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Barber's /Independent Contractors/Booth Rental

Barbers / Independent Contractors /Booth Rentals
This type of arrangement most commonly occurs when a barber rents a chair (known as booth rental) but is responsible for everything from buying his/her own supplies tools, implements and paying taxes on earned income. Barbershop's should get away from this practice because it can be a minefield of potential long term problems for barbers, particularly when it comes to the IRS, and Social Security Benefits, under current tax laws many barbers have been working as employees without any benefits of that classification,To find out what the IRS says about the relationship between an employee a (booth renter) independent contractor visit  If your renting a booth without a business license and barber license  you're actually losing out on tax breaks and long term benefit's, that an accountant can show you how you're  losing since you're self employed.
They're many good reason's to report all your income.
Increased Social Security Benefits the more you pay the more you get back.
Improved financing when applying for mortgage, and other loans.
Increased workers compensation should you get hurt on the job.
                             "Wealth is created through knowledge."
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36 Comments to Barber's /Independent Contractors/Booth Rental:

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Cameron Johnson on Tuesday, August 28, 2012 3:49 PM
This is some very good information, I plan to open a barbershop based on a commission pay scale, I'm currently putting together a business plan along with my accountant and lawyer, my barber's will have benefit's,my commision will top out at 70%, with the first year starting at 60%. Please post more interesting subject's of this content.
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If your renting a booth without a business license and barber license you're actually losing out on tax breaks and long term benefit's, that an accountant can show you how you're losing since you're self employed.
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