Thank you for your response.
Actually, NY is one of the few states for right now that has no specific licensing requirement for Adult Daycare centers. This means they are wholly unregulated in the state of NY and you do not have to apply for any special license or have specially licensed employees
to work at this type of facility in the State of NY. Thus, you need to merely comply with the city building/zoning code regulations for the area in the city where you are located.
Each city has their own building and zoning codes for opening a business, which is what an adult daycare facility is considered because it is open to the public and you are conducting a business. Thus, when selecting your location it cannot be in a purely residential zoned area, it has to be in commercial or business or mixed zoning area.
You will be required to form a corporation or Limited Liability Corporation for your business, which can be done on the NY Secretary of State
's website. Depending on the size of the business and expected income, generally the LLC is the easiest to form and maintain in the State of NY. The LLC is a flow through entity (unless you choose to be taxed like a corporation) and this means that all profits and losses are claimed on your personal income tax forms and the LLC files a tax form without paying taxes and issues a K-1 form to the members for their share of profits/losses for them to claim on their personal taxes. Of course, the LLC can be taxed like a corporation as well and this means then that the LLC pays corporate taxes and then the employees who take pay or members who take share of the profits then pay their own taxes only on what they take from the business. It is best if a member is going to work at the facility to take pay or wages instead of dividends (despite what some accountants say) because then you pay unemployment and SS taxes and while you pay more if you have to close or when you retire, this money is counted towards your unemployment benefits or SS benefits.
Once you form your corporation or LLC, then you obtain an EIN (tax ID) number from the IRS at http://www.irs.gov. This is free and can be done in minutes. You use this number on all tax forms and for paying employees as well. If you have employees you have to open up an account with the state unemployment division and pay unemployment taxes based on each employee and the total wages you are paying them. You also have to obtain workers compensation insurance
through a local workers compensation insurance company.
Once you have set up your corporate entity, the next thing you need to do is obtain liability insurance
. This means sitting down with an insurance agent and describing the whole set up of your business and they will write a policy
covering you and your employees for any liability for anything that happens to a daycare client or anyone else on your premises. The amount of your coverage should be a minimum of $1million per claim, but your insurance agent will have to discuss that more in depth with you.
Once you obtain your insurance, you have to also have your building inspected for occupancy and make sure you are in compliance with all of the local building codes, which includes fire and CO2 detectors, multiple fire exits, handicapped access, bathrooms with handicapped access and other building codes, which again vary from city to city and borough to borough and the building inspector's office will provide you a checklist or a list of items you need to have in your building.
If you are going to serve the food, the kitchen must be in a separate area from the main areas and must be inspected by the Department of Health and you would need a certificate of inspection from them as well.
As far as accepting medicaid payments, this requires that your center receive approval from the NYS Department of Health as an individual center and all of the forms you need, including for meals reimbursement and daycare reimbursement eligibility for your patients. See: NYS Reimbursement Adult Daycare
If you need more information, please ask specific questions as I just need to know what to look for you as NY is not very complex for getting one of these centers opened.
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