Working parents find daycare centers very helpful especially during these hard times. They could be sure that their kids are well-cared for, and are provided with the safety, development and care they themselves can’t provide while they are working. And because of this, day care centers has boomed in industry and is not one of the fasting growing and most popular form of self-employment for individuals wanting to earn a living while they stay in their homes.

Though home based daycare center has several types, they still do not differ in the caring and the kind of service they provide. But in a way, day care centers are classified by authorities. They usually fall into these categories: registered, licensed, listed and unlisted.

The first of the three categories of home based daycare centers are those that function as legitimate centers based on the rules and guidelines of the government. The category is consists of a more informal child care service that is usually provided for small groups of three or four children.

In a way, it is always better for home based daycare center to follow the proper channels and be registered with the local authorities however big or small they are or however professional or informal they might be.

Registration and licenses has two purposes, one is to help care givers evade problems like unintentional income tax violations (as anyone earning over $400 dollars/month for child care is eligible for taxation) and two for parents dodging out on payments. Registration also ensures protection for both the center and the children they are taking care of.

Home based daycare centers however small can still contribute to the local economy and can in fact bring in tax deductions if it is operated from one’s place of residence. Insurance policies for the care giver as well as the children can also be acquired at a lower rate.

Usually, one central agency monitors all smaller home based daycare centers that are operating in the area. This agency is the one that search for and recruits possible caregivers after thorough background checking and then subsequently they supervise their centers.

The agencies also have to pass annual inspections done by the authorities to ensure that they are running according to the rules and regulations specified in the Day Nurseries Act. Qualified supervisors from the agencies regularly monitors home based day care centers by visiting these day care provider’s home and tendering reports and observations to the agencies.

Informal home based daycare centers fall into the unlisted category. They are limited into caring for only 5 or less children (this not including the care giver’s own children) and will fall into the ‘5 per household rule’ that is provided in under the Day Nurseries Act. They are also not affected by any other terms and conditions listed under the Act. However, child care providers handling more than 5 children in their homes are required to have a valid licenses for child care.

For more info: How to start a daycare service