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Starting a small business (nail salon)

Asked by: Hoa Lee - 21 March, 2013 My name is Lee. I am thinking of start a small business, like a nail salon. Can you help tell me I should go to incorporation. If so, all workers in the salon must be employees and/or independent contractors?
Answered by: Robert Kowalski - 22 March, 2013 Lee,

Congratulations on your new business! Now to your questions - incorporating or organizing your business as LLC is a very good idea, since nail salon is not the safest business from liability point of view. You want to limit the liability of the business to itself as much as possible, so Corporation or LLC is the right tool for you.

As far as workers go - I believe if you employ them on permanent basis they should be listed as W-2 employees, not contractors. I know there are various relationships when salons have independent contractors working on the premises and providing additional services, however your permanent employees providing the main service should be on payroll.


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