Starting a Child Care Business

1. Starting a Child Care Business Rick Horn, Small Business Development Center & Jill Norris, Child Care Resource and Referral Western Kentucky University

2. Child Care Resource & Referral • Materials and technical assistance • Training and technical assistance • Library • If licensed or certified: • Included in referrals to parents • Monthly newsletter, The Child Care Professional

3. Types of Child Care Programs in Kentucky • Registered Provider • Certified Family Child Care Home • Type II Licensed Family Child Care Home • Type I Licensed Child Care Center

4. Registered Provider • Serves up to 3 children in their home • Must register with the Child Care Assistance Program (CCAP)

5. Certified Family Child Care Home (FCCH) • Serves up to 6 children in their home • Must be at least 18 years of age • Contact planning and zoning board • To become certified: • Written Statement from Physician • Two written Character References • Criminal Record Check • Child Abuse or Neglect Check

6. Certified Family Child Care Home • To become certified (continued): • Negative TB Skin Test • All required forms • Submit application and fee of $10 • Obtain liability insurance • Appointment with Representative of the Department for Community Based Services

7. Certified Family Child Care Home • Inspection can occur unannounced if caring for over three children before certification occurs

8. Type II Licensed FCCH • Serving 7 to 12 children in a home

9. Type II Licensed FCCH • Owner/Director Qualifications: • Meet requirements of a Type I, or • Be at least 21 years of age • Have a high school diploma or GED • Orientation and Child Development Training • Not be employed elsewhere during hours of operation • And meet one of the following: • Certificate in child development services • One year verifiable paid experience working directly with children, or • Obtain 6 additional hours of training in administration

10. Type II - Before Licensing Visit • Request the licensing packet • Submission of licensing application: $50 • Contact zoning, planning, neighborhood • Visit from fire marshal • May request consultation from Division of Licensed Child Care (written)

11. Type I Licensed Child Care Center • Serving over 13 children in out of home care

12. Type I Licensed Child Care Center • Director Qualifications: • Be at least 21 years of age • Have a high school diploma or GED • Not be employed elsewhere during hours of operation

13. Type I Licensed Child Care Center • Director Qualifications (continued): • Also meet one of the following: • Master’s degree in ECE • Bachelor’s degree in ECE • Master’s or Bachelor’s degree in field other than ECE plus 12 hours of child development training • Associate’s degree in ECE

14. Type I Licensed Child Care Center • Director Qualifications (continued): • Also meet one of the following (continued): • Associate’s degree in field other than ECE plus 12 hours of child development training and 2 years verifiable full time paid experience working directly with children • CDA plus 1 year verifiable paid experience working directly with children • Diploma in Child Development Services from KY Tech • 3 years verifiable full-time paid experience working directly with children

15. Type I Licensed Child Care Center • Before licensing visit: • Request the licensing packet • Submission of application: $50 • Contact zoning, planning, neighborhood • Visit from fire marshal • May request consultation from Division of Licensed Child Care (written)

16. Are the minimum requirements to operate Do not reflect best practice For information on best practice go to: NAEYC web site http://naeyc.org/ Consider these issues when selecting a site, planning the program and staffing patterns, and projecting income and expenses Kentucky Child Care Regulations http://chfs.ky.gov/dcbs/dcc/regul.htm

17. Licensing procedures: • The following is a general list to follow to license a new business or to reissue a license for a newly purchased existing business: • To obtain an EIN (Employer Identification Number) Go to www.irs.gov and click on “Business” Next click on EIN number and fill out the form that should take 15 minutes or less and you will then have your Federal EIN number. You will receive Federal Income tax deposit information and other IRS information in a packet usually within 4 to 6 weeks. • Proceed to the Kentucky Revenue at 201 W Professional Park Ct. which is located off of Ashley circle in Bowling Green. Here you will get assistance on how to make Kentucky Income tax deposits and usually assistance on filing for the Sales tax ID number. The sales tax ID number and other licensing information can also be found at www.sos.state.ky.us which is the Secretary of State’s web site. • Proceed to the county court house and file a Doing Business As (DBA) with the county clerk. There is a small fee for this filing. This is also the office to file for the county Occupational and business license which has varying fees.

18. Licensing procedures (continued): • If you are conducting business within the city limits of Bowling Green proceed to the City Hall Annex to obtain Occupational and business licenses as required. Fees will vary dependent on type of business. • After you have obtained your EIN number and the DBA you may take these documents to the bank of your choice and open a business checking account. Bank fees vary greatly so do some comparison shopping before settling on your bank. • There are many other licensing issue that may be involved depending on the type of business. Fire, food handling, zoning, building inspections, childcare laws, and federal wage and hour laws may all be needed depending upon the type of business to be operated. The business license page at the Secretary of State’s web site www.sos.state.ky.us is a good reference point for these as well. • If you encounter any problems in licensing or have any questions related to starting your business do not hesitate to contact me at rick.horn@wku.edu or phone 270-745-1905 for further assistance.