Have a daycare preschool for profit can you tell me the advantages of going non-profit?

Question

Have a daycare preschool for profit can you tell me the advantages of going non-profit?

Answer 1

When you go non-profit you can gain tax benefits.

From a parent's perspective,  I'm more inclined to go with a non-profit because all the proceeds go back into the school.   I don't feel like I'm being racked over the coals to fatten someone else's pockets.

And I can not personallly think of anywhere else in the world of education that there is for-profit education except in the day-care arena.  All the pre-schools in our area that do not provide day care are non-profit, and all the private schools in our area are non-profit.  That should tell you something.

The con would be that you would have to follow the tax laws carefully and you would no longer be the "owner" of the business.  You would give up control as a non-profit organization is an agency not "owned" by any one person.  Also, if profits increase, you would not necissarily see that - i.e. you could not profit from it.

You should speak to a lawyer that specializes in this to get all the correct information.

Answer 2

You would be able to do fund raising and apply for grants. Any money or goods donated would be tax deductible. On the other hand, you would give up control of your program to a Board of Directors and could not just sell it if you wanted to leave. There are lots of tax implications. You really need to talk to an accountant who specializes in not-for-profits as well as a lawyer.

Answer 3

non really,,, you lose money,, and alot of parent might not want to put there child there because they may think that this is a kidnap thing hehe..

Answer 4

tax benefits, more subsidies from the state