I started my website HomeschoolCPA to help homeschool organizations, but sometimes the lines between a family homeschool and a homeschool organization get a little fuzzy. Here’s one example of the new and creative ways the people are homeschooling today.
I am considering starting a homeschool with a group of 5 children. They are all from different families and none of them is my own. I have a Masters degree in education and am comfortable working as an independent contractor. I plan on teaching these children in one of the boy’s home with the parents’ blessing. Is this legal? What do I need to do to set it up? Would the parents need to set up a homeschool co-op? I am having difficulty finding information about this for Maryland. Thanks for your help!
Mrs. A in Maryland
Dear Mrs A,
Congratulations on your new venture. Teaching other people’s children is certainly a legitimate business. You will be a modern day governess. (like Mary Poppins!)
I do not believe the parents need to set up a homeschool co-op. But you need to set up a small business. I recommend these steps:
- Pick a business name, although you can use your own name
- Consider opening a business checking account to keep your business and personal expenses separate (it helps at tax time)
- Have a written agreement with the parents about your duties and your fees (i.e. how much and when will you be paid)
- Keep good records of all our expenses, especially mileage. Read my Small Business Start-up Guide available to download here: Small Business Start Up Guide
- Set aside 20-30% of your income after expenses (i.e. 20-30% of your profit) to pay income tax and self employment tax. You will probably also need to make quarterly estimates payments to the IRS.
My ebook Taxes for Homeschool Business Owners will be very helpful to you!
I’m not familiar with Maryland’s homeschooling laws, but here in Ohio we must notify if someone other than the parent does a majority of the instruction. Maryland may have a similar notification rule. You might want to do a little digging on-line and ask the families that are hiring you about Maryland’s homeschooling laws.
Best of success to you!
Carol Topp, CPA
Helping Homeschool Leaders