There are essential things that every educator should know before starting a charter school in the new year. If your client has decided that the time is right to create and launch the charter school they have always wanted, it is essential to have a plan. Charters play an important role in education access and tailored learning. Before your client forms the school you have been dreaming of, there are things to consider.

What Starting a Charter School Means

When forming a new charter, the school becomes a legal entity. Your client should form an LLC to establish that business entity. The process is easier than you think.

Create A Business Plan

Even a school needs a business plan. The cost of operating a charter is high, and business plans detail the school’s planned tuition and enrollment and the anticipated expenses. Consider the size of the facility necessary for the number of students you anticipate educating, the number of educators needed for those children, the infrastructure for school meals, and the supplies and equipment for art, music, and creative electives.

Form A Business Structure

Choose the structure for your school. An LLC or corporation provides some legal protection for your client’s assets.

File Tax Identification Papers

Your client’s legal entity and charter must also establish tax identification and employer identification numbers. Advise them to use these numbers for tax recording purposes.

Brand The School

Branding is a vital part of what makes a successful charter school. With public funding, charters are part of the school system but are independent entities. Establishing a brand identity for the school is crucial to help draw students.

Open School Accounts

Business accounts for schools serve essential financial purposes. Establish accounts with a local bank for the school.

Establish School Accounting

Whether your client hires an outside accounting firm or a direct accounting employee, they need detailed accounting and recordkeeping. Keep receipts, statements, and financial documentation to create financial statements and tax filing.

Obtain Permits and Licensing

A charter needs permits and licenses for legal operation. Your client should confirm their municipal permit requirements and secure the paperwork.

Purchase Educators Liability & Employee Practices Liability

Liability insurance policies are necessary for financial protection. Along with traditional commercial property coverage, secure sufficient liability policies.

Build a Website

Your client must get their brand out there to establish an online identity. They must build a website that represents their charter, their brand, and the goals they have.

Establish Phone Systems

Internal and external communication is important for ensuring connectivity with prospective students and educators.

Your clients must take the preparation one step at a time to ensure adequate planning.

Other Tips for Charter School Establishment

Once your client has established their charter, discuss liability coverage regularly. Help them understand how to add new teachers to the policy promptly and discuss other considerations with them. Charter school instructors are independent of the school district but are still part of that district. Thus, it is essential to implore upon them the importance of coverage for the school, teachers, and the district.

About PGUI

Professional Governmental Underwriters, LLC., is a full-service risk management company dedicated to assisting public, educational and non-profit entities in the management of their professional liability exposures including educators liability insurance. We are dedicated to providing state-of-the-art professional underwriting management and loss control advisory services on behalf of our designated carriers. For more information, call us toll-free at (800) 586-6502.