Outlines basic considerations and requirements for running a home-based child care business. Unregulated family child care providers get guidance on: (1) the benefits of becoming regulated, including greater income potential, eligibility for additional tax deductions and for state and private grants, and access to a referral system; (2) particular business expenses that offset income; (3) general tax consequences of caring for children; (4) record keeping and tax tips, including the importance of saving and storing receipts by type of expenses and keeping track of hours worked and how much each parent pays; (5) the difference between unregulated and illegal child care providers; (6) eligibility for government benefit programs, such as Temporary Assistance for Needy Families (TANF), other tax credits, and child care subsidies; (7) the importance of a written agreement with each parent, clearly stated rules of how care will be provided, and adequate insurance; and (8) ways to reduce risks, includingdamage to the home or its contents and injury to provider, family members, children entrusted to their care, or parents. A smoothly operating business allows providers to focus on ensuring quality child care.
