Start Your Dream Salon: Legal Steps to Grand Opening

I don’t know one person in this industry who doesn’t want their own salon. Not saying that there aren’t people who just enjoy doing hair and that’s it. I just don’t know them.

Since the beginning of my journey a goal of mines was to always have my own salon or suite/studio. Right now I have my own little suite/studio nestled in my home. And I know In-home salons have a bad reputation, but we all have to start somewhere. Plus it’s basically FREE and who can pass that up.

The most important thing though when setting up shop is to make sure that legally your business is solid. Trust you have no time for errors. Take the extra precautions and time to plan accordingly.

Patience will bring you success! And you are going to need to lean on that and your faith to get through. But no worries I did the research for you so you don’t have to. (I still recommend that you do more research).

Let’s create that successful business!

Legal Structures

Since we are just starting our business journey, we are only going to focus on the two small business legal structures. Both structures are easy to set up and have a low start up cost. They are: Sole Proprietorship or Limited Liability Company (LLC).

What is a Sole Proprietorship?

A sole proprietorship means that you are the only person who owns your business. This also means that you and your business are one person/entity. This is by far the easiest way to set up your business. It is also the most common way that many business owners get or have gotten their start.

Let’s look at some benefits and disadvantages of operating in this structure.

Benefits

• Low Cost. Your overall cost is low because you do not have to register a sole proprietorship. Reason: You are operating under your name and social. If you want to be a sole proprietorship but don’t want to use your name, you can choose to register a DBA. DBA stands for “Doing Business As”. You can do this on your Secretary of State website. Linked is Oklahoma’s website. https://www.sos.ok.gov/corp/filing.aspx
• Tax Filing. Filing taxes every year will be easy because you will file taxes normally. Just please go to a tax preparer that knows how to file business taxes. DO NOT TRY TO DO THIS ON YOUR OWN!

If you are looking for someone to help you with your taxes go to Kayla Buchanan. She is amazing! You can start the process at https://www.cognitoforms.com/FineFinancialSolutions50/FFS20252026TaxClientIntakeFormCorrect ***I do not receive commission for promoting this business. Just one small business helping another!***

• You run EVERYTHING. And last but not least you have total control when operating as a sole proprietorship.

Disadvantages

• Personal Assets. Remember when I told you that you and the business are one under this structure. Well the down fall to that is that if your business gets sued everything you own is at risk. This is the only major disadvantage that you would have to be concerned with.

What is a Limited Liability Company (LLC)?

A limited liability company is what I am working towards now. It is a business structure that allows you all the freedom like a sole proprietorship. The only difference is that with this particular structure your assets are protected.

So, let’s get into these benefits and disadvantages of an LLC.

Benefits

• Asset Protection. Your personal assets are protected when you have a limited liability company.
• Single or Multi- Member. You can go into this structure as the sole owner or you can start a business with a college or two.

Disadvantages

• State Fees. Depending on where you stay you might have some state related fees that you will have to pay. Please visit your Secretary of State website to see if there are any fees that you will need to pay. Linked is Oklahoma’s website https://www.sos.ok.gov/corp/filing.aspx

No matter which business structure you decide to work under, make sure it is the right fit for you.

Step – by – Step Checklist

Below is all the information you will need to set up your salon or suite/studio.

1. Your Niche. What is your business specialty?
2. Business Structure. Will your business operate as a Sole Proprietorship or Limited Liability Company (LLC)?
3. Business Name, Logo, and Color Palette. Choose what feels right to you. While opinions are good, at the end of the day your brand/salon needs to represent you. If you need help with creating a logo or choosing a color palette, try working with a graphic designer.
4. Business Plan. Look at your business plan as a guide to how your business will run. THIS IS IMPORTANT!!! Do not put this off. You can work on this throughout your timed of opening, as some information may not be available at first.
5. Register Your Business. Now that you have your business plan started and a name you want to register your business with the state. Applies to anyone who is deciding to operate as an LLC. Please go to your state secretary website to register.
6. Location. Where will your business be located. Now that your business is registered, you want to focus on where you will work. Will you be home based? Will you pay booth rent or rent a suite? Will you be purchasing a building?
7. Meet State Board, State, County, and City Requirements. No matter what you should always be following state board rules and requirements. Depending on which structure you are under you need to make sure you meet all state, county, and city requirements. This includes any design features and equipment and any inspections required.
8. Market and Open for Business. Market your business on social media platforms, advertise in the newspaper, pass out flyers and cards. Make sure all policies and your price list is printed out and visible for all customers and open for business.

Starting a business can be stressful and takes time and dedication. But I have faith in you to get started and succeed. I have given you the steps, now you have to put in the work. You determine if you succeed or fail. Let’s all succeed!

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