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Friday, 24 September 2021 11:40

Financial Forecasting: Skin Care Business with Room Renters

Written by   Courtney Sykes

Skin care professionals in 2021 are seeking independence and job satisfaction as they navigate through their passion in providing excellent skin care treatments to their clients. Business owners have two options when it comes to involving individuals within their industry. They can either employ licensed professionals as W2 employees or rent out additional treatment rooms to individuals that hold their own LLC, liability and property insurance, Federal Tax ID Number (EIN), state withholding number, and county business license. Room renters may also need a salon license to operate within the treatment room they are subleasing from the business owner. The option of contracting 1099 employees is not applicable in the salon world; it actually counts as tax evasion by the business owner which is a huge liability. 

Spa owners must understand the importance of tax compliance as a leader in business. Setting up individuals as W2 employees and contributing to their tax deductions as employer matching is required by federal law; it is part of the responsibility of employers everywhere. If a spa owner does not desire to have employees that report to them, does not wish to assist in providing services for income generation for the business, or does not want to handle human resources in any capacity, room rental may be a viable option. 

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Courtney SykesCourtney Sykes is the Chief Administrative Officer of Southeastern Esthetics Institute and licensed aesthetics instructor in South Carolina. Sykes also is the creator of Courtney Sykes Molecular Anit-Aging, a clinical skin care line for consumers and professionals. Her passion lies in creating real change in the aesthetics industry, assisting her students to obtain gainful employment, and make a difference in the lives of their clients. Sykes specializes in a science-based approach to skin health and education. Her primary focus is chemical peels, laser treatments, eyelash extensions, micropigmentation, and cosmetic lasers. Her background in medical spa management has led her to nationally-accredit the largest, licensed aesthetics school in South Carolina – Southeastern Esthetics Institute. 

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