{"id":6767,"date":"2021-07-13T15:33:07","date_gmt":"2021-07-13T15:33:07","guid":{"rendered":"https:\/\/salonbusinessboss.com\/?p=6767"},"modified":"2023-04-11T02:34:33","modified_gmt":"2023-04-11T02:34:33","slug":"what-is-the-best-business-structure-for-a-hair-salon","status":"publish","type":"post","link":"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/","title":{"rendered":"What Is the Best Business Structure For a Hair Salon?\u00a0"},"content":{"rendered":"<p>When it comes to opening a hair salon, there is a lot that goes into planning and starting up your business. Of course, you want to make sure you pick out all of the right equipment, have all of the correct licenses, and have the best location. However, have you thought about what business structure would be best for your hair salon?<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#When_choosing_what_business_structure_to_use_for_a_hair_salon_you_have_five_options_to_choose_from_which_include\" title=\"When choosing what business structure to use for a hair salon, you have five options to choose from, which include:\u00a0\">When choosing what business structure to use for a hair salon, you have five options to choose from, which include:\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Benefits_to_Limited_Liability_Company\" title=\"Benefits to Limited Liability Company\u00a0\">Benefits to Limited Liability Company\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Protect_Your_Assets\" title=\"Protect Your Assets\">Protect Your Assets<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#It_Allows_You_To_Be_Your_Boss\" title=\"It Allows You To Be Your Boss\u00a0\">It Allows You To Be Your Boss\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Tax_Benefits\" title=\"Tax Benefits\u00a0\">Tax Benefits\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Other_Business_Structure_Options_To_Consider\" title=\"Other Business Structure Options To Consider\">Other Business Structure Options To Consider<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Sole_Proprietorship\" title=\"Sole Proprietorship\u00a0\">Sole Proprietorship\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Partnership\" title=\"Partnership\">Partnership<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#C_Corporation_Business_Structure\" title=\"C Corporation Business Structure\">C Corporation Business Structure<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#S_Corporation_Business_Structure\" title=\"S Corporation Business Structure\">S Corporation Business Structure<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Choosing_the_Right_Business_Structure\" title=\"Choosing the Right Business Structure\u00a0\">Choosing the Right Business Structure\u00a0<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Hair_Salon_Ideas_to_Promote_Your_Business_at_your_Events\" title=\"Hair Salon Ideas to Promote Your Business at your Events\">Hair Salon Ideas to Promote Your Business at your Events<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Related_Questions\" title=\"Related Questions\">Related Questions<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Can_you_change_your_business_structure_once_you_have_opened_your_hair_salon\" title=\"Can you change your business structure once you have opened your hair salon?\">Can you change your business structure once you have opened your hair salon?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#How_much_do_hair_salons_make_a_year\" title=\"How much do hair salons make a year?\u00a0\">How much do hair salons make a year?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#How_much_does_it_cost_to_form_a_Limited_Liability_Company_business_structure\" title=\"How much does it cost to form a Limited Liability Company business structure?\">How much does it cost to form a Limited Liability Company business structure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/#Looking_to_start_your_own_Salon_Get_the_documents_you_need_to_get_organized_and_funded_here\" title=\"Looking to start your own Salon? Get the documents you need to get organized and funded here.\">Looking to start your own Salon? Get the documents you need to get organized and funded here.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h5><span class=\"ez-toc-section\" id=\"When_choosing_what_business_structure_to_use_for_a_hair_salon_you_have_five_options_to_choose_from_which_include\"><\/span><b>When choosing what business structure to use for a hair salon, you have five options to choose from, which include:<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ol>\n<li><b>Sole Proprietorship<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><\/li>\n<li><b>Partnership<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><\/li>\n<li><b>Limited Liability Company<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><\/li>\n<li><b>S Corporation<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><\/li>\n<li><b>C Corporation<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><\/li>\n<\/ol>\n<p><b>With many small businesses, including hair salons, your best option will be a Limited Liability Company (LLC). However, all small businesses, especially hair salons, are unique, so just because a Limited Liability Company may be best for most hair salons does not mean it is your only option.<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><\/p>\n<p><iframe title=\"Best business structure\/business entity for independent barbers, braiders and hair stylists\" width=\"1200\" height=\"675\" data-src=\"https:\/\/www.youtube.com\/embed\/ho2gqYiDYMg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_to_Limited_Liability_Company\"><\/span><b>Benefits to Limited Liability Company<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are three benefits to using a Limited Liability Company business structure for your <a href=\"https:\/\/www.forbes.com\/2007\/04\/20\/beauty-salon-llc-ent-law-cx_mf_0420fundsalonstructure.html?sh=38804d74483d\">hair salon business<\/a> overusing a sole proprietorship, partnership, S Corporation, or C Corporation.