How Many Types of Salon Ownership Are There? Salon Ownership Types and Structures

by

There are five types of salon ownership:

  1. Sole proprietorship
  2. Partnership
  3. Limited liability company (LLC)
  4. S corporation
  5. C corporation

Key Characteristics

  • An LLC combines the characteristics of corporations and partnerships.
  • S corporations have special tax status to help save money.
  • C corporations provide extensive liability protection but necessitate intricate operating rules.

Operating a Salon

Main Expenses

The top two salon expenses are:

  • Labor
  • Inventory

Booth Rental and Employee Arrangements

  • Independent contractors rent booths.
  • Booth renters are not employees, thus booth rent can be deducted from taxes.

Customer Programs and Hairstylist Skills

Customer loyalty strategies, such as punch cards that offer a discount on the 11th visit for every 10 previous visits, can foster repeat business.
Essential skills for hairstylists include:

  • Creativity
  • Customer service
  • Listening
  • Stamina
  • Tidiness
  • Time management

Leave a Comment