PROFESSIONAL LICENSE
Running a business means you’ll have to file various business licenses.
To be legal in the state of Texas, you’ll need a license for your profession. Please note, licensed cosmetologists no longer need to apply for a booth rental license when leasing a salon suite. However, you will need to have a "mini-salon" license in addition to your operator's license, plus a current Cosmetology Rules & Law book. Barbers, Esthetician, Manicurist, Laser Techs and others may have special licenses and requirements.
It is up to you to know and maintain all applicable licenses, so visit the TDLR, or applicable, website to obtain these licenses. These websites also contain information regarding health inspections. To avoid fines or (even worse) being shut down by the health department, make sure your salon is sanitary and follows the guidelines laid out by each department.
STYLISTS, ESTHETICIANS, MANICURISTS
www.tdlr.texas.gov/cosmet/cosmet.htm
BARBERING
www.tdlr.texas.gov/barbers/barbers.htm
MASSAGE THERAPISTS
www.tdlr.texas.gov/mas/mas.htm
LASER HAIR REMOVAL
www.tdlr.texas.gov/las/las.htm
You are responsible for obtaining the required licenses for your services. If you need assistance please let us know.
SALES TAX ID
Paying taxes as a small business is different than doing so as an individual, so be sure to figure out what you need in advance. To save yourself time and trouble, consider enlisting the help of a CPA while you set up your business. As an independent business, you are responsible for confirming, collecting and paying any required state, county and local sales tax.
In Texas, small businesses are usually required to pay sales taxes quarterly on the 20th day following the quarter-end, and the tax rate is currently 8.25%. At this time, it is not necessary for you to collect sales tax for your cosmetology services; however if you decide to sell retail products, then you must collect and pay applicable sales taxes.
There is a small, one-time fee to obtain your tax permit and you may apply online. Visit
www.window.state.tx.us/taxpermit to obtain a sales tax ID.
TRAVIS COUNTY DBA
Your business structure can be a complicated decision and you should consult both tax and legal advisors for specific advice and assistance. The laws are different for "naming" depending upon whether you operate under your name or set up a corporation (C-corp, S-corp or LLC), partnership or Assumed Name, commonly referred to as a "Doing Business As." Assumed name certificates are usually valid for 10 years. If you do not incorporate, or simply operate under your name, you will probably need to obtain a DBA from the Travis County Clerk (
www.traviscountyclerk.org). Do a quick search for "Assumed Names."
Incorporating allows you to operate anywhere in the State of Texas as long as the corporate and business name are the same, e.g. Jane's Salon. If you incorporate under a name other than the business name, e.g. Jane Doe Inc., or LLC, and the business name is Jane's Salon, then you must also file an assumed name with both the Secretary of State and the Travis County Clerk.
Again, we recommend that you consult your CPA or attorney for specific information and assistance with forming any type of legal structure. Another useful resource is LegalZoom (
www.legalzoom.com).
INSURANCE
You're in business for yourself, so protect yourself with General Liability Insurance, including personal injury and property damage. Refer to section 6.3 of your lease agreement for specific terminology and requirements.
You must obtain liability insurance before moving in. Additionally, your insurance company needs to provide a compliance certificate listing Salon Management of Austin, DBA My Salon Suite, as an additional insured with a waiver of subrogation.
You are free to use any licensed insurance company in Texas, but if you do not have an insurance agent, feel free to contact a My Salon Suite business partner for a quick and easy insurance quote. Our partners are familiar with My Salon Suite and the needs of our tenants or have written policies for other salon owners:
Bryan Penn
Reata Insurance Group Inc.
Note: Knowledgable about our coverage requirements and very reasonable professional protection, including income protection.
(512) 420-9333
email
Luci Temple
Farmer's Insurance
Note: Knowledgable about our coverage requirements and very reasonable professional protection, including income protection.
(512) 913-9637
email
Angela Nielsen
Watkins Insurance Group
Note: Comprehensive professional coverage.
512-637-4242
email
Susan Ledoux
Hiscox USA
Note: They have specific coverage for beauty industry.
888-202-3007
website
Salon Spa Association
Note: Trade organization with very basic coverage. May need specific riders to meet our additional insured and waiver of subrogation coverage requirements.
website
Alternative Balance - The Salon & Spa Association
Note: Another trade organization familiar with our coverage requirements. May need specific riders to comply with additional insured and waiver of subrogation needs.
800-871-3848
website
