Starting a Salon or Barbershop? No worries!
As a stylist or barber, you should never be afraid to explore your dream of owning your own salon or barbershop. Spend a little time doing the preliminaries so you are prepared for this journey! You've got that wonderful diploma hanging by your salon station now, but to go further with your career goals you are going to need to cut through some red tape.
The most important recommendation is that you contact your state’s Division of Licensing and Department of Taxation to determine what your state and local municipalities require, business licenses, and tax ID requirements as they do change from city to city.
While in the planning stage, look into how your state and local taxes (sales tax, sales of service) will apply to your business. Sales of beautician, barbering, and hair restoration services may be exempt depending on the state and/or county your shop is located in.
Also, you will need to obtain a Resale Certificate in order to sell products to your customers (shampoos, conditioners, or hair styling products). However, this certificate does not exempt you from paying tax on salon equipment at the time of purchase. Currently, there are different tax laws based on the state you will be opening your shop in. Online purchases may not require sales tax to be collected at the time of purchase depending on the location of both your salon and the salon equipment wholesaler, such as Keller International. Please note: you may be responsible to report these purchases to your taxation department. Be aware if salon chairs, barber chairs, or booth rentals are considered to be taxable in your area or if you are exempt.
These can be addressed with a simple phone call, email, or visit to your counties office of taxation. It’s important to remember they are there to help you and the nicer you are to them, the more helpful they will be to you.Next, you will want to make a trip down to your county clerk’s office for your DBA (Doing Business As) and your division of licensing for any required business license. Don’t forget that prior to opening, you will need to obtain business insurance, and you should take the time to shop around for this. Also, speak with an attorney and accountant about Incorporating and the benefits of separating your business assets from your personal assets (from a legal and financial perspective).
To determine whether any of these statements mentioned apply to you or are accurate in your situation, bring them up with your account and/or an attorney since all laws, licensing, and tax issues vary from state to state and county to county. All of this may sound intimidating, but it is a manageable process that is necessary for your future business success.
We wish you all the best with your growth and success in the industry!