A Brief Note On Open A Daycare Center - 1797 Words

When you start a business, you must decide whether it will be a sole proprietorship, partnership, corporation, or limited liability company (LLC). In order to open a daycare center within your home, you have multiple business entity types to choose from, ranging from a sole proprietorship to a limited liability company to a full-fledged professional corporation. A cursory glance over the list of day care centers on the web reveals that most are LLCs, which offers multiple distinct advantages over other business types for an in-home center. Starting a home day care center as a sole proprietor means you and the day care center are one and the same in the eyes of the law. Debts incurred by the day care center are also your personal debts,†¦show more content†¦The Internal Revenue Service refers to an LLC with pass through income as a disregarded entity; in other words, it is not recognized as an entity separate from its ownership. When it comes to simple record keeping an LLC h as fewer record-keeping and reporting requirements than a corporation or being a sole proprietorship. A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and you, the owner. You are entitled to all profits and are responsible for all your business’s debts, losses and liabilities. You may, however, be able to purchase liability insurance for your business that can help eliminate tortious liability. You do not have to take any formal action to form a sole proprietorship. As long as you are the only owner, this status automatically comes from your business activities. But like all businesses, you need to obtain the necessary licenses and permits. Regulations vary by industry, state and locality. If you choose to operate under a name different than your own, you will most likely have to file a fictitious name (also known as an assumed n ame, trade name, or DBA name, short for doing business as). You must choose an original name; it cannot already be claimed by another business. The biggest downside to operating a business as a sole proprietor is the liability you are subject to. If your business