| THE
BOOTH-RENTAL ANSWER BOOK! |
Yes, it's legal in the eyes of the Internal Revenue Service to rent
booths/stations in the salon. IRS classifies stylists that rent/lease, booths/stations as Independent
Contractors. The recently updated information contained in this book, cost well
over $1700.00 in time, accountant/ CPA fees, materials and research, phone calls, as
well as personal and group interviews with IRS personal. We wanted to be sure that
everything we wrote was as up-to-date as possible. If, for example, the IRS classifies you
as an employer, by not following their booth-rental (independent contractor) regulations,
you could be held responsible for ALL back taxes, (city, state and
federal) owed by the stylist you thought was an "independent contractor"
renting a booth!
 We’ve all been hit with horror stories about salon owners that
"got caught" by the IRS! In reality, they "got caught"
because they were doing something wrong, not following regulations, or maybe playing
games with the tax money! Don’t expect those that "got caught" to tell
you this. You’ve got to ask yourself WHY - if leasing stations/booths is
‘illegal’ - are so many salons doing it? Do they know something you
don't! This book has been updated 5 times since it was first published. The
IRS is interested in one thing; COLLECTING TAXES. That’s it. Nothing more.
When IRS regulations change, so do our publication/s. We try to stay right on top
of the new regulations. Why then are so many salons leasing stations/booths?
FOR SURVIVAL! For most salon owners to make a decent profit these days s/he has to
keep commissions below 42%! Who in the world can you get to work for 42% - besides
trainees? The salon owners that are paying more than 42% are usually working themselves
behind a chair! Sliding scale commission? Sure, find out what the sliding scale is!
Then, when the stylist realizes what s/he could be making renting a booth, s/he
quits 95% of the time.
You Get New Information and Phone
Numbers of:
• New IRS Form SS-8 with suggested answers
for you and your CPA to fill out and submit to IRS • The IRS auditing agent who spoke
before a group of salon owners and stylists, at a National Hairdressers Cosmetologists
Assn. meeting on booth-rentals • IRS tele-tax phone number for info on •
Small business tax workshops • Tax help for new businesses • Problem
Resolution Program- special help for problem tax
situations (every business owner should know this number!) • How
to apply for tax-exempt status • Local tax information for your area • The
proper way to declare tips • Bartering Income • Employee business
expenses (important if you have a corporation) • Bad debt deduction (bad checks
and "charge" clients") • Business use of home, car and
entertainment expenses • Educational expenses • Child Care credits • Highlights
of new tax changes • How to get an extension for your tax return • Business
record keeping (Important!) • How to choose a tax preparer • How to
calculate depreciation • Installment sales and equipment leasing • Targeted
Jobs credits
You Get Further Insights Into ...
• Whether or not you can set salon business
hours • Whether you, as a salon owner can set "standards of performance" • Must the stylist/booth-renter have their own salon key?
• Who sets the service prices for the booth-renters? • Can you -
as the owner - set a dress code for the salon? • Are contracts or leases
necessary for the booth-renters? • Learn what you as a salon owner can, and
cannot control! • Must each booth-renter have their own phone? •
What is the first thing the Internal Revenue Service looks at to determine if there should
be an audit of a booth-renting salon • Learn the IRS regulations so you can
decrease your chances of a booth rental salon audit • What actually
happens when a leasing/booth-renting - landlord/tenant relationship takes place, instead
of employer/employee? • Who collects the money in the salon, the
booth-renter, the owner, or the receptionist? • What a salon owner can, and cannot
control • How you can "fire" a booth-renter that doesn't work out •
The 20 points the IRS looks at to determine who's really in control, the
booth-renter or the salon owner • How you can get copies of: Revenue agents
Handbook • Copy of the new Taxpayers Freedom of Information Act
recently enacted by Congress • Who pays the receptionist? • Definition
of a "chair-renter" and a "booth-renter" • Definitions
of
an Independent Contractor and an Employee • What about a business license?
• What can you furnish a booth-renter?
You Get Over 91 of Your Questions on Booth-Rental
Answered
Right Now!
 If I was going to
booth rent,
then I would consider this book a must.
Janene B., Shelby, OH
13 year salon owner and manufacture's educator
Booth-Renter vs. Employee
|
"Hiring" stylists and nail techs as booth-renters instead
of employees, is getting much more risky. The IRS is on a
nationwide campaign to collect taxes and penalties from employers who pay workers as
independent contractors (booth renters), when the IRS considers them employees.
IRS computers are analyzing each person’s tax return. If you
turn up as a employer, you could be hit with back taxes, interest and penalties. This book
will help you determine if you’re doing things properly... |
Independent Contractor & Salon Owner's Handbook;
Did you ever wonder why the stylists that lease booths/stations
are
top-caliber stylists? This book will explain why, plus how you can hang on to them!
Like anything else, you gain from the experiences of successful salon owners, who are
renting booths. Find out why 'bothersome' clients are no longer your problem
as a salon owner. Learn why you needn't be concerned whether the stylists/booth renters
show up for work or not. Discover why it’s even better for you if they don’t
show up! This book tells you the allowable regulations you can set in your salon if you
decide to booth-rent! You’ll learn how these rules can help you get rid of
"troublemakers" (You can't fire them!). Know exactly what you can
"furnish," and what you can’t. If, after reading the book, and you
don’t think its worth at least twice the money, return it and
we’ll refund your money gladly.
 IN ADDITION TO ALL THE INFORMATION MENTIONED
(AND MORE), YOUR BOOK CONTAINS:
•
The NEW I.R.S.
Form SS-8 for you or your accountant to fill out and submit for a "Private Letter
Ruling".
• A copy of a favorable "Private Letter Ruling" for booth-rental from
I.R.S. to a salon owner
• 20 points IRS looks at to determine if you're an employer or a true booth-renter
complying with regulations
• 3 examples of what is booth-rental and what isn't, taken from Internal Revenue
Service manuals.
• Toll Free numbers to call if you have any questions about booth rental at any time.
|
two years ago I
opened Prior Hair Co. as a booth rental salon. I have 16 hairstylists and 2 manicurists. I
thank God for my good fortune, and you for guidance in my chosen profession.
