Own Daycare But Not Run It

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  • Howl
    Daycare.com Member
    • Aug 2014
    • 29

    Own Daycare But Not Run It

    Is it possible to own a daycare but have someone else run it (in your home)?
    Last edited by Howl; 02-16-2015, 05:13 PM. Reason: I wanted to change the title but can't lol so no edit
  • daycare
    Advanced Daycare.com *********
    • Feb 2011
    • 16259

    #2
    Originally posted by Howl
    Is it possible to own a daycare but have someone else run it (in your home)?
    Yes and no. You have to be there at least 20% of each day.

    Also, when its in home you assume a TON of liability that could not only cost you your license it could end you up with criminal charges. You are 100% responsible for everything that happens.

    Comment

    • Annalee
      Daycare.com Member
      • Jul 2012
      • 5864

      #3
      Originally posted by Howl
      Is it possible to own a daycare but have someone else run it (in your home)?
      How would you make any money if you paid someone else to work your daycare, especially an in-home daycare even if it were possible.

      Comment

      • Howl
        Daycare.com Member
        • Aug 2014
        • 29

        #4
        Where can I find that information?

        Originally posted by daycare
        Yes and no. You have to be there at least 20% of each day.

        Also, when its in home you assume a TON of liability that could not only cost you your license it could end you up with criminal charges. You are 100% responsible for everything that happens.

        Comment

        • permanentvacation
          Advanced Daycare.com Member
          • Jun 2011
          • 2461

          #5
          It would depend on the laws of child care in your state. Here in Maryland, we are limited on the amount of hours we can use a substitute, but we can have a co-provider. The co-provider could work as many days and hours as we want them to.

          But like Annalee said, I don't think you would make much money if you paid someone else to work full time every week at a home daycare.

          You not only have to pay their weekly pay, but you also have to pay the required taxes on payroll, workman's comp, etc. Plus you have to make sure you have the proper liability insurance to have an employee.

          If I had a full load of 8 kids and were paid the going rate in my area for each child, I'd make $1253.20/week. If I paid an employee $10/hour (most daycares are open 12 hours per day) that would be $600/week gross and I'd still make $653.20. But then I'd have to pay for extra insurance, workman's comp, etc. and in the end I wouldn't make enough money to make it worth all the hassles.

          I did look into it once. I talked to my specialist, lawyer, and accountant. After learning all that would be required to hire a full time employee, I decided not to bother.

          If you do decide to have someone else run your daycare, I'd suggest that you check with the child care laws, a lawyer, and accountant to make sure you are doing everything legally and protecting yourself, your home, and your business.

          Comment

          • Howl
            Daycare.com Member
            • Aug 2014
            • 29

            #6
            Somehow.

            Originally posted by Annalee
            How would you make any money if you paid someone else to work your daycare, especially an in-home daycare even if it were possible.

            Comment

            • Howl
              Daycare.com Member
              • Aug 2014
              • 29

              #7
              That's exactly what I've been doing. I currently provide only overnight and weekend care because I have a day job. I want to expand my business. Thanks for the advice.

              Originally posted by permanentvacation
              It would depend on the laws of child care in your state. Here in Maryland, we are limited on the amount of hours we can use a substitute, but we can have a co-provider. The co-provider could work as many days and hours as we want them to.

              But like Annalee said, I don't think you would make much money if you paid someone else to work full time every week at a home daycare.

              You not only have to pay their weekly pay, but you also have to pay the required taxes on payroll, workman's comp, etc. Plus you have to make sure you have the proper liability insurance to have an employee.

              If I had a full load of 8 kids and were paid the going rate in my area for each child, I'd make $1253.20/week. If I paid an employee $10/hour (most daycares are open 12 hours per day) that would be $600/week gross and I'd still make $653.20. But then I'd have to pay for extra insurance, workman's comp, etc. and in the end I wouldn't make enough money to make it worth all the hassles.

              I did look into it once. I talked to my specialist, lawyer, and accountant. After learning all that would be required to hire a full time employee, I decided not to bother.

              If you do decide to have someone else run your daycare, I'd suggest that you check with the child care laws, a lawyer, and accountant to make sure you are doing everything legally and protecting yourself, your home, and your business.

