In today’s episode, I’m going to be talking about everything taxes, especially what you should expect in 2022. Now, I realize this is not a favorite topic for most hair salon owners. However, your salon’s tax obligations can be confusing, and they do change frequently. Thus, it’s important to take time and review the latest tax laws and codes.
The reason most of us don’t like the subject of taxes is that frankly, it’s just confusing.
So, let’s first ease into this subject by taking a little walk—perhaps a refresher course for experienced salon owners and a good education piece for newer salon owners—through exactly what your hair salon business taxes are.
First, hair salon taxes vary based on the structure of your salon.
When you form your hair salon business, it’s important to be aware of the different legal structures that exist since each structure has different tax implications. For example, sole proprietorships, S-corporations, C-corporations, and limited liability companies (LLCs) are all different legal structures with different tax requirements.
Once you determine which legal structure best suits your needs, you can better understand your specific tax situation. So, in this episode, I’m running through the differences in these various business structures and what that means from a tax standpoint for hair salon owners.
Episode Highlights
[02:19] Sole proprietorships.
[03:21] S-corporations.
[04:40] C-corporations.
[05:58] Limited liability companies (LLCs).
[08:38] How taxes vary based on the structure of your hair salon.
[14:18] Common missteps hair salon owners often make when it comes to filing and paying taxes.
[17:11] Brett’s top five tax tips for hair salon owners.
[19:03] Tax deductions hair salon owners may want to take advantage of in 2022.
Resources
IRS Small Business and Self-Employed Tax Center
Looking for more tips for how to grow, scale, and ultimately sell your hair salon business? Check out our other Unchained From the Chair podcast episodes.
