I'm sorry, but I truly don't understand.  

   How can you disagree with that?  That is the way it is 
HERE.  In 
my area, where
 I live.  I was pretty clear on that.  Or at least I thought I was.  I was in 
no way implying that is the way it is everywhere.  But in my area, which is in a completely different state than you, that is truly the case.  What you have is billed not as in-home daycare, but in-home preschool.  
 
ETA--Here there is actually different licensing requirements for daycares and preschools.  There is a difference--HERE.