In keeping with the January 2017 report and recommendations of the Legislative Task Force on Access to Affordable Child Care, this publication is directed at persons considering the formation and operation of a family day care business. Because the start-up of such a business involves the personal financial resources of the potential provider – sometimes exclusively so – this publication seeks to offer information that will guide the decision making on whether or not to enter this type of business. It looks at six areas that constitute significant barriers to entry and successful operations: • The child care market and the dynamic of consumer choice; • The requirement of licensure; • Start up and ongoing costs (and their mitigation via tax deductibility); • The limitations imposed for tax and financing purposes by the choice of organization structure; • The requirements and process for seeking working capital and other loans from commercial lenders; • The ongoing administrative requirements of tax and regulatory compliance.
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