In New Jersey, barbershops cannot lease or sell chairs to non-employees. A salon can engage a hair stylist as an independent contractor under a Rent-A-Chair Agreement where the stylist rents a chair and pays the salon owner. Salon rental costs depend on location, amenities offered, and high-end salons in trendy areas charge the most.
New Jersey permits chair/booth rental for cosmetology services. Hair stylists cannot currently work from home. Cosmetology school in New Jersey requires 1,200 training hours. Estheticians can provide skin care and makeup services. Responsibilities should be detailed in rental agreements. Perks help retain quality stylists.
To operate legally, salon suite owners should apply for an establishment license from the municipal building department. A license allows legal rental of the salon suite. If operating an unlicensed salon suite, owners risk being shut down and fined by authorities. Getting a license shows commitment to the business and helps attract clients who might otherwise avoid unlicensed salons.
Salon chair rental allows use of premises for a fee plus commission. The stylist rents space and gets amenities as an independent contractor running a business within the salon’s business. In most states, salons cannot legally rent booths. If legal, booth renters pay taxes as independent contractors. Commission-based salons have high expenses.