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

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  • Опубліковано 15 жов 2024
  • 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!
    Want some help creating your LLC? Schedule your call so we can work together:
    calendly.com/t...
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    Have a specific business/tax question? Book a clarity call: calendly.com/t...
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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!

КОМЕНТАРІ • 42

  • @BeautyofWealth-qn9sg
    @BeautyofWealth-qn9sg 2 місяці тому +1

    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
      @TheHairCEO  2 місяці тому

      Thanks, I'm glad you liked it!

  • @braunylee
    @braunylee Рік тому +9

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

    • @TheHairCEO
      @TheHairCEO  Рік тому +1

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

  • @OnyekachiOkechukwu
    @OnyekachiOkechukwu 6 місяців тому +1

    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
      @TheHairCEO  6 місяців тому

      Glad this was helpful!! Congrats on the rebrand!

  • @masterstouchbarberlounge7937
    @masterstouchbarberlounge7937 Рік тому +3

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

  • @MadamT_
    @MadamT_ Рік тому +2

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

    • @TheHairCEO
      @TheHairCEO  Рік тому

      Yay!! Sooo happy to hear that!

  • @naturallykhi5458
    @naturallykhi5458 2 роки тому +4

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

    • @TheHairCEO
      @TheHairCEO  2 роки тому +1

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

  • @chanellnicoleeee
    @chanellnicoleeee 2 роки тому +1

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

  • @NakedwithNakeda
    @NakedwithNakeda Рік тому +2

    Thank you for making this video!

  • @reginajones8134
    @reginajones8134 Рік тому +3

    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

  • @lifeasderika5951
    @lifeasderika5951 Рік тому +1

    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
      @TheHairCEO  Рік тому +1

      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

  • @tiersa-mv
    @tiersa-mv Рік тому +1

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

  • @alyssarose2468
    @alyssarose2468 3 місяці тому

    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
      @TheHairCEO  3 місяці тому

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

  • @Kierracraftsndesigns
    @Kierracraftsndesigns 4 місяці тому

    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
      @TheHairCEO  4 місяці тому +1

      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!

  • @Hectorgutierrez-in8ho
    @Hectorgutierrez-in8ho 14 днів тому

    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
      @TheHairCEO  14 днів тому

      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
    @latrindaa.k.atrinagoodwinr6708 2 роки тому +1

    thanks for sharing !

  • @quenessyomy6924
    @quenessyomy6924 Рік тому

    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
    @amakamadu8698 Місяць тому

    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
      @TheHairCEO  Місяць тому +1

      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
      @amakamadu8698 Місяць тому

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

    • @TheHairCEO
      @TheHairCEO  Місяць тому

      @@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

  • @chrisfalet4809
    @chrisfalet4809 Рік тому

    very helpful thank you

  • @NyeishaJ6
    @NyeishaJ6 Рік тому

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

    • @TheHairCEO
      @TheHairCEO  Рік тому +2

      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
      @NyeishaJ6 Рік тому +2

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

  • @ausarheru7132
    @ausarheru7132 2 роки тому

    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.

  • @sb5081
    @sb5081 2 роки тому

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

  • @Westcoastjose
    @Westcoastjose Рік тому

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

  • @quenessyomy6924
    @quenessyomy6924 Рік тому

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

  • @allbarzent
    @allbarzent 2 роки тому

    Love it

  • @quenessyomy6924
    @quenessyomy6924 Рік тому

    Sort of like an Assistant but your Liscensed …🤔