Get Federal And State Tax Ids
Before you can pay business taxes, you may need to register your business with the IRS and obtain an employee identification number . An EIN is the equivalent of a social security number for your business and is required on your state and federal tax filings.
An EIN is also needed to open a business bank account and ensure the separation of your business and personal finances. You may also require a state tax ID. Typically, youll need to get an EIN before you apply for your state tax ID. Check with your state or a business lawyer, as the process will vary by state.
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You are in this section of the site: Division of Child Care Services
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You are on this page: Starting a Child Care Program
The Office of Children and Family Services also provides support for people and organizations that are interested in starting day care programs in their communities. As a general rule, any day care program planning to serve three or more children for more than three hours a day on a regular basis must obtain a license or registration certificate. To obtain this certificate, the applicant must show that the day care program meets requirements that the state has established to help ensure the health and safety of children in care. The Office maintains a network of Regional Offices that can provide you with application materials, information about the process of starting a program, and help with understanding the legal requirements.
In addition to the Regional offices, Child Care Resource and Referral Agencies provide information to new and prospective child care providers about many aspects of program start up and maintenance such as:
If At First You Dont Succeed Try Again
Childcare grants are an excellent source of funding for daycare programs. Unlike loans, this capital doesnt require repayment however, there could be stricter terms for which it can be used. With both federal and state options for government grants for child care, there are many funding opportunities. Just remember to do your research, follow the guidelines, and be persistent.
If you’re looking for ways to keep track of your program’s budget, make sure to check out our free annual budget planner!
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What Is A Child Care Stabilization Grant
A Child Care Stabilization Grant is a grant created under the American Rescue Plan to help childcare providers with their pandemic-related expenses. The hope is that the grant will help childcare providers offset the increase of any operating cost due to the pandemic and ease some of their financial burden.
How Much Does It Cost To Run A Daycare Monthly
Create a budget during the business plan phase. This will help you avoid any unexpected surprises and inform any financing needs. Remember, your costs and line items will vary based on the type of daycare you operate. These will include, but not be limited to:
- Mortgage payments or rent
- Toys, games, and other equipment
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Us Department Of Commerce Minority Business Development Agency
If you are a person of color seeking to open a daycare center, a grant from the MBDA may be exactly what you need to get started. The MBDA is a Washington, DC-based organization founded in1969 by President Richard Nixon. The purpose of this grant is to promote more minority-owned businesses in the United States. This organization offers several programs either to improve your existing business or to assist you in getting your business up and running.
To be considered as a qualified applicant, you must be at least 51% owned and operated by an individual that is at least 25% African American, Asian, Hispanic, or Native American per Fundbox. To receive funding, your daycare center must be certified by the Small Business Association. You can click here to see if your business will qualify for government certification as a small business.
Obtain Licenses And Permits For Your Daycare Business
To open a daycare business, youll need to obtain a childcare license. This will show that you have met the minimum acceptable standards for child health and safety. The application process is rigorous and can be prolonged as the issuing authority conducts its investigation into your background, experience, and the condition of your facility. Some states will require more detailed information, such as compliance with building codes, zoning laws, and health inspection requirements. You may also need to provide details of your programs, activities, menu, and evacuation plan.
Once you receive a license, you must ensure ongoing compliance and renewal. Each state monitors licenses differently but you can expect regular inspections by a regulator agent and investigation of any complaints.
Note: It is illegal to operate an unlicensed daycare facility, and fines can be as high as $300 per day for non-compliance.
Other licenses and permits you may need include:
- Basic business operation license: A license from the city in which your business will operate, or from the local county .
- Zoning and land use permits: Local government zoning laws may prohibit certain business activity in designated areas.
- Building permit: If you plan on remodeling or building a commercial space, you’ll need to get a building permit.
- Certificate of Occupancy: This outlines what the building structure is used for and ensures it is compliant with building codes.
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How To Get A Grant To Open A Group Family Day Care In New York
Group family day care homes in New York state typically care for between seven and 12 children, including the owners children. To obtain grant funding to open this type of day care, you must fulfill the registration and licensing requirements, including having the premises inspected and ensuring that all adults over 16 years old are fingerprinted and screened through the child abuse registry. You must have at least one assistant over 18 years old and all child care workers must complete the states health and safety training requirements.
