A key element of setting up and running your out of school club is to determine which business and/or management structure suits you best. This is important because it could have a significant impact on the way you operate your out of school club and the commercial and personal risks you take. Whichever structure you decide to operate under, whether it is a private enterprise or a voluntary management committee, you will be running a childcare business.
Childcare businesses can fall into the private sector, the voluntary sector or the public sector. Increasingly childcare businesses are seen as social enterprises, where surplus profits are used for public benefit, part of the growing social economy sector.
A growing proportion of voluntary sector childcare providers, including community organisations, set up as a charitable limited company as this will enable them to access various grants and funds as well as enjoying the status of incorporation.
The majority of private sector businesses aim to make a profit (like any other business) and so adopt one of the more typical business structures such as sole trader, partnership or limited company.
Businesses can be structured in many ways and each has its advantages and disadvantages. Tax implications can have a large influence on choosing the structure you should adopt and it is probably best to seek legal advice on which structure is best for you.
The governance factsheet highlights the key points about each type of structure and can be accessed by clicking here.