Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

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Sole Proprietor or Limited Liability (LLC)?

Many child care providers have  asked me following question, ” Should my childcare business be incorporated?

Here is my response: The decision to incorporate your childcare business is solely up to you, however, it is recommended by tax professionals that childcare providers set up a Limited Liability Company (LLC) to reduce their personal liability.

I was licensed as a home provider in 1999 and was operating as a sole proprietor.  I filed a fictitious name report and was doing business as, ” Morgan Daycare” until 2001 in the state of Missouri. In 2001 my Child Care specialist, whom at that time had over 20 years of experience as a childcare specialist; recommended that I incorporate my childcare business to reduce my liability.

Moreover, she told me that if I were to be sued by a parent, in the event of a child injury; I could lose my home and personal assets. That was enough to encourage me to incorporate my childcare care business.

What is a Limited Liability Company (SMLLC) or a ” Single Person” Limited Liability Company ?

 According to the Internal Revenue Service, a Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. An SMLLC that does not elect to be a corporation will be classified by the existing federal guidance as a “disregarded entity” which is taxed as a sole proprietor for income tax purposes.

As a SMLLC, you will still have the advantage of filing form 8829, Expenses for Business Home Use, and claim all of your home office expenses in the same way as a sole proprietor. In fact, you get to incorporate without paying the corporate taxes, because you are a single member LLC.

Am I totally Protected with a LLC ?

Resources for Child Caring.org recommends that providers purchase a lot of professional business liability insurance, preferably ($1 million per occurence and $2 million aggregate).  There is also a concern that many providers struggle to keep business records in a professional manner and could risk losing corporate protection in a law suit. Moreover, Resources for Child Caring, believes that the biggest benefit of a LLC is the potential for additional liability.

How Do I File a LLC?

I incorporated my childcare business for only $105 in the state of Missouri by visiting my local secretary of state office. The process was fairly easy, however, I recommend that you get legal advice on incorporating your childcare business.

I hope that you have been inspired to protect your personal assets and to organize your business in a manner that provides you and your family with the protection that you need.  Along with incorporating your childcare business, having liability insurance protects you and the children that you care for.

To Your Success!

Shiketa Morgan

Resource Links:

http://www.irs.gov/businesses/small/article/0,,id=98277,00.html

http://www.irs.gov/pub/irs-pdf/f8829.pdf

http://www.resourcesforchildcare.org/index.cfm?page=Tax%20Preparer%20Email%20Update&id=5

http://www.familychildcaretaxes.com/tax_tips_article.php?blRecordNumber=59

 

 

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Five Effective Ways to Communicate and Connect With Parents

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It is vital that your childcare business takes the necessary steps to effectively communicate and connect with parents.

In fact, planning to communicate effectively with families is a sure way to have a mutually working relationship with parents.

Planning to communicate effectively is a sure indicator that your childcare business strives to connect with families.

Here are five effective ways to communicate with parents:

1. Upon enrolling new children, plan to hold a pre-enrollment visit to allow the family and child to be introduced to the classroom or simply hold a family orientation meeting.  This process helps to make the transition into your program much smoother for the child and family.

2. Consider posting a sign that invites parents to visit your program and observe at any time. In the event that a parent has the day off, it is good to know that parents are welcome to stop in and observe their children. You are sending a message that parents are welcome and you are confident about the practices in your program.

3.  Are parents involved in program planning? Many parents feel guilty because they must work and one way to help them to feel involved in their child’s experience in your program is by asking them to get involved. Here are some ways to invite parents to get involved:

  • Ask parents to donate needed items for parties
  • Invite parents to get involved with program events
  • Invite parents to offer field trip ideas
  • Share menu ideas
  • Serve on your PTA
  • Share their family cultures and incorporate into your curriculum

4.  Be sure that you interaction with parents are always warm, friendly and respectful. Train staff to smile and greet parents when they see them. Express empathy when parents have concerns and strive to have a win-win relationship. Here is one thing to keep in mind,  People don’t care how much you know, until they know how much you care.

5.  Does your program have a variety of ways to communicate with parents?  Having a variety of ways to communicate with parents promotes good communication and is a sure way to creating a positive connection with families.  This includes:

  • Creating and issuing a parent handbook
  • daily infant/toddler reports
  • Greet parents upon arrival and hold brief conversations
  • Schedule an annual or bi-annual parent teacher conference
  • Create a festive and inviting parent information area/bulletin board
  • Weekly/monthly newsletters
  • Periodic phone calls to discuss important issues or to thank parents for choosing your program
  • Email information to parents about upcoming events, etc

It’s time to review the way that you communicate with parents. Moreover, it’s time to make the necessary changes to assure that you are effectively communicating with parents. To prevent from being overwhelmed with too many changes, make one change at a time.

Good Communication with parents is Vital to having a Successful Child Care  Business!

For more Child Care Business Tips Be sure to Check, be sure to subscribe to my Child Care Business Management eCourse! click here

Your Child Care Business Coach,

Shiketa

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