I am a licensed home childcare provider in your neighboring state of Minnesota. I have been licensed 15 years, with 10 prior as a child care professional. So I can honestly say 25 years as a child care professional now! I have never, in my entire life, done a different type of work, ever. I am also Mom to a 17 year old daughter.
Not being licensed was never an option for me. My state has a "legally unlicensed" status, with serious limitations on numbers of kids you can take on, but aside from that, I am a professional and wanted all the credentials I could reasonably attain to express that. Licensing was the first hurdle.
My home was di-ssected and in-spected (but not very RE-SPECTED, but I understood!). The State Fire Marshall had to do their visit, evey inch of my home was looked over and asked about. After 15 years we have learned ways to make living here easier WITH daycare (my state accepts magnetic locks....I have them EVERYWHERE now so I can still put my toothpaste back in my bathroom drawer and keep shampoos and medications in my big giant bathroom cabinet, etc)...I just flip the little lock things every morning so they are locked for the day and we have the magnet "keys" all over the house up high in case we need to open one.
We have created wooden trim with angles to put gates in awkward places and put kitty doors on 4 doors in our home so the cats can get to their food and potty boxes and quiet, safe places to sleep where the kidlet-monsters can not get them.
My husband has agreed to do his part..which is HUGE...and make sure walkways are super extra safe and plowed/de-iced (we don't want silly new Mommys in little heels to slip and fall while carrying that baby in the car seat to the door! She will figure that out next week!)
I have only one time (the one time I did a favor for a relative of an aquaintance) had a payment issue and I did not let it go on long enough to be a major issue. In the end the aquaintance (the Moms parents who live near us) paid up after I terminated the Mom. I get paid by auto deposit from ALL of my parents in 2 week chunks (mandatory), and I get it before I do the work. I simply do not tolerate payment issues.
I seriously could go on and on, but my advice will always be...GET LICENSED. Pay your taxes and be a professional. If not, get another job and leave it to the rest of us professionals. I do not mean that as a dis...I really do not, but in any profession there are negative aspects to maintaining a professional image, and for professional home childcare providers, its the "babysitters" who do not pay their taxes and let people walk all over them and get away with it. Somehow it brings our entire profession down bit by bit. Just like crappy insurance folks make us all dis on insurance agents, or lawyers get called carpet baggers.
My opinion is that caring for children is a serious business, with alot of fun attached! But it is a business and you need to do things with safety codes in place (alot of that is where licensing comes in..background checks, home inspections and some rules that seems crazy but are in place for the safety of the crew of children you might have to get out in case of a fire, or deal with daily with all the mini-emergencies life with children throw at you!).
And just FYI~ I do run a very successful home childcare. I had 2 infant openings coming available in June and July. I just filled both spots in the last week, and one is willing to pay "air care" holding fees (the spot is open before they need it, so they will pay a percentage fee each week for me to cease interviews and guarantee the spot is theirs...I call it air care as they are basically paying for air!).
I belong to professional local organizations (one I am the co-founder of, hold an executive board position on and am the referral coordinator), got my Child Dev degree in 2010, and am looking to pursue other credentials as my 60+ hour workweeks can allow.
Best of luck!