Kicking Off Your Microschool or Homeschooling Biz:
The Legal Business Stuff, Made Simple
Embarking on the journey of starting your own microschool or homeschooling business is an exciting endeavor. It presents an opportunity to impact education at a personal level and tailor learning experiences to students' unique needs.
I bet you are really excited about starting your own microschool or homeschooling business. I am excited for you! But before you dive into the fun stuff, let's chat about the not-so-fun (but super important) legal bits. Don’t worry, I’ll keep it light and easy to digest.
To get you started, I'm going to share 6 important legal items you should consider when starting your microschool or homeschooling business.
First, Set Up Your Business.
Since you are creating a business, the IRS wants to know what kind of business structure you are going to have. I’m not a lawyer, so this information is solely for information purposes only and should not be used as legal advice. Please consult your own lawyer if needed.
What's Your Program Identity?
So, what will be your school or program's identity? Think about what kind of business your program is going to be. An LLC, DBA, a Corporation, or maybe a Nonprofit? Each one comes with its own bag of goodies (and challenges) in terms of taxes and rules.
If you decide to go the LLC route or a limited liability company, you will need to get an EIN number. The IRS also wants to know how your business is going to be identified at tax time. Usually you would identify yourself with your social security number (SSN) when you file your taxes. But by choosing to use an EIN number for your business, you’ll keep your SSN safe when you give parents their year-end statement showing how much they paid.
Get Official
You’ll need to register your business with the right folks – local, state, or national authorities. It’s like saying, “Hey, we’re legit!” Plus, it’s a big deal for tax stuff and looking professional
Play by the Education Rules.
Regulations
Familiarize yourself with the local and national laws governing homeschooling and private education. Every place has its own set of rules about running a school. These laws can be complex, covering things like curriculum standards, assessment methods, attendance tracking, record-keeping, and teacher qualifications. Compliance is key to operating legally and successfully.
Accreditation
While it's not a must, getting accredited from recognized educational organizations can really boost your microschool or homeschool program credibility. Accreditation can also be a factor in attracting students and establishing trust with parents.
Zoning and Location Laws: Pick the Perfect Spot.
Zoning Regulations
The location of your microschool must comply with local zoning laws, especially if operating from a residential area. These laws vary greatly and can impact where and how you can run your school.
Health and Safety Compliance
Ensuring that your chosen location meets health and safety standards is non-negotiable. This includes maintaining proper sanitation, ensuring accessibility, and having emergency exit plans in place.
Hiring and Employment Laws: Hiring Your Dream Team.
Employment Regulations
Know the ins and outs of hiring, like fair pay, benefits, and keeping the workplace and your team safe and happy. These laws ensure you treat employees ethically and legally.
Background Checks
Conducting thorough background checks on all staff members is crucial for student safety. This is super important – make sure anyone you hire is A-OK to work with kids. Safety first!
Employee Handbook
Put together a nifty handbook that spells out all the dos and don'ts for your team. Such as: outlining polices, expectations, and legal responsibilities. I want you to think of this handbook like a treasure map for navigating your school’s policies.
Covering Your Bases with Liability and Insurance.
Liability Insurance
Obtaining liability insurance is vital to protect your business from potential lawsuits or accidents involving students or staff.
Property Insurance
For those with physical locations, property insurance is important to safeguard against damage to property and assets.
Data Protection and Privacy: Keeping Info Safe
Student Data
Your policies and systems must adhere to data protection laws, especially when handling sensitive student information. This includes how you collect, store, and share data.
Online Safety
If your microschool or homeschooling program will use online learning platforms, ensuring these tools are secure as bank vault, and comply with child online protection regulations is a must.
Alright, that's everything on the legal stuff for starting your own microschool or homeschooling business. It’s a bunch of paperwork and fine print, but it’s all about setting up a safe, legit, and awesome learning space. Remember, keeping things legal isn’t just about checking off the boxes; it’s about creating a trustworthy place where learning and fun happen.
Want more tips to help you get started with the legal side of your microschool or homeschooling business?
Grab my FREE “Legal Stuff Made Simple” Guide. Inside of this guide, there is:
- Licensing, Zoning, and HOA checklist
- Tips for choosing and searching a business name
- An explanation of the difference between Sole Proprietorship, Limited Liability Company, Doing Business As, and Non-Profit
- Tips on forming your LLC an what an EIN number is
- The pros and cons of choosing the Non-Profit route for your business
Want to chat legal stuff 1-on-1 with me?
Schedule a FREE Dream Call with me and let's chat all about it. Or if you've already had your FREE Dream Call with me, join me for a
1-on-1 Foundation Session or Coaching Cycle where we can figure out all your legal needs together.
