whether or not you get licensed you should always have a contract in place. You can make your own in word, make 2 copies have both signed, one for each of you. It should have all your info, times/dates you will work, vacations, pay schedule, drop off/pick up time, illness policy, materials supplied, etc.
You can just google home daycare, look through a few sites and you can make your own really quick.
Most in-home daycare providers charge around $3-5 an hour per child for full time care. You can actually make more money babysitting occasionally at $10 an hour, having a drop off/last minute service at $10 an hour or doing part-time care at $5-7 an hour per child. I do part-time so I still have free days to run errands, schedule appointments, etc.

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A woman is like a teabag. You never know how strong she is until she gets into hot water.-Eleanor Roosevelt

When I had 1 in daycare 5 years ago it was $90 a week.. 6am to 6pm. Any one could leave their kids there for those hours. We provided diapers and formula and IF they were on a bottle we still had to do whole milk. (Was on bottle for 1 extra week)

Now I watch a friends dd when school's out I charge $10 a day (4 hrs tops)