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Three unique benefits to choosing a Limited Liability Company are:<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<ul>\n<li>It Protects Your Assets<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>It Allows You To Be Your Boss<\/li>\n<li>Tax Benefits<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Protect_Your_Assets\"><\/span><b>Protect Your Assets<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignright size-medium wp-image-10498\" src=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/535-300x170.jpg\" alt=\"What Is the Best Business Structure For a Hair Salon?\u00a0\" width=\"300\" height=\"170\" srcset=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/535-300x170.jpg 300w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/535-1024x579.jpg 1024w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/535-768x434.jpg 768w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/535-600x339.jpg 600w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/535.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>A Limited Liability Company is the best business structure for many small businesses, including hair salons, because it will protect your other personal assets. If someone sues your hair salon business, then they can only come after your business. They cannot sue you for your house and car when you have a Limited Liability Company.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>With other business structures, you do not have this added protection, and if you get sued or something wrong would occur with your hair salon business, you could lose your things as well as your business.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Although you do not want mistakes to happen ever, and hopefully, you will never get sued. It can bring peace of mind knowing that you are not at risk of losing everything if you are sued. Using a Limited Liability Company business structure, you will not have to worry about losing your car or home if something were to happen. Your hair salon business would be the only thing at risk.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"It_Allows_You_To_Be_Your_Boss\"><\/span><b>It Allows You To Be Your Boss<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>A limited liability company also offers more flexibility for you and your business since you will be able to be the leader of your small business.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>You will not have to go in front of a board of directors or shareholders meeting every time you need to buy a new hairdryer, mirror, or curling iron. You are your boss, so you can make these purchases on your own based on your hair salon business budget.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>With a partnership business structure, you do have one or two (or however many partners you decide) to work with that you must agree with when making decisions. Unfortunately, people sometimes choose to open hair salons as partnerships with people that they know, whether family or friends. When business disagreements happen, then you can lose the previous relationships that they had with these people.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Also, the more people you add as a partner in your business, the less personal control you have in your hair salon.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Benefits\"><\/span><b>Tax Benefits<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Unfortunately, some small businesses run into the risk of having to pay two types of taxes if you choose the wrong business structure. Hair salons who choose to use Limited Liability Company as their business structures can avoid having to pay taxes on both your income from your hair salon and having to pay taxes on the money that your business makes.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>With other business structures, you may be required to pay taxes for the money that you make as a hair salon owner. Then turn around and be taxed again on the money that your business makes. This would mean you are getting taxed on the money twice.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Other_Business_Structure_Options_To_Consider\"><\/span><b>Other Business Structure Options To Consider<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Just because a Limited Liability Company is common and has many benefits it is not the only option you have. Everyone\u2019s situation is different, and every hair salon is different. Therefore one of the other options may be better for your business.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>So let\u2019s take a look at the <a href=\"https:\/\/www.thisuglybeautybusiness.com\/2019\/07\/how-to-choose-the-best-legal-business-structure-for-your-salon.html\">benefits and disadvantages<\/a> of these other business structures so you can make the best decision for your hair salon.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p style=\"text-align: center\"><strong>Check out our advice on creating your business plan\u00a0<a href=\"https:\/\/salonbusinessboss.com\/how-to-write-your-salon-business-plan\/\" target=\"_blank\" rel=\"noopener\">HERE<\/a>.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sole_Proprietorship\"><\/span><b>Sole Proprietorship<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignright size-medium wp-image-10499 lazyload\" data-src=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-300x170.jpg\" alt=\"What Is the Best Business Structure For a Hair Salon?