How to start the Salon Shop in New York, USA: Procedure, Documents required, Cost, What type of License to obtain?
Procedure to start salon shop in New York
- Create a plan for the type of salon you will open.
- Register your business : . LLCs, Corporations, and Limited Partnerships register with NY State (visit http://on.nyc.gov/state). General Partnerships and Sole Proprietorships register with the County Clerk (visit http://on.nyc.gov/clerk).
- Apply for an Employer Identification Number (EIN), also known as a Federal Tax ID Number. This is used to identify your business. If you are a sole proprietor, you may
be able to use your Social Security Number instead. Visit http://on.nyc.gov/ein.
- The insurance you will require, such as workers’ compensation, liability, and disability insurance, should be researched. Some are necessary for licences and permissions.
- You will need to get a Sales Tax ID from NY State. Apply early to avoid delays in receiving other permits. Check here http://on.nyc.gov/taxid.
- Find a location check here for more details : http://on.nyc.gov/zoning
- To assess your area and schedule any building work. The NYC Department of Buildings only accepts plan submissions from licenced architects and engineers. Regulations from the NYC Department of Buildings, NYC Department of Health, and NYC Fire Department must be followed while making changes to your area.
- Before you sign, have a licenced professional and a lawyer assess your location to ensure that it is suitable for your company.
- For further information check
Documents Required
- A detailed plan outlining your salon’s objectives, target market, competition analysis, marketing strategies, financial projections, and operational structure.
- Certificate of Incorporation or Certificate of Authority: If you’re establishing a corporation or LLC, you’ll need to file these documents with the New York State Department of State.
- Assumed Name Certificate (DBA): If you’re operating your salon under a name other than your legal business name, you may need to file a DBA with the county clerk’s office.
- Salon License: Obtain a salon license from the New York State Department of State. Specific requirements and fees may vary depending on the type of salon services you offer.
- Cosmetology License: Ensure that all hairstylists and beauty professionals working in your salon are licensed by the New York State Division of Licensing Services.
- Apply for an EIN from the Internal Revenue Service (IRS) if you plan to hire employees. This number is used for tax purposes and to open a business bank account.
- Liability Insurance: Obtain liability insurance to protect your business from potential claims or damages.
- Workers’ Compensation Insurance: If you have employees, you’ll generally need workers’ compensation insurance to cover workplace injuries.
- If you’re renting a commercial space for your salon, you’ll need a lease agreement that outlines the terms and conditions of the rental, including the rent amount, lease duration, and any additional provisions.
- Client Consent Forms: Create consent forms that outline the risks and potential outcomes of various salon services. These forms should be signed by clients before they receive any treatments.
- Employment Contracts: If you have employees, draft employment contracts that outline the terms of employment, including job responsibilities, compensation, and termination clauses.
- Financial Projections: Prepare financial statements, including profit and loss statements, balance sheets, and cash flow projections.
- Business Bank Account: Open a dedicated business bank account to keep your personal and business finances separate.
Cost to open a salon
- The average cost is $100,000 to $500,000
Type of License
- Salon Establishment License: This license is required for all types of salons in New York and is issued by the New York State Department of State. It covers the overall operation of the salon.
- Cosmetology License: If you plan to offer hairstyling, hair coloring, or other cosmetology services, you and your staff will need to obtain a Cosmetology License from the New York State Division of Licensing Services. This license ensures that individuals have completed the necessary training and have passed the required exams to practice cosmetology.
- Nail Technician License: If you intend to offer nail services such as manicures, pedicures, and nail extensions, you and your nail technicians will need to obtain a Nail Technician License from the New York State Division of Licensing Services. This license ensures that individuals have received appropriate training and have met the requirements to provide nail services.
- Esthetician License: If you plan to provide skincare services, including facials, waxing, and other esthetic treatments, you and your estheticians will need to obtain an Esthetician License from the New York State Division of Licensing Services. This license ensures that individuals have completed the necessary training and have met the requirements to perform esthetic services.
- Massage Therapy License: If you wish to offer massage therapy services in your salon, you and your massage therapists will need to obtain a Massage Therapy License from the New York State Education Department. This license ensures that individuals have completed the required training and have passed the necessary exams to practice massage therapy.