Owning an in home childcare?

Question

I run an in home childcare, my mom comes over and does this with me. We take out money for expenses and then I get 55% and she gets 45% of our income. We JUST started in Janurary, and understand that it takes a while to get a business running, but it almost feels like we will never make money on this and that it isn't even worth it. What is the amount that I should set aside for taxes? What is the easyest way to pay my mom so I don't get taxed on it, and about how much does an average provide able to deduct in a year? Thank you so much for you help, in advance!

Answer 1

Set aside 25% for taxes.  That should be too much, but better to be over than under.

Why would you get taxed on your mum's share ?

Answer 2

check out http://www.startchildcarebiz.com

how many children do you watch?

do you charge hourly or daily.

YOu can make great money here, but you have to make sure you have the right figures.