The Best Business Structure for Barbers, Braiders, & Hair Stylists (LLC vs Sole Proprietor)

Learn about the best business structure for barbers, braiders & hair stylists - LLC vs Sole Proprietor. Discover the benefits of each for your salon or barbershop business!
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DISCLAIMER
This video is for informational purposes only and may not be accurate for your unique situation. Before applying anything stated in this video, please consult with your tax advisors. For unique tax situations, please consult with your tax advisor. Thanks for watching!

[@BeautyofWealth-qn9sg]

Love this break down girl! We coach all of our clients to get at least an LLC and if they make over $50,000 to potentially go S-corp! Thanks again for sharing.

[@TheHairCEO]

Thanks, I'm glad you liked it!

[@braunylee]

This really helped me understand how things work. I’d love to see more videos like this that break down the options. Thank

[@TheHairCEO]

Thanks for the feedback, I have more videos like this planned!

[@OnyekachiOkechukwu]

After 5 years of being in the beauty industry, I finally get it right. This is so helpful especially now that im rebranding. Thank you so much😊😊

[@TheHairCEO]

Glad this was helpful!! Congrats on the rebrand!

[@masterstouchbarberlounge7937]

I just discovered your channel.......thanks for simplifying this process

[@chanellnicoleeee]

David never sleeps page sent me here excited because I am a licensed Esthetician figuring everything out

[@MadamT_]

This video is so great thank you so much for sharing. I learned a lot!

[@TheHairCEO]

Yay!! Sooo happy to hear that!

[@naturallykhi5458]

Very good information! I stumbled across this at the right time

[@TheHairCEO]

Yay! I’m so happy to hear that! Let me know if you have any specific questions :)

[@NakedwithNakeda]

Thank you for making this video!

[@TheHairCEO]

you're welcome!

[@tiersa-mv]

Thank you for this info. It’s explained well ❤

[@lifeasderika5951]

So happy I found this channel. I’m a license cosmetologist. I was working for different salons such as Supercuts etc for about 12 yrs. I now renting a salon suite and I don’t know what I need to do concerning taxes. My question is what step I need to take to make sure I’m doing the right thing or do I really have report it. Cause I also have a part time job

[@TheHairCEO]

Hey DeRika!! I’m glad you found this channel too! Even with your part-time job, as a independent salon suite owner you’re required to report income once you make over $400

[@reginajones8134]

Should I consider calling myself a Beauty Consultant/CEO on paper instead of a hair stylist/CEO, I am under an LLC. I'm interested in applying for grants/loans

[@Hectorgutierrez-in8ho]

Hi 👋🏼 I’m glad I stumbled upon your video! So I own a barber shop , been in bussines going on 5 years but I am a sole proprietor, do you recommend me to move on to an LLC to get business loans? And would my 5 years in bussines still move along to my LLC? Or would I be starting all over??

[@TheHairCEO]

Hello! I'm glad you stumbled across this video too! If you're wanting to get business loans, then a formal structure like an LLC is going to be very helpful! You won't be starting all over, they'll still be able to see the financial performance of the business for all 5 years by looking at financial statements and tax returns. If you want more specific help creating your LLC or figuring out the best way to structure things for business loans, schedule a clarity call with me: calendly.com/thehairceo/ytc

[@latrindaa.k.atrinagoodwinr6708]

thanks for sharing !

[@alyssarose2468]

If I’m just a single and not wanting to start a salon or anything, just renting a chair- should I do Sole Prop or LLC/S corp.. it’s so hard and so much info!

[@TheHairCEO]

I like the idea of doing an LLC so you have more flexibility to implement tax saving strategies when you need it!

[@Kierracraftsndesigns]

When I look at my application to start an esthetician business from home I only have the option for corporate, partnership , and sole proprietorship. So far leaning towards corporate

[@TheHairCEO]

Congrats on starting your business from home! I’m a big fan of that because expenses stay low until you grow. Sometimes, sole proprietorship also means LLC. But without seeing the application I can’t say if that is the case. Feel free to schedule a clarity call (link in channel description) if you want to discuss it more!

[@chrisfalet4809]

very helpful thank you

[@quenessyomy6924]

What if you contract your ( Liscenced) services Out to a Liscenced stylist (ie Braid downs/temp colors/ shampoo, no chemicals), and the pay cash/cash app. That would be I099 correct? So I would pay taxes?

[@amakamadu8698]

Hello love your channel, I and my daughter are students in Cosmetology and Esthetics, I have always been thinking about launching our business while we are students, so I'm still thinking of what option to start with an LLC or S-corp? Can a student even launch one of these while in school?

[@TheHairCEO]

Hello!! Thanks for being part of the community! I typically don’t recommend forming an entity while in school unless you’re serving clients outside of the school. I don’t want you spending money unnecessarily when the requirements of those entities kick in immediately. Having said that, if you still want to form one, I don’t recommend making the S-Corp election. If you want to talk about it more, book a call so we can go into more details about your specific situation!

[@amakamadu8698]

I do service clients though and really need funding to purchase hairstyling tools, equipment etc...any suggestions?

[@TheHairCEO]

@@amakamadu8698 i suggest looking into grants and loans for funding if you're not able to fund it yourself. Some grants don't require an LLC and will consider your request being a sole proprietor

[@ausarheru7132]

Does a single member LLC electing to file as an S-Corp, have to pay self employment tax on just the salary and if so; is the remaining considered (Distribution or a Dividend) and is that distribution/dividend taxed as a personal income.

[@Westcoastjose]

So in all essence S-Corp is the way to go.

[@TheHairCEO]

Absolutely!

[@sb5081]

Topic: Would a barber and hairstylist do good in partnership tax wise? What ways if so?

[@quenessyomy6924]

They Tax you twice because you make more money? A check and and quarterly? 🤔

[@NyeishaJ6]

So if I’m starting a hair business should I register my business as a sole proprietor? Or an LLC?

[@TheHairCEO]

Hi Nyeisha! There's nothing to register if you decide to run your business as a sole proprietor unless you're getting a DBA (Doing Business As). A lot of my clients who are new to the hair business start LLCs and I think it's a good decision once you've decided this is a business you're going to take serious.

[@NyeishaJ6]

Thank you ! So much I’m glad I went with an LLC. I definitely want to take my business seriously and establish it.

[@allbarzent]

Love it

[@TheHairCEO]

Thanks for watching!

[@quenessyomy6924]

Sort of like an Assistant but your Liscensed …🤔