\u00a0\" width=\"300\" height=\"170\" data-srcset=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-300x170.jpg 300w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-1024x579.jpg 1024w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-768x434.jpg 768w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-600x339.jpg 600w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536.jpg 1280w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/170;\" \/><noscript><img decoding=\"async\" class=\"alignright size-medium wp-image-10499\" src=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-300x170.jpg\" alt=\"What Is the Best Business Structure For a Hair Salon?\u00a0\" width=\"300\" height=\"170\" srcset=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-300x170.jpg 300w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-1024x579.jpg 1024w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-768x434.jpg 768w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536-600x339.jpg 600w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/536.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript><\/p>\n<p>In a Sole Proprietorships, there is not a line between your assets and your hair salon business. So as far as liability goes, if something happens at your business, your personal property is at risk as well.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>However, there are some advantages unique to using a Sole Proprietorship business structure that other business structures do not have, which include:<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<ul>\n<li>Easiest Business Structure to Start-Up<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>Cheaper to Start-Up<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>Personal Taxes Only<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<\/ul>\n<p>Sole Proprietorships are relatively easy to get and do not require as much paperwork and other requirements to get. If you are in a hurry to start your hair salon business and you have limited time and funds, a Sole Proprietorship may be a better option for your hair salon business structure.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Since there is no distinction between you and your hair salon business with a sole proprietorship, you pay the personal taxes that you make from your business. However, you will still be responsible for paying social security and Medicare taxes based on the money earned from your salon.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Partnership\"><\/span><b>Partnership<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Partnerships can work well for hair salons when done with the right people. Since you can split the financial costs with someone else, it can save you money. However, you still split the profits, too, so you may earn less with a partnership than you would with other business structures.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>With partnerships, you share the liability if something were to happen to your hair salon business. If something unfortunate were to happen, such as your hair salon business got sued, you could potentially lose your business, home, car, and other personal assets. Your partner in the company also may lose their personal property if something were to happen.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"C_Corporation_Business_Structure\"><\/span><b>C Corporation Business Structure<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The C Corporation business structure is the least common business structure among hair salons or other small businesses. This is because they are typically double-taxed on the income from the hair salon business and personal income. You are also a part of a corporation and have shareholders, which means being stuck in meetings and having less control of your hair salon business.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>However, with C Corporation business structures, you have the least amount of liability if something unforeseen were to happen, and in case your hair salon business was to get sued, you will not have to worry about losing any of your assets, such as your home or car.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"S_Corporation_Business_Structure\"><\/span><b>S Corporation Business Structure<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img decoding=\"async\" class=\"alignright size-medium wp-image-10500 lazyload\" data-src=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-300x170.jpg\" alt=\"What Is the Best Business Structure For a Hair Salon?\u00a0\" width=\"300\" height=\"170\" data-srcset=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-300x170.jpg 300w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-1024x579.jpg 1024w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-768x434.jpg 768w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-600x339.jpg 600w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537.jpg 1280w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/170;\" \/><noscript><img decoding=\"async\" class=\"alignright size-medium wp-image-10500\" src=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-300x170.jpg\" alt=\"What Is the Best Business Structure For a Hair Salon?\u00a0\" width=\"300\" height=\"170\" srcset=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-300x170.jpg 300w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-1024x579.jpg 1024w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-768x434.jpg 768w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537-600x339.jpg 600w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2021\/07\/537.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript><\/p>\n<p>S Corporation business structures share similar downfalls for hair salon businesses as C Corporations. You are a part of a large group and have less say in your hair salon business, but you also have less liability if something were to happen. Your assets are protected with an S Corporation business structure.