Register your group family day care as a nonprofit 501 organization. Nonprofit applicants qualify for a number of private and public grant programs, while for-profit applicants may not. A nonprofit organization is entitled to employ staff and pay them a salary, so you can earn a living by paying yourself.
Apply for a startup grant from the Day Care Council of New York Inc., which offers health and safety grants through its Manhattan office. Day care providers established for fewer than six months may qualify for grants of up to $500 for supplies while they are in the process of registering and licensing and existing day care providers may apply for up to $200.
How Does A Provider Apply For A Grant
Providers will log into the WA Compass Provider Portal, navigate to the Grant Information tab, select Current Grants, and select the DCYF Child Care Stabilization Grant application. The provider will answer a series of questions and then submit the application.
If you are an FFN provider, learn how to apply on the FFN Stabilization Grant webpage.
Get information about the application:
DCYF Child Care Stabilization Grant Application Step-by-Step Guide
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Kevin Mccarthy: We Stay In Until We Win
From CNN’s Lauren Fox
House GOP Leader Kevin McCarthy said he is not giving up his fight for speaker despite the fact 19 Republican members voted against him.
A third round of voting is underway after McCarthy was nominated by Rep. Steve Scalise.
“We stay in until we win,” McCarthy told reporters, adding that the numbers “will change eventually.” But he provided no evidence of how.
Pushed further, he told CNN, “I know the path.”
How To Get A Loan For Your Daycare Or Childcare Center
A loan can be the most common way to receive extra funding for your own daycare business or child care center. This is also one of the most accessible options when starting a daycare since there are different avenues to obtain one through.
- Check out your local Small Business Development Center
Your local SBA is a great resource as it helps support small businesses like a daycare facility or a home daycare business. The SBA connects entrepreneurs with lenders and funding to help daycare providers plan, start and grow their businesses.
- Contact local community banks
Local community banks are a great option as their focus is on supporting the local economy.
- Funding through non-traditional loans
In addition to your traditional banks and SBA loans, there are also non-traditional loans you may qualify for from FinTech companies. They typically connect directly to your accounting software, banks, and sales platform for a determination of loan amount. The interest rates and/or fees are generally higher, but requirements are less stringent. Checkout Kabbage, Blue Vine, PayPal, Square, andOndeck. Audra Wilson-Russell, CPA and Owner of WATS CPA.
What Your Service Needs To Provide
A service must focus on providing:
- an excellent quality of staff-child interaction
- interesting learning resources and programmes that engage children
- a supportive environment in which children can work together
- engagement and effective communication with families, whnau and communities
- positive home learning environments that reinforce learning.
Finding Home Day Care Grants
Many people mistakenly believe that the government gives grant money directly to small business owners. While it is true that some government agencies do provide grant money, this money is awarded to organizations or state agencies who then award grants to individual businesses.
Your local Small Business Administration office has counselors who can work with you on developing funding sources. Your SBA counselor can let you know if there are grants available in your area for businesses like yours. In addition, many SBA offices also have Women’s Business Centers that can likewise connect you with funding sources.
Private grants are also available, and several foundations and corporations offer them. Two that might be of interest to home day care providers include The Amber Grant, which is specifically for women entrepreneurs, as well as grants provided by the National Association of the Self-Employed.
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How Much Does It Cost To Open A Daycare
According to Entrepreneur, the average cost of starting a daycare business is between $10,000 and $50,000. However, the actual cost depends on the business you operate. A home-based daycare is much less costly to start and run than building, purchasing, or leasing a facility. Decisions such as whether you choose to provide food, your daycare hours, the number of children you care for, salaries, and more should also be factored into your startup budget.
Where To Find Assistance
Technical and Language Assistance
If you need technical assistance, including assistance in your language, guidance on preparing for and accessing the application, or questions on spending and saving receipts, you can contact either the Imagine Institute or Voices of Tomorrow.
If you have questions about the application, the timeline of the grant or other questions specific to the grant, email .
WA Compass Provider Portal
To access your account or review your profile and licensing information, log in to the WA Compass Provider Portal.
Cant Log In?
If you need help logging in to your Provider Portal account, email or call .
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What Is The Amount Of This Grant
The Child Care Stabilization Grant consists of:
Program Amount + Workforce Amount + Add-Ons
DCYF will use licensed capacity data to calculate a program amount and a workforce amount. Rates are reflective of the different costs associated with each program size.
