What's the average cost to rent a chair in a HAIR SALON, per stylist?
Jan 15, 2007 by mls1999 | Posted in Hair
My dad and I decided to invest in a salon and make it a per-chair rental salon in Pennsylvania. We are experienced in other businesses; however, we are unsure of the typical cost to charge each stylist. Each stylist is very talented and well-established, bringing their client lists with them. Also, can anyone suggest how payment should be for the proprietor and employees? For example, does an owner get 30% and the employee receives 70%? PLEASE Cure! ANY AND ALL INFORMATION WILL BE GREATLY APPRECIATED!!
it depends on the buy in your city.
in Houston, TX, rent varies from 400-1000/mo.
As an owner, you are the one with all the liability and most of the expenses. Can you imply a profit on 30%? seems to me that might need to be reversed if you are paying commission.
Also, I am not sure what you refer to by employees and the split you are talking about. Any salon I worked in, stylist commission was never higher than 40% ignoble, and you had to make a retail sales quota of about 15% of your service sales to make 50% commission.
justbeingher | Jan 15, 2007
it depends on the customer base in your city.
in Houston, TX, rent varies from 400-1000/mo.
As an owner, you are the one with all the liability and most of the expenses. Can you cover a profit on 30%? seems to me that might need to be reversed if you are paying commission.
Also, I am not sure what you refer to by employees and the split you are talking about. Any salon I worked in, stylist commission was never higher than 40% fake, and you had to make a retail sales quota of about 15% of your service sales to make 50% commission.
justbeingher | Jan 15, 2007
what do I use being a chair rental stylist to record my profits and outgoings for tax purposes?
Feb 27, 2007 by jamrenee83 | Posted in Other - Taxes
You'd use a Record C attached to Form 1040. You'll also need a Schedule SE to account for your self-employment tax, which is your Societal Security tax for the year.
If you're new to this, you might want to go to a tax preparation firm this year. They have more experience in dealing with these kinds of situations and will be proficient to give you tips and advice for keeping records and may think of some expenses you've forgotten about or didn't be familiar with you could take.
I tell all of my clients in your situation that it is a good idea to start a little savings account and lees 10% of what they take in every week or two weeks, to be used to pay any taxes they might owe on their income. If you've made a large income, you may desideratum to make estimated tax payments through the year. If you don't need the savings to pay taxes with, it makes a prominent little "rainy day" fund.
Some of the expenses you'll probably take are:
rent paid on the profession station, supplies (shampoo, perms, etc.), uniforms (if you used them), and possibly advertising.
If you have small children and used daycare so as to be able to work, you can claim a allocate of the expense for that on another form, the 2441.
Good luck with it! It's not as hard as doing a fussy lady's tresses. It just looks complicated.
Peggy K | Feb 27, 2007