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>One positive thing with S Corporations over C Corporations is you may be able to avoid double taxation on your profits. However, this is based on the income from your hair salon. If your hair salon makes over \u201cX\u201d amount of money, you may still be double taxed.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Choosing_the_Right_Business_Structure\"><\/span><b>Choosing the Right Business Structure<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is not necessarily only one correct answer when it comes to which business structure is best for a hair salon. Every business is different, and every business owner is different. Still, overall a Limited Liability Company business structure is most popular and has the most benefits for hair salons over the other business structures.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"Hair_Salon_Ideas_to_Promote_Your_Business_at_your_Events\"><\/span><strong><a href=\"https:\/\/salonbusinessboss.com\/hair-salon-ideas-to-promote-your-business-at-your-events\/\" target=\"_blank\" rel=\"noopener\">Hair Salon Ideas to Promote Your Business at your Events<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h2 style=\"text-align: center\"><span class=\"ez-toc-section\" id=\"Related_Questions\"><\/span><b>Related Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-9945 lazyload\" data-src=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-300x170.jpg\" alt=\"Do Salons Make a Lot of Money? -\" width=\"300\" height=\"170\" data-srcset=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-300x170.jpg 300w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-1024x579.jpg 1024w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-768x434.jpg 768w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-600x339.jpg 600w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138.jpg 1280w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/170;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-9945\" src=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-300x170.jpg\" alt=\"Do Salons Make a Lot of Money? -\" width=\"300\" height=\"170\" srcset=\"https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-300x170.jpg 300w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-1024x579.jpg 1024w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-768x434.jpg 768w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138-600x339.jpg 600w, https:\/\/salonbusinessboss.com\/wp-content\/uploads\/2020\/02\/138.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/noscript><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Can_you_change_your_business_structure_once_you_have_opened_your_hair_salon\"><\/span><b>Can you change your business structure once you have opened your hair salon?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Yes, however, make sure you discuss this process with either a lawyer or other financial or legal expert and do not just do it on your own. There may be many legal hoops to jump through. This may not be a quick and easy process either so be patient and prepared that even though this is possible it will take some time and will not just happen overnight.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_much_do_hair_salons_make_a_year\"><\/span><b>How much do hair salons make a year?<span class=\"Apple-converted-space\">\u00a0<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Hair salons make approximately <a href=\"https:\/\/thesalonbusiness.com\/are-hair-salons-profitable\/\">$19,100 per year<\/a>. This varies on location, services offered, and rates that you charge.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_much_does_it_cost_to_form_a_Limited_Liability_Company_business_structure\"><\/span><b>How much does it cost to form a Limited Liability Company business structure?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The cost to form a Limited Liability Company (LLC) varies based on the location of your business. For some states, <a href=\"https:\/\/www.nolo.com\/legal-encyclopedia\/how-much-does-it-cost-to-form-an-llc.html\">such as Kentucky<\/a> a<span class=\"Apple-converted-space\">\u00a0 <\/span>Limited Liability Company only costs about $15. Whereas in some states such as California it is much more expensive and costs around $810 for a Limited Liability Company (LLC). Your company must also be renewed every year which costs an additional fee. The annual renewal fee for a Limited Liability Company costs anywhere from $20 up to $100 and varies based on the location of your business.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Looking_to_start_your_own_Salon_Get_the_documents_you_need_to_get_organized_and_funded_here\"><\/span><b>Looking to start your own Salon? Get the documents you need to get organized and funded <\/b><a href=\"https:\/\/salonbusinessboss.com\/how-to-start-a-salon-startup-documents\/\"><b>here<\/b><\/a><b>.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><i><span style=\"font-weight: 400\">Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to opening a hair salon, there is a lot that goes into planning and starting up your business. Of course, you want to make sure you pick out all of the right equipment, have all of the correct licenses, and have the best location. However, have you thought about what business structure &#8230; <a title=\"What Is the Best Business Structure For a Hair Salon?\u00a0\" class=\"read-more\" href=\"https:\/\/salonbusinessboss.com\/what-is-the-best-business-structure-for-a-hair-salon\/\" aria-label=\"Read more about What Is the Best Business Structure For a Hair Salon?\u00a0\">Read more<\/a><\/p>\n","protected":false},"author":8,"featured_media":10497,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[26],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is the Best Business Structure For a Hair Salon?\u00a0 - Salon Business Boss<\/title>\n<meta name=\"description\" content=\"If you are looking to start a salon business. 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