              Comment

              • permanentvacation
                Advanced Daycare.com Member
                • Jun 2011
                • 2461

                #8
                You're welcome.

                Comment

                • NeedaVaca
                  Daycare.com Member
                  • Mar 2012
                  • 2276

                  #9
                  Originally posted by permanentvacation
                  It would depend on the laws of child care in your state. Here in Maryland, we are limited on the amount of hours we can use a substitute, but we can have a co-provider. The co-provider could work as many days and hours as we want them to.

                  But like Annalee said, I don't think you would make much money if you paid someone else to work full time every week at a home daycare.

                  You not only have to pay their weekly pay, but you also have to pay the required taxes on payroll, workman's comp, etc. Plus you have to make sure you have the proper liability insurance to have an employee.

                  If I had a full load of 8 kids and were paid the going rate in my area for each child, I'd make $1253.20/week. If I paid an employee $10/hour (most daycares are open 12 hours per day) that would be $600/week gross and I'd still make $653.20. But then I'd have to pay for extra insurance, workman's comp, etc. and in the end I wouldn't make enough money to make it worth all the hassles.

                  I did look into it once. I talked to my specialist, lawyer, and accountant. After learning all that would be required to hire a full time employee, I decided not to bother.

                  If you do decide to have someone else run your daycare, I'd suggest that you check with the child care laws, a lawyer, and accountant to make sure you are doing everything legally and protecting yourself, your home, and your business.
                  Then on top of that you also have to pay for food, cleaning supplies, art supplies, utilities, taxes etc...I can't imagine there would be any money left

                  Comment

                  • Abigail
                    Child Care Provider
                    • Jul 2010
                    • 2417

                    #10
                    It is possible to make a profit but you need to work part time. You don't make much profit unless you have enough kids to require two staff as well but even with only seven kids and a part time helper you can make it work. I pay all those insurances as well and am required to be on site sixty percent of the time. Pm me for more information.

                    Comment

                    • Blackcat31
                      • Oct 2010
                      • 36124

                      #11
                      There are a couple providers in my area that run their child cares out of someone else's home and do so successfully.

                      They must make enough of an income for it to be good or I can't imagine they would continue to do it that way...kwim?

                      I would contact someone from your state licensing offices and talk with them about the rules and regulations for your area.

                      Comment

                      • daycare
                        Advanced Daycare.com *********
                        • Feb 2011
                        • 16259

                        #12
                        Originally posted by Blackcat31
                        There are a couple providers in my area that run their child cares out of someone else's home and do so successfully.

                        They must make enough of an income for it to be good or I can't imagine they would continue to do it that way...kwim?

                        I would contact someone from your state licensing offices and talk with them about the rules and regulations for your area.
                        In Ca that would be illegal. You must live in the home that you conduct childcare from.
                        Not only that even if you could do that with mortgage rates or rent as high as it is here you would never be able to make a profit. Average rent in my area is about $3000 plus for 1200sf and I'm not in the highest housing area

                        Comment

                        • daycare
                          Advanced Daycare.com *********
                          • Feb 2011
                          • 16259

                          #13
                          Originally posted by Howl
                          Where can I find that information?
                          Title 22. All of this information was given to you at the orientation and by your rep at the time of licensing.

                          Not to sound rude, but this is all very general information they give you during the process of getting licensed.

                          Comment

                          • daycare
                            Advanced Daycare.com *********
                            • Feb 2011
                            • 16259

                            #14
                            Originally posted by daycare
                            Title 22. All of this information was given to you at the orientation and by your rep at the time of licensing.

                            Not to sound rude, but this is all very general information they give you during the process of getting licensed.
                            Correction to my first repose to yor post. Sorry I am on my phone and was coming back from a road trip. You can only be absent from the daycare 20% of the time and need to be present the additional amount of time.

                            Also the care you are presently offering I'm not sir is legal, you should really check with LIC.
                            Better safe than sorry

                            Comment

                            • daycarediva
                              Daycare.com Member
                              • Jul 2012
                              • 11698

                              #15
                              Not legal in my state anymore. You have to be the owner/operator and it has to be in your home.

                              Comment

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