What is the difference between a sole proprietorship and an LLC? I answer that question on this weeks episode. There are several similarities between the two as well as a few major differences.

On today’s show, I am going to discuss the new law that was handed down by the California supreme court which threatens to abolish the booth rental model and how the law may also affect salons that host traveling stylists.

I think it’s important that salon owners in every state pay close attention to how this law evolves over time because if whatever the state of California is trying to achieve becomes successful according to their measurements, whatever those measurements are, other states will eventually attempt to adopt the same law.

The new law has essentially stopped hair salons from being able to hire independent contractors (booth renters), and instead, salons are now required to classify their workers as employees based on the "ABC Test."

This is a HUGE change and will change how hair salons and other beauty professionals operate and mange their businesses moving forward.

This live webinar discussed how to calculate your own quarterly estimated tax payments. Estimated taxes are due each quarter and all self-employed individuals are required to make quarterly payments unless you fall outside of the requirement.

I discussed who is required to make quarterly payments and those that are not required to make payments

Click the link to access the spreadsheet I created that you can use to calculate your estimated taxes while at the same time recording your income and expenses.

CLICK HERE TO ACCESS CLASS AND SPREADSHEET

COVID19 has brought to the fore-front the theme of the podcast that I have been hosting for years, and that is the importance of treating your business “like a business” and not like a hobby, regardless of whether you are a full-service salon or a booth renter behind the chair. I’ve always said, If the government treats you like a business, you are a business, and therefore, you should treat yourself like a business.

One of the most important decisions you make when starting your business is the legal structure you choose. When I say legal structure, I am talking about choosing between a Sole Proprietorship, S-Corp, Partnership, C-Corp and also understanding what it means to be an LLC especially a single-member LLC

Today I’ll be taking about three painful IRS penalties and how to avoid them. They are:

a. The underpayment penalty
b. The failure to pay penalties
c. The failure to file penalty

If you are interested in attending my webinar on Monday, April 8th click the link to register. How To Calculate Your Quarterly Estimated Taxes On Your Own.

As a former hairstylist and salon owner, I had to think of creative ways to increase my bottom line.

Now, as a consultant to hair professionals, I sometimes have to suggest different ideas on how to increase sales so they can become more profitable.

In this podcast, I talk about how I used retail to increase my salon profits.

What is the CARES (Coronavirus Aid Relief and Economic Security) Act? The CARES Act is the largest economic stimulus package in the history of the United States. It includes approximately two trillion dollars to help people and businesses impacted by COVID-19. Many beauty professionals are asking “What does this mean for me?”

How does the CARES Act impact the beauty industry? The act includes several provisions that impact citizens of the united states, businesses, and business owners including beauty industry professionals. 

Beauty industry professionals consist of salon owners, booth renters, commission stylists (W2 employees), and independent contractors most of which are self-employed and/or independent contractors.

On this podcast, I am only going to focus on four of the provisions that my clients ask about the most

1. The rebate or stimulus checks
2. The Pandemic Unemployment Insurance
3. The payroll or paycheck protection plan
4. And the Economic Injury Disaster Loans

I will be discussing:

• Legal business structures salons can choose from
• Starting a salon from scratch vs buying an established salon
• Raising Startup or operating capital for your salon
• Different types of accounting systems for your business
• And much much more....

Remember, this show is actually a recording of the webinar. I hope you enjoy it and don't forget to download my app Proft and Beauty from the Google or Apple store.

How is self-employment tax calculated? - Most W2 employees don’t realize that their employer matches the 7.65% withheld from their paychecks. As I mentioned earlier, we are all required to pay 15.3% of our gross income into Medicare and social security. W2 employees only pay half of the 15.3% while their employer pays the other half, for a grand total of 15.3%. For those of us that are self-employed, we do not have an employer to pay half of our Medicare and social security payments, therefore, we are required to pay the entire 15.3% ourselves. Find out how self-employment tax is calculated and everything else you need to know.

If you have ever wondered what you need to do or what you need to know in order to start your own hair product or cosmetic line, you should definitely listen to this week's episode where I speak with Margaret Haven of Haven Research Center. We discuss everything from how to get started, product ingredients, and the importance of packaging and marketing your product. It’s a long discussion, but there are so many important and informative nuggets you will learn.

Today's podcast was a live recording. Tax day is here and I'm not ready to file my taxes nor do I know how much money to send the IRS with my extension. Let's talk about it. AND Last-Minute Tax Deduction Check List For Hair Stylists & Salon Owners

QuickBooks Online Accounting Software For Beauty Professionals

This Podcast is based on a YouTube video I created where I spoke about the general  options beauty industry professionals have when picking QuickBooks online for their bookkeeping needs.

The information provided in the video is general enough to help get you started with your decision making.

Click this link to purchase any version of QuickBooks Online and QuickBooks Self-employed for 50% of for 6 months. https://quickbooks.grsm.io/DesarieAnderson

Here is the link to my website if you would like to see the types of services, I offer https://www.accountants4hairstylists.com/

Here is a link to my online courses which includes a video on how to upload your salons chart of accounts into QuickBooks online https://profitandbeauty.school.invanto.com/

Now that businesses are starting to receive their PPP loans, it's time to understand what is required in order for your loan to be forgiven. You want to try to avoid any unwelcome surprises when you apply for loan forgiveness.

On Tuesday, April 14, the Small Business Administration (SBA) issued several important clarifications to its rules regarding the Paycheck Protection Program (PPP) in respect to the following:

1. Calculation of maximum loan amount for self-employed individuals
2. Use of PPP loan proceeds by self-employed individuals.
3. Documentation for loan forgiveness by self-employed individuals.

Website: https://accountants4hairstylists.com/

Instagram: @desarieanderson

Facebook: https://www.facebook.com/profitandbeauty/

I've been receiving several questions from salon owners asking how they can go about writing off the rent they are not receiving from their booth renters due to COVID19.

Rather than answer each person individually, I decided to record a short video explaining how it works.

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