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Unregistered 09:28 PM 08-05-2009
Originally Posted by mdjb_bryant:
I am starting an in home daycare. I am CPR certified, experienced, and have 2 children of my own. My question is if I keep one or two kids over the limit of what is required for an unlicensed daycare, does anyone know what they can do if I am turned in. I want to hire someone to come help once I reach my limit. Can you do that and be unlicensed. If not what happens if you do anyway. I have checked state requirements but nothing is listed about what happens if I am over my limit. And I mean seriously just one or two extra. I would never overwhelm myself and deny proper care for the children.
To answer your question (instead of bashing you), your main concern is IRS. If your parents are claiming their payments to you as a tax deduction, and you are not reporting them as income, you leave yourself open to IRS audits. If you DO claim your income, and they see that you are not licensed... you leave yourself open to audits.

Yes, you can hire a helper. Same thing with them though, if they claim income and you dont claim expense... there is risk. AND if you and he/she DOES claim income/expense when you dont have a license... there is risk.

In addition, what you are doing is illegal. To take income and not report it, or report the income as a service fee without having a license, is plain illegal. If you get audited you will be in trouble. As someone above mentioned, the action is up to your state and county regulators. however, you will probably get a slap on the hand and told to get a license.

P.S. Its easy to license.... save yourself the headache at tax time and get it done.
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