You have probably heard about the salon chair rental business model, but you know very little about how it works. This article will help you. Contact us for more information after you read this informative article.
From a stylist’s perspective, a chair rental can have both its advantages and drawbacks. For most stylists, choosing this type of model for their cosmetology career means plenty of independence. As independent contractors, they are able to:
- Set their own schedule
- Manage their own business
- After the booth rental fee, keep all of their earnings
- Use their favorite product line
However, there are a number of negative aspects of salon booth rental, as well. Independent stylists must be prepared to:
- Maintain their own books, including filing and paying quarterly income taxes
- Pay for advertising and market themselves to attract new business
- Earn less money while they build their client base
- Deal with increasing booth rental fees.
- They must purchase their own equipment and supplies
- Pay for their own health insurance and receive no benefits (no vacation time, retirement plan, etc.)
Local laws must be checked
Every city is different and thus, every set of city laws is different. You cannot assume that since a law is on the books in one city, say Fort Worth, that it will be the same in another like Dallas. You must familiarize yourself with laws relating to owning a business i.e. what licenses you must have, what you may or may not do. Taking a little time before you open your business will save headaches after you rent a salon booth lease.
Get your act together with the IRS
Never assume with the IRS, and do not assume with local and state governments. We know of people who went to great lengths to make sure they were squared with the IRS, only to forget that they lived in a state income tax state. Have a clear understanding of your tax liabilities before you begin. You have a tax liability for income earned, and it is your job to keep track of that liability and to set aside monies so that you can pay that tax. The good news is this: as a business owner, you have many tax deductions available to you that you did not have working in someone’s beauty salon for commissions.
About Salon & Spa Galleria
For a leasing agent, call 817-917-1416 or 817-823-7105. To reach our concierges call 972-691-7300.
Our family of independent operators all have their own numbers, so please contact them directly.
Call soon to find out more about our move-in specials and to become part of the Salon and Spa Galleria Family.
Salon and Spa Galleria is a locally owned and operated business in the Fort Worth area, with nine locations to serve you. We will be happy to answer any questions you might have about salon chair rental, and should you find yourself in Fort Worth, we would be quite happy to give you a tour of one of our facilities.
Your future is now! Grab hold of the brass ring and find your success!
