The type of program you create will need to be identified and legally recognized as either a not-for-profit or proprietary program. Non-profit centers can receive funding from government sources or other subsidies from sponsoring agencies. Revenues exceeding expenses in non-profit centers are used to improve salaries, buy supplies and equipment, and in other ways to increase quality and services. Proprietary centers (privately run for profit) operate to produce a return for shareholders' investments. Privately run centers also use profits for salary/benefit improvements, equipment, and supplies, along with producing a return for shareholders' investments. There are three legal forms of private organizations: sole proprietorship, partnership, and corporation (seen as the most appropriate structure for operation of a child care center). You should consult with an attorney and accountant in establishing your legal operations.