Discussions

Hi I'm planning on starting up a daycare but I'm not sure of all the legal rules inregards to it, I know I will only be able to have a max of 4 children and only 2 can be under the age of 2, but what I don''t know is if I would have to get a gst number and what happens come income tax time, how much the daycare rates are now and if anyone is even looking for daycare right now. If anyone can help me out with the answers to these questions that would be great.  
 
Edited by Small_Town_Girl60, 2016-12-05 14:33:03

Child care is not a GST taxable service, you are not eligible to get a GST number. As far as your tax return goes, you claim the income and expenses associated with the daycare business on your personal tax return.

Ok thanks so much

Information about claiming income/deductions, etc: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/dycr/menu-eng.html  
 
Some information about unlicensed daycare:  
http://www.gov.mb.ca/fs/childcare/families/family_info/unlicensed_childcare.html  
 
business license: http://www.brandon.ca/licensing-permits/licensing

So would I still have to get a licence even though I would be private?

No licence if you stay private. If you name your daycare though you need to register the business name unless you use your first name's daycare.

Also going to add - make sure and keep ALL receipts. You can claim a lot of your household expenses. Contact an accountant familiar with Home daycare.  
 
Also going rate is around $30 a day. Most daycares charge for the spot not by attendance. That being said if you close for holidays or sick most don't charge. Some do though. Most importantly is have a good contract for your families to read over, get paid 2 weeks in advance and don't do any favours as you will end up regretting it. Set your own rules and enforce them.  
 
It is a rewarding career choice but like all jobs it has its pros and cons.

Daycare is always in demand but due to age limitations, there may be times that you are sitting with an open space. (Spaces over the age of 2 don''t fill as fast as infants) There may also be times that you just want to wait for a family that suits you and would fit well into your daycare. So because of that, this job doesn''t always offer a stable, consistent income. Keep that in mind before opening. Rates are about $30-$35 right now, with some just over/under that. Take the time to really think about what wage you will need to be able to operate/afford your business and make a profit so that you can pay your bills!!  
 
My 2 biggest suggestions for private home daycare''s.....have a solid, detailed, clearly outlined contract and policies and don''t take part timers. Some don''t mind part timers but that was my only regret when I opened. Due to ratio rules, part time schedules make it very difficult to make a consistent income. Even if you find 2 families who want to share a space, you run into issues when one family leaves and you need to find another family who fits into that exact spot. It can be done but it''s difficult. I depend on my full income so I now only accept full timers.  
 
You don''t need a GST number but you can register your business and get a BIN if you''d like. This only registers your business, doesn''t make you licensed. You should contact your insurance company as you will need the extra insurance to cover the daycare. I know some don''t have this but I think it''s important!  
 
Income tax...keep any receipt that is for ANYTHING daycare related. Groceries, art supplies, field trip costs, toys, playpens, car expenses etc. You can write off a portion of your household bills as well such as cable, hydro, Internet, phone, water, land taxes, etc. If you have an accountant already, call and ask them for help. If you don''t, it would be beneficial to find one that you like and stay with them year to year. You don''t need one that charges a high fee either!! Lots of providers do their own once they know what they can claim.  
 
We don''t pay any tax all year so come income tax time you will be paying both employer/employee portions of CPP and EI if you opt in as well as any tax if need be. You want your deductions to be as high as possible because if you make under 9 or 12g (sorry, can''t remember the exact number now) after deductions, you don''t have to pay tax. I have paid as much as $3000 back some years and none the others. Keep your receipts!!!! You have to be able to prove any expense, especially if audited.  
 
Opening up a quality, legal home daycare can be so rewarding BUT it''s like any other small business. It takes organization, time and money to operate successfully. Good luck <:img src=:images/icon_smiley.gif>:  
 
Edited by sammy, 2016-12-05 17:49:03

Small_Town_Girl60 said "So would I still have to get a licence even though I would be private? "

You need a business license because you're running a business out of your home. The city issues those for all sorts of businesses.  
 
It's also separate from the licensing part that's optional from the province (as in, licensed vs. non-licensed day care).

Abbysmum said "    Small_Town_Girl60 said "So would I still have to get a licence even though I would be private? " You need a business license because you're running a business out of your home. The city issues those for all sorts of businesses.     It's also separate from the licensing part that's optional from the province (as in, licensed vs. non-licensed day care). "

To my knowledge, no business license is required?? Unless things have changed very recently...

Simply call the licensing clerk and ask if you need a license. They'd be happy to help answer any questions you have, chance are you may not need one. But it's better to find out ahead of time than have to be at the center of a complaint.

No your incorrect if your private you do not need a licence!

.... I'm not talking about a DAYCARE license, but a BUSINESS license. I was under the impression that *all* businesses, including home-based businesses, within the City of Brandon required business licenses.  
 
As far as I'm aware, there's no separate provision making child-care services exempt, but again I'm not an expert. I can see from the bylaw that there's other types of exemptions (such as garage sales, for example), but none specifically listed as child care. (see http://www.brandon.ca/images/pdf/bylaws/6009.pdf)  
 
I would recommend calling City Hall and clarify that because it's possible that I'm wrong. They would be able to give you a more definitive answer.