degree (and working for several years in a small Montessori center) so I'm far more familiar with WI childcare laws than OH. I have no experience or resources in the field here in OH so it really helps to talk to someone else in the state

I've toyed with the idea of staying unlicensed because I know how much of a pain it is, but I'm concerned that it would prevent people from enrolling in the program. I'm guessing you haven't found that to be the case? Unfortunately, I honestly have no idea what the norm for family childcare is in this area.
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Ac114 06:54 PM 12-07-2018
Originally Posted by Unregistered:
That helps a lot! Thanks!

I relocated to OH from WI after earning my ECE degree (and working for several years in a small Montessori center) so I'm far more familiar with WI childcare laws than OH. I have no experience or resources in the field here in OH so it really helps to talk to someone else in the state

I've toyed with the idea of staying unlicensed because I know how much of a pain it is, but I'm concerned that it would prevent people from enrolling in the program. I'm guessing you haven't found that to be the case? Unfortunately, I honestly have no idea what the norm for family childcare is in this area.
Where in Ohio are you located? Iím also in Ohio, legally unlicensed and have no problem having all my slots filled. Most of the childcare providers in my area are also unlicensed as well.
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jiggaaawhatt 10:34 AM 12-08-2018
Ac114,

I'm about 45 minutes south of Cleveland. Glad to know that there doesn't seem to be much of an issue filling slots out here Are you a sole-proprietor or LLC? I've read that in terms of OH zoning laws, family child care centers are exempt because it's deemed residential use? Did you need to check with your city for any other reasons before getting started?
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kendallina 07:20 PM 12-08-2018
Originally Posted by Unregistered:
That helps a lot! Thanks!

I relocated to OH from WI after earning my ECE degree (and working for several years in a small Montessori center) so I'm far more familiar with WI childcare laws than OH. I have no experience or resources in the field here in OH so it really helps to talk to someone else in the state

I've toyed with the idea of staying unlicensed because I know how much of a pain it is, but I'm concerned that it would prevent people from enrolling in the program. I'm guessing you haven't found that to be the case? Unfortunately, I honestly have no idea what the norm for family childcare is in this area.
I find that nobody in my area (small, educated college town) even has a clue about licensed/unlicensed/whether there are any rules/etc. . Word of mouth is much more important here and how I get most of my families. Obviously that makes starting out a little difficult, but starting out can take time anywhere.
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jiggaaawhatt 11:52 AM 12-09-2018
Originally Posted by kendallina:
I find that nobody in my area (small, educated college town) even has a clue about licensed/unlicensed/whether there are any rules/etc. . Word of mouth is much more important here and how I get most of my families. Obviously that makes starting out a little difficult, but starting out can take time anywhere.
Right, the preschool I worked at was small (20 kids total) and word-of-mouth only, but the ECE community there was huge there so unlicensed centers (at least in my experience) were often disregarded as an option. Most of our families were in the ECE community themselves or some connected aspect of it (ie. social work). I'm still adjusting to the differences here lol but I am glad to know that if I don't decide to pursue licensing that it doesn't seem to hurt the business. Did you start spreading the word before you opened to line families up or did you open first and then start spreading the word?
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kendallina 08:53 AM 12-10-2018
Definitely got the word out before I started but I had a unique situation. I was a stay at home mom with my two year old who was very active in the stay at home mom thing in town-attended all the events, library story times, play dates galore. It became clear that some mom's would like a mom's day out program 2-mornings a week. So most of my first clients were friends or acquaintances. Now I'm full time preschool.
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Tags:business name, llc, neo, ohio, records, rent, taxes - unlicensed, tom copeland, type b
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