Rent a room and pay by commission

Hello everyone.
I was wondering if its possible to rent a room to do massages and facials but instead of paying every month or every week a set amount I can pay the owner 40% and keep 60%?? I will buy my own products and do my own advertising. And if that is possible will I need to get an establishment license or the owner have to get it? And If I do it this way will it still be my business with my own business name? It's just because I'm very new and I don't have clients so I wil not be able to pay a set amount every month until I have a clientele.
Thank you for the help :)

Tags: Room, commission, rental, room, treatment

Replies to This Discussion

Permalink Reply by Melissa Bradley on March 31, 2013 at 9:09pm

This is the way I do it and for the same reason as you, however, our split is 70/30. 60/40 is too low if you are assuming all cost of product, advertising, etc. I would not do it for less than 70. I work under the owners establishment license and all my cards, menu, advertising has the salons name and number with me as the Esthetician. I do not use a separate business name of my own and that's just fine with me right now. I like it this way cuz I'm still my own boss, make all the decisions as far as my treatments and treatment room but without all the headache of actually owning a business. It works for now.

Permalink Reply by Belinda Baptiste on April 15, 2013 at 1:14pm

Thanks Melissa

Permalink Reply by Cindy on April 16, 2013 at 2:07pm

I guess you pay all your taxes and you are able to write off which things on taxes? I have the option to change over to a renter but I'm trying to find the best way for myself. You pay for all retail and back bar products and equip? But the liability is under the salon?

Permalink Reply by Lisa Hewetson on March 31, 2013 at 11:31pm

I am doing that right now myself! Yes - it is my business with my own business name. However, I have both my website and the salon's website listed on my business cards, as they can only book online through the salon's website. My menus and business cards have my business name. You will need another license (or at least in OR you do) it's called an independent contractor's license. I am fairly new too and so far so good!

Permalink Reply by Belinda Baptiste on April 15, 2013 at 1:13pm

Thanks Lisa :) Did you get your own equipment as well or were they in the room?

Permalink Reply by Lisa Hewetson on April 16, 2013 at 6:36pm

I share the room w/ another esty (we both work every other week) so I use her steamer and mag lamp, as it would be too much equipment for one room. We each have our own back bar products, linens etc. I do pay my own taxes and everything I spend on my business is a tax write off (product, supplies etc.). I carry my own insurance, but the salon carries an insurance for any type of damage to the salon.

Permalink Reply by Cindy on April 16, 2013 at 2:08pm

What are the things you pay for out of your split?

Permalink Reply by Gladys Allen on April 1, 2013 at 6:03am

Belinda the way I have it in my spa, amazing you day spa. I have one person 50-50 for massage, however I do all the advertising, have all the supplies for him. I also do the same for esty and nail tech. I have one renter and she is the only one that is actually in business for herself. I supply the license for the establishment and they are employees on a 1099. In short they do work for themselves in a way because it is a split. I hope this helps

Permalink Reply by Belinda Baptiste on April 15, 2013 at 1:12pm

Yes it did :) Do you know what kind of licenses she had to get because i know we both live in florida?