If you are the sole proprietor of a Hair Extensions Store you have to pay self employment tax. Consider to incorporate a corporation to reduce your tax burden and to keep more money to grow your hair business.
If you start a new hair extensions business, this means more than just finding a hair supplier and sell to your clients. It also entails dealing with various amounts of paperwork and compliance at the state, federal and local levels. On top of that, it is good to be prepared if your business grows from home based to a greater and more complex enterprise. It’s time to consider the incorporation of a LLