Renting room/licensing procedures
just curious about renting a room in an existing salon. For those of you doing this have you registered your own business name and gotten your own business tax or city license? Seems no one has done this in the past they don't even have a category for an esthetician. Very confusing!!
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Replies to This Discussion
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Permalink Reply by Kerensa Russel on
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I just did this. Wasn't intending to, just wanted to rent a room, be my own boss, next thing you know , I got a business name registered with the county and a tax ID number.
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Permalink Reply by Andrea Sowter on
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Yes. Did this five years ago. When you rent a room, you are self employed. I have my own business license, tax id, etc. usually we are under the service category, wellness or beauty. You won't find "esthetician". You just end up in the same category as salons or spas.
Don't forget the liability insurance!
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Permalink Reply by yardley on
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Hi Andrea,
I'm starting my own studio soon. I'm so confused on what to do first. So,I have to register my business and get a tax id? then do I have to get a permit as well? Thank you!
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Permalink Reply by coldsalineplexus on
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The best resource when I went through this was my business banker. He hooked me up with a tax ID number (from the Secretary of State website, I believe) and a bank account under "Christine Giustra dba The Skin Studio," which is the easiest way to start (although you can certainly start out with an LLC if you prefer - this is a good idea for people with individual assets, like a home or substantial savings that you could be sued for, which I did not have at the time of starting my business).
Once I had those two things, I went to City Hall to apply for a local occupational license (which also set up my city sales tax account), and the folks at City Hall pointed me to the State's offices where I was able to set up a state sales tax account.
The next important step is to check with your state board to see if you need a separate salon license or a booth renter license. Apply for that a month or so before you plan to start offering services (they will have to send out an inspector, so be ready with all your required tools and fixtures). For example, I have an "Esthetic Salon License" from my state board, but my manicurists (renters) have to carry a separate "Manicuring Salon License" since Esthetic Salon doesn't cover nails. IF I were full service and had a "Cosmetology Salon License," then nails would be covered, and all the manicurists would have to do would be to get "Booth Renter Licenses" and maintain their regular licenses. It's confusing and varies state to state, and the best thing is to call State Board and describe your situation before you start offering services. If your state publishes an Occupational Standards manual for cosmetology, you can find a description of each license in there.
Finally, you need to make sure you have your professional liability (ASCP all the way!) and your general liability (slip and fall, fire, etc.) insurance set up.
A couple years later, when I was actually starting to pay myself, I went to the banker again and he converted me from a dba to an LLC, also using the Secretary of State website, also easy, cost around $72 to the state, I believe.
Since you are just getting started, I will stress the importance of doing all of your business transactions out of your business account, and keeping it completely separate from your personal accounts.
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Permalink Reply by Cindy Greenwood on
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In our state we get an esthetic salon license from the state.
Locally, if there are licensing requirements, I suspect they tend to just put you in the beauty salon category.
I am not sure what your state's business tax is - but in my state I get a sales tax license - I went directly to the state for business regisration and sales tax ID.
You don't need to be LLC - but that is something that you might want to look into.
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Permalink Reply by Misty DeLaGarza on
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In California I have a fictitious business name, business license and sales tax id. A salon, spa or medi spa owner must have a establishment license from the CA board of cosmo.
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Hi are you renting in an established salon/ spa? What are you responsible for? I want to do this but not sure what I need and what the best deal will be for me.
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Permalink Reply by Natalie on
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You need to comply with your states license but can start but getting a 'fictitious name' for business - YOU doing business As ( XYZ SKIN) is the cheapest way to go at first.
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Thank you Cindy, Misty and Natalie! I called the city planner and they said they would have to approve first if I can perform facials and treatment there... and I might have a problem... There is no sink in the studio.. although it is next to the restroom. I have to find a way on how to have water and sink... i think. Any suggestions?
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if you have plumbing connect in room could get a cheap pedestal sink or they do have sinks with no plumbing- may need to cont looking
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If your states esthetic license is under the cosmetology board then the city planner should treat the same as a beauty salon...they approve those ALL the time. What's the big deal :)
I do have a sink in my room but I still use a water dispenser and a bowl that I can keep right next to me. I don't use the water in the bowl - I dispense fresh clean water whenever I need it, usually just in my hand. The bowl catches any spillage and I also use the bowl to toss the used towels and implements into.
It looks like this and water stays hot all day.
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