Ready to snip your way to success with your very own hair business? Before you start styling those fabulous locks and creating stunning looks, let’s talk about forming an LLC.
Setting up an LLC might sound as daunting as mastering the perfect balayage, but it’s actually simpler than you think. From choosing a chic business name to filing the necessary paperwork, we’ve got you covered.
For a seamless, hassle-free experience, I highly recommend Tailor Brands and Northwest Registered Agent formation tools that make the process as smooth as a silky blowout.
Let’s dive in and get your hair business looking as sharp as your best pair of shears.
Do I Need an LLC for My Hair business?
Starting a hair business can be exciting, but it’s important to consider the legal structure. An LLC (Limited Liability Company) is often a good choice for hair salons and stylists.
The main reason I recommend an LLC is personal asset protection. This means my personal belongings like my house or car are separate from the business.
What are the Benefits of Starting an LLC for Hair Business?
Starting an LLC for your hair business offers key advantages. It protects your personal assets, provides tax benefits, boosts your credibility, and secures your business name.
Personal Asset Protection
As a hair stylist, I know accidents can happen. An LLC shields my personal belongings from business debts and lawsuits. If a client slips and falls in my salon, my home and savings stay safe. Only the LLC’s assets are at risk.
This protection gives me peace of mind. I can focus on growing my business without worrying about losing everything.
Pass-Through Taxation
Tax time is simpler with an LLC. Profits “pass through” to my personal tax return. I don’t face double taxation like corporations do. This setup can save me money.
Enhanced Credibility and Professionalism
Adding “LLC” to my salon’s name boosts its image. Clients see me as a serious business owner. They trust me more with their hair and beauty needs.
This status can lead to more customers and higher-paying jobs. It might help me land contracts with fashion shows or wedding planners. An LLC shows I’m committed to my craft and running a legit operation.
Protection of Your Business Name
Registering my LLC locks in my unique business name. No one else in my state can use it. This protects my brand and helps me stand out.
How to Establish an LLC for hair business
Setting up an LLC for your hair business involves several key steps. This process protects your personal assets and provides tax benefits. Let’s go through each step to get your hair business LLC up and running.
1. Choose a State to Register LLC for hair business
I recommend registering your LLC in the state where you’ll do most of your business. This keeps things simple and avoids extra fees. Some states have lower costs or fewer regulations, but for a hair business, local registration usually makes the most sense.
2. Choose an LLC Name
Pick a unique name for your hair business LLC. It must include “LLC” or “Limited Liability Company.” Check your state’s database to make sure the name isn’t taken. Avoid names that sound too similar to existing businesses.
3. Appoint a Registered Agent
A registered agent receives legal papers for your LLC. You can be your own agent, but I’ve found using a service like Tailor Brands and Northwest Registered Agent makes things easier. They handle paperwork and provide a business address, which is great for privacy.
4. File Articles of Organization
This official document creates your LLC. File it with your state’s business division. Include your business name, address, registered agent info, and member names. Some states call this the Certificate of Formation.
5. Obtain an Employer Identification Number (EIN)
An EIN is like a social security number for your business. You’ll need it to open a bank account, hire employees, and file taxes. I got mine for free through the IRS website. It only took a few minutes to apply and I received the number instantly.
6. Open a Business Bank Account
Separate your personal and business finances. This protects your personal assets and makes accounting easier. I shopped around for a bank with low fees and good online services.
7. Register for Taxes and Licenses for hair business
Check local requirements for hair salons. You’ll likely need a cosmetology license and maybe a business license. Register for state and local taxes too. This might include sales tax if you sell products.
3 Best LLC services For hair business
I’ve researched several LLC services and found three that stand out for hair businesses. These companies offer different features and pricing to help salon owners form their LLCs quickly and easily.
Tailor Brand (Editors Choice)
Tailor Brands is my top pick for hair businesses. They offer LLC formation starting at $0 plus state fees. I love their AI-powered branding tools, which are great for creating a salon logo and business cards. Their user-friendly platform makes it simple to form an LLC, even if you’re not tech-savvy.
Tailor Brands provides a range of affordable packages. Each one includes different services like domain registration and website building.
NorthWest Registered Agent
NorthWest charges $39 plus state fees for LLC formation. I like their focus on privacy protection. They act as your registered agent, keeping your personal address off public records. This is useful if you run your salon from home.
NorthWest offers same-day filing in many states. They also provide a year of free registered agent service.
MyCompanyWorks
MyCompanyWorks has a solid reputation for fast service. They offer a 100% satisfaction guarantee. Their basic package includes LLC formation and a custom operating agreement. I appreciate their step-by-step guide for completing the LLC process.
They provide same-day processing if you order before 3 PM EST. Their Startup Wizard tool helps track your progress in setting up your LLC.
