employee to owner ?'s
I have been an esthetician for quite a few years and have always worked for someone. I am going to be starting my own business and don't know where to start. I am going to rent space and will have my own area. I am feeling a bit of pressure and not sure if I need to get a business id to sell retail? a business name that is registered? laws in PA on labeling products and retail? and I have contacted my state board but am still having trouble locating the size needed for a room, etc. I have read through the code book a bunch of times and I feel that there is so much more info that I cannot locate. Is there anyone that can point me in the right direction? Any help is really appreciated.
Plus, if I rent space, I keep thinking why don't I just open my own place. Anyone have some experience with both and have some pro's/cons? Thank you!!!
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Replies to This Discussion
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Permalink Reply by Teresa Escoffery on
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If you sell retail, y ou must get a reseller tax ID (name varies by state). Those sales taxes are probably due on a monthly basis and incur high penalties if you are a dollar short or a day late, so keep on top of those.
If you are reselling someone else's products, there should be no need for further labeling, the manufacturer should be generating compliant packaging.
You shoudl register your business name with the state so no one else can use it. LLC or S-Corp is an option, but not necessary so long as you don't have others working for you, but if you do, it will be a good idea to make that change to protect yourself.
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Thank you, Teresa. The one company I was going to use allows you to use your own labels on their products. I wasn't sure of the laws with that. I will look into the LLC but I currently will not have anyone working for me. Also, thanks for the info on reseller tax ID....that should keep me busy for now!!!
Anyone else on specs for the area necessary for facial space? Sink in room or how close? Bathroom just in the same area? Owning vs employee?
Also, another question I have is what split if I am just renting space on services with the owner? 60/40, etc.
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I am in PA and I must say they are quite vague about many things but not the salon itself.
PA strictly prohibits "Booth rental". You will have to have a separate business name. Water needs to be "accessible". If bathroom is not within your square footage you need to get a variance. Size of salon needs to be no less than 10 ft wide and a total of 180 sq ft. Go to :
http://www.pacode.com/secure/data/049/chapter7/chap7toc.html
Good luck!
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Thank you, M Elaine!! So if I don't have my own name it is considered booth rental? LOL, sorry if that sounds like something I should know but you are right....most things are vague!! When I called them directly they just said they would send out the booklet as it would be my bible. It is not helping me with very much.
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That is correct. You either need to be an owner or you are an employee of the person who owns the business. Your space can be inside another business, but you have to have signage showing that your business in there. You can share space - lobby, reception desk, bathroom, etc. Make sure you have your own insurance also, for your own protection.
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PA also has strict guidelines for your space. It cannot be used for massage or other services. Those have to be done in a separate space. Lots of folks ignore it -- very hard for a multi-room spa to be efficient if rooms can only be used for one or the other.
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Permalink Reply by Cindy Greenwood on
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If you download the salon application from the PA state board of cosmetology - they have the guidelines on what you require - including the square footage it's the same application for esthetic salon as cosmo salon). My space did not have running water or bathroom - that was in shared space and I applied for a variance. Signage is important, they won't approve if you don't identify yourself as a separate biz. Booth rental is prohibited in PA.
There is no resellers ID in PA - what you are looking for is a sales tax ID and you have to collect sales tax on products you sell and submit your payments quarterly. You register your business name with the state. Go to the "Open for Business" site for info.
http://www.paopenforbusiness.state.pa.us/portal/server.pt/community...
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This is all great info!! I have just been in touch with a non-profit in my area that is going to be helping but they are not familiar with this type of business. it is mostly volunteers who are retired from the business. I will check out that website, thank you Cindy and Teresa! Are there any suggestions for booking appts since it is an by appt only business to start? And suggestions for selling product when I am not there? Would they be entitled to a percentage?
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10% commisson on product sales is standard, but you need to set goals so it is not seen as "extra money when I feel like selling"
Its not really selling, its education.
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