23 Comments
Have you always wanted to have a team of staff working for you? Or are you the more solitary type, and would like to rent your extra booth space out to an independent contractor? Either business model can work wonderfully for you - depending on what you want.
Before you go ahead and make that decision, make sure you know what you are jumping into, and what it could mean for you. In this post, we're going to explore what defines an employee and an independent contractor, and what separates them.
Maryann has an accomplished, 30+ year background in the beauty industry. As a cosmetologist she opened her first salon in ’83. She has specialized as an educator since 2006. Maryann knows what it takes to create successful salon businesses and is here to share her experience with you.
Hi , hopefully you still receive comments but I want to open my own shop and be my own boss , I’ll be the only one working , how do I do taxes for myself ? Do I just do a 1099 form am I supposed let a tax person help me on that ? Everything will be new to me so your help will be everything :)
Hello Kris,
I checked into the new rules for the Beauty Business in California,It is confusing. It does seem that Independent Contractors will fit into a very small criteria. It will be difficult to work as a Contractor. It seems even leasing a space, booth or chair may be difficult as well.
I am not an expert in this area, so my best advise is to contact a Tax Specialist in California and let them help you navigate the new laws and rules.
Best of Luck in your business.
Hello
about New California law, I heard No more Rent booth ,have to lease the space, and no More independent Contractor(commission work)
Is it true?
Hello Sheri,
I was with you on the Independent Contractor status until your last statement. As an IC, they are responsible for booking their own appointments. I am not a tax lawyer, however, you can go to the state website and get instruction manuals for who is an IC and the language that describes who falls in that category.
Be very careful with this. I would consult a tax attorney just to be on the legal side of these new laws.
Best of luck!
Do all Independent contractors who work in a salon need to have their own DBA and business licenses? Even if the IC is just commission based and working at a couple of different places? Did that supreme court ruling that passed in May change the Lash Artist 1099 situation at all? I own 2 lash salons but I do not control what the artistes wear or when they work, I also do not supply anything but a space to use when they want me to book them. Is this okay?
Hi Ana,
You should check with the City you are going to do business in to see if you need a business license. You will also need a Cosmetology Establishment license and a cosmetology or Esthetics license for services you personally will provide. Check with the state for the requirements for microblading. This is not under Cosmetology. You may need separate licensing for that.
I hope this helps you.
Good Luck on your new venture!
To open a lash business do you just need the businesses registration certificate or do you actually need the establishment license as well ? I’m already a cosmetologist, but I do lashes and want to do microblading so was wondering which licenses I need for my business in California
Hi Arlisha,
Congratulations on your goals. I am very aware of the struggle of commission versus renters. I had salons in the Detroit Suburbs myself. The one thing I want to stress, if you are someone who needs to be in control, booth renters will drive you crazy. They can and will do their own thing, even if it doesn’t mesh with how you want to run your business. If you want to be in charge, then commission is the way to go. I would spend a few dollars on an accountant to walk you through the steps of what is legal in the commission status. There are very specific things you must keep in mind. I am not a tax professional and would be doing you a disservice to give you advice on how to set up your business. I hope this gives you a starting point, and let us know how things work out for you.
Best of luck to you!
Hello, I have been a licensed nail tech for 17 years, and Esthetician for 5 years with 1 year of experience in lash extensions and I’m opening up my own salon in June. I have read this entire blog and I have covered everything but this section rather to do booth rent or commission? I have been planning on opening my own salon for some years now I just wanted to learn a few more techniques in the industry so that I’m able to be a leader for my staff in the future! Here in Detroit commission salons are not that prevalent but in the outer suburbs areas it is and I’ve experienced it both ways and a lot of salons in the inner city aren’t successful at all with commission but I am closer to the suburbs so I might be able to do a commission salon I’m just a little unsettled as to the investment part when it comes to payroll and hiring an accountant or tax preparer and also buying all the supplies upfront. But I know I’m the long run I’ll make my investment off the employee fast because lash extensions aren’t as costly as hair supplies! I’m paying $1,000/month currently to rent a small lash studio and the space I found for my salon is the same per month to lease so I can afford that part and I already budgeted out decor, beds, lights, carts, Etc. So Any further advice you could provide would be great!
Hi Jada,
From my experience, most States allow anyone to actually own a business. You should however check with your State Board for additional requirements. They may require a licensed professional with a few years experience be on site during business hours. Good luck!
I am 20 years old. I am a certified lash tech and will be getting certified in microblading soon. Will I be able to own and operate a shop without an esthetician license?
Hi , hopefully you still receive comments but I want to open my own shop and be my own boss , I’ll be the only one working , how do I do taxes for myself ? Do I just do a 1099 form am I supposed let a tax person help me on that ? Everything will be new to me so your help will be everything :)
Hello Kris,
I checked into the new rules for the Beauty Business in California,It is confusing. It does seem that Independent Contractors will fit into a very small criteria. It will be difficult to work as a Contractor. It seems even leasing a space, booth or chair may be difficult as well.
I am not an expert in this area, so my best advise is to contact a Tax Specialist in California and let them help you navigate the new laws and rules.
Best of Luck in your business.
Hello
about New California law, I heard No more Rent booth ,have to lease the space, and no More independent Contractor(commission work)
Is it true?
Hello Sheri,
I was with you on the Independent Contractor status until your last statement. As an IC, they are responsible for booking their own appointments. I am not a tax lawyer, however, you can go to the state website and get instruction manuals for who is an IC and the language that describes who falls in that category.
Be very careful with this. I would consult a tax attorney just to be on the legal side of these new laws.
Best of luck!
Do all Independent contractors who work in a salon need to have their own DBA and business licenses? Even if the IC is just commission based and working at a couple of different places? Did that supreme court ruling that passed in May change the Lash Artist 1099 situation at all? I own 2 lash salons but I do not control what the artistes wear or when they work, I also do not supply anything but a space to use when they want me to book them. Is this okay?
Hi Ana,
You should check with the City you are going to do business in to see if you need a business license. You will also need a Cosmetology Establishment license and a cosmetology or Esthetics license for services you personally will provide. Check with the state for the requirements for microblading. This is not under Cosmetology. You may need separate licensing for that.
I hope this helps you.
Good Luck on your new venture!
To open a lash business do you just need the businesses registration certificate or do you actually need the establishment license as well ? I’m already a cosmetologist, but I do lashes and want to do microblading so was wondering which licenses I need for my business in California
Hi Arlisha,
Congratulations on your goals. I am very aware of the struggle of commission versus renters. I had salons in the Detroit Suburbs myself. The one thing I want to stress, if you are someone who needs to be in control, booth renters will drive you crazy. They can and will do their own thing, even if it doesn’t mesh with how you want to run your business. If you want to be in charge, then commission is the way to go. I would spend a few dollars on an accountant to walk you through the steps of what is legal in the commission status. There are very specific things you must keep in mind. I am not a tax professional and would be doing you a disservice to give you advice on how to set up your business. I hope this gives you a starting point, and let us know how things work out for you.
Best of luck to you!
Hello, I have been a licensed nail tech for 17 years, and Esthetician for 5 years with 1 year of experience in lash extensions and I’m opening up my own salon in June. I have read this entire blog and I have covered everything but this section rather to do booth rent or commission? I have been planning on opening my own salon for some years now I just wanted to learn a few more techniques in the industry so that I’m able to be a leader for my staff in the future! Here in Detroit commission salons are not that prevalent but in the outer suburbs areas it is and I’ve experienced it both ways and a lot of salons in the inner city aren’t successful at all with commission but I am closer to the suburbs so I might be able to do a commission salon I’m just a little unsettled as to the investment part when it comes to payroll and hiring an accountant or tax preparer and also buying all the supplies upfront. But I know I’m the long run I’ll make my investment off the employee fast because lash extensions aren’t as costly as hair supplies! I’m paying $1,000/month currently to rent a small lash studio and the space I found for my salon is the same per month to lease so I can afford that part and I already budgeted out decor, beds, lights, carts, Etc. So Any further advice you could provide would be great!
Hi Jada,
From my experience, most States allow anyone to actually own a business. You should however check with your State Board for additional requirements. They may require a licensed professional with a few years experience be on site during business hours. Good luck!
I am 20 years old. I am a certified lash tech and will be getting certified in microblading soon. Will I be able to own and operate a shop without an esthetician license?
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cherie carter
July 25, 2024
hi my cherie carter and I now how do eyelash&eyebrow sant I 18 year old.