User ReviewedHow to Start a Barbershop Starting your own business is a big decision. However, if you are good at what you do and have thought about starting your own barbershop, consider the following: Everyone needs a haircut. A good barbershop can do well, even in a recession, because hair will not stop growing no matter what the economy does. Once you get your barbershop business started, it is relatively easy to maintain. You can start a barbershop by following just a few steps. Get a barber's license if you do not have one before you open a barbershop. Do research on local legal conditions that you must meet to open a barbershop by going to your state government's website. Apply for a business license. Make a budget for your business and ensure that you have funds to cover all the necessary start-up costs, including money for the lease, equipment, supplies and wages. Write out a business plan that includes your future goals, a time line, your budget and an exit plan in case the business fails.
Go to your state's Department of Revenue website to find out the state's tax rules and to fill out forms to get your Sales Tax ID number. Locate a good place for your barbershop and work out terms for a lease. Purchase all necessary equipment and supplies for your barbershop business and hire employees if you need to. Research other shops to get a good idea of how much you should charge and what services you should provide to be competitive. Do some marketing to make sure you get your barbershop's name out there. Put your business plan into action and open your doors for business. Show more unanswered questions Do your research when purchasing equipment and shop around to get the very best price. Make sure you have a good calendar system set up to schedule your appointments. Check out the Chamber of Commerce to get a wealth of information on requirements the local government may have to open a business in your state, city and county. Program Operations Manual System (POMS)
TN 7 (08-10)RS 02101.092 Employment Status of BarbersCitations:IRS Revenue Rulings 57-110 and 70-488A. Employee status of barbersSome barbers work as employees of shop owners on a salary basis, and generally there is no question about their employment status. For instance, barbers who perform services under a lease agreement in a barbershop that has the right to direct and control the way they perform their services are employees of the shop. However, some barbers work under percentage agreements, which may raise questions about their services.Under the typical percentage agreement, a shop owner provides the barber with a space or chair. The barber furnishes razors, combs, scissors, and sometimes uniforms, but the owner provides all other equipment and supplies. Barbers work with other barbers in the shop. To consider the space and facilities the owner furnishes, the barber agrees to let the owner retain a certain percentage of the earnings, except for tips. Either party may terminate the relationship on short notice.
The owner may terminate the relationship if the barber fails to conform to the provisions of the agreement or the shop rules concerning work hours, uniforms, smoking, wasting time, etc.The barber's union and shop owners may impose the shop rules. The barber does not advertise, and the barber's name does not appear in the title of the shop. Those who work under such agreements, or under substantially similar conditions, are employees.Factors that may indicate when a barber is an employee:the barber does not handle his or her sales receipts;the barber does not make his or her appointments;the barber has a required work schedule or hours;the barber must wear a uniform;the owner provides towels or smocks; andthe owner provides training.B. Independent contractor status of barbersAfter serving apprenticeships and gaining experience, many barbers set up their own shops and establish a personal following. They usually rent a shop or use a room in their own homes; install a barber chair, the necessary tools, equipment, and materials;
and make themselves available to the public to perform services such as haircuts, shaves, shampoos, scalp treatments, and facial massages. Quite often, they install two or more chairs in their shops and hire other barbers to help them, either as employees or under rental arrangements. These shop owners are clearly independent contractors. Other barbers work independently under agreements whereby they rent a barber chair from a shop owner for a flat sum (per week or month). They usually work full time, but are not required to do so. However, they generally try to arrange their absence from the barbershop to occur when the shop owner is present. They may set their own prices or abide by union standards, and they keep the entire amount of earnings. They use their own tools, but often the shop owners provide linens and other supplies. The shop owners do not require the barbers to abide by the rules and regulations. They are responsible only for themselves and work when they please.A barber may be an independent contractor when he or she:has a key to the shop;buys their own products;sets their own work schedule;
andhas their own business phone number.C. Principal factors indicating an employment relationshipThe principal factors that indicate an employment relationship are:the employer furnishes facilities and equipment to the barber;the barber receives payment of an hourly wage or salary, or on the basis of a percentage of the receipts taken in;the right of each party to terminate the relationship at any time without being legally responsible for damage;the barber is restricted on hiring a helper or substitute;the barber lacks business expenses and andthe barber integrates his or her services into another business.Consider the other factors in RS 02101.030 - RS 02101.068. They are less important than those above because of traditional customs and general practices in this field. For example, barber associations and unions may set prices and hours of work. Employees and independent contractors need a license to operate. The State or city health departments prescribe rules with respect to sanitary conditions.