This amount is reflective of different costs associated with each program size and is based on licensed capacity. The minimum program amount is $15,000 and the maximum is $75,000.
This amount is awarded in addition to the program amount, and is based on estimated worker units at your facility, assuming a 5:1 child to staff ratio. The minimum workforce amount is $9,000 and the maximum amount is $42,000. This amount must be used for increasing wages or other recruitment and retention activities . While the program amount portion of this grant can be used towards the cost of salaries, the workforce amount is meant to address the current challenges in recruiting and retaining staff.
When calculating the workforce amount, DCYF had a finite amount of funding that could be distributed, and a requirement that a minimum 10% of the total amount go toward workforce. We recognize that it is not enough to cover all workforce expenses child care businesses may have, or will incur.
For this calculation, DCYF:
Putting Together Your Business Plan
Depending on the specific government grant, you may be required to provide your business plan, along with the other documents they require. A business plan helps the person reviewing your information see an overview of your business while looking through your application. Itll give them a clear idea if your business is a great fit for the grant or not.
Putting together your business plan is not a step you want to take lightly. This is a business tool that you will likely use frequently throughout the life of your new childcare business. Your business plan should include details regarding your business budget, marketing plan, ideal target market and research explaining the competitive market.
Your business plan is not only needed for applying for grants, but it also acts as an incredible business tool. It gives your business a sense of direction and gives you a place to refer back to. It acts as the vision for your business.
We recommend keeping your business plan in a place that you can easily refer back to, since there is a high chance that you will need it again in the future. It is also a great idea to have an electronic copy of the business plan backed up on a storage device .
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Just In: No House Speaker Elected In Second Ballot After Mccarthy Falls Short On Votes Again
From CNN’s Annie Grayer, Clare Foran, Kristin Wilson and Jessica Dean
No one received enough votes to become House speaker after a historic second vote.
GOP Leader Kevin McCarthy failed to lock down the votes needed for speaker again as the House concluded voting for a second round. The final vote was 212 votes for Democratic Rep. Hakeem Jeffries, 203 votes for McCarthy and 19 votes for GOP Rep. Jim Jordan.
All 19 GOP lawmakers who voted against McCarthy in the first round voted for Jordan in the second round.
But Jordan, to show that he is not vying for the job, nominated McCarthy ahead of the vote on the second ballot. Six GOP lawmakers voted for Jordan in the first round.
Here’s a look at the second-vote tally:
Determining Your Startup Costs
Before you start searching for government grants, we recommend determining your startup costs first, so you have a clear understanding of how much funding you will need. This will help you search for grants that are more likely to meet your needs since the amount of money available will vary depending on the grant.
When you are determining your startup costs, it is best to include all your expenses needed for the first 6 months of your operating your business. This will give your business time to start growing your client base and earning income. Once youve reached 6 months, a lot of the startup type expenses will be paid for and your expenses will be consistent.
Some of the startup costs you want to plan on in your budget include your business license, any building permits you will need, business insurance, enough toys to get your business started, safety equipment, educational material and cleaning supplies.
Another benefit of determining your startup costs is you are less likely to run into surprises down the road. By having a startup budget, you will have a clear understanding of what costs you can expect to have during the beginning phases of your business.
Searching for Grants You Qualify For
The first step in funding your new childcare business with government grants is finding the grants that your business may qualify for. When searching on grants.gov, you will see an extensive database that is full of grants available through various government agencies.
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Learn About Daycare Legal Requirements
Childcare is a heavily regulated business. To care for children, licensed providers must complete child health and safety classes. In addition, many states require that providers have a bachelors degree and have earned a Child Development Associate credential.
Daycare centers are also subject to oversight. While laws vary from state to state, generally they limit the ratio of adults to children and enforce strict recordkeeping and other policies.
What Happens Once You Have Applied
Proposals are placed on a space development request list with other agency applicants. When funding for new child care spaces becomes available, this list serves as the starting place for approving funding for new developments.
Not all proposals can be approved when funding for spaces becomes available. Requests with the potential to provide quality service and become operational within a reasonable time frame may be considered for approval. Others will remain on the space development request list for future consideration.
For more information, please contact the Early Learning and Child Care Service Delivery office nearest you:
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