For beauty & salon businesses

Yes - beauty, salon, and personal-care businesses typically require BOTH state-level professional licensing (cosmetology, esthetics, barbering) AND local business licenses. Requirements vary by state; California has separate licenses for cosmetology, esthetics, electrology, manicuring. Each state's Board of Cosmetology sets standards.

LLC is almost always the right choice. Salon work involves physical client contact, sharp tools, chemicals, and slip-and-fall risk. The LLC liability shield (combined with proper professional liability insurance) protects personal assets if a client makes a claim. Sole proprietorships expose the owner's home, savings, and personal assets directly.

Booth renters are independent contractors of the salon owner and W-2 employees of nobody. The salon owner issues 1099-NEC to each booth renter at year-end if total payments exceed $600 (federal) or $50 (some states). Salon owner does NOT withhold tax for booth renters and does NOT pay payroll tax on their earnings - but should issue proper paperwork.

Standard stack: general liability ($1M-$2M minimum), professional liability (covers malpractice claims like burns, allergic reactions), product liability (if selling retail products), workers comp (if W-2 employees). Costs typically $50-200/month for a small salon. File.Business coordinates with insurance partners for the beauty industry.

Yes. Continuing education required to maintain your cosmetology, esthetics, or barbering license is fully deductible. Training to expand into new services (microblading certification, lash extension certification) is deductible if the business already operates in that area. Brand-new education to ENTER the field is typically NOT deductible - that's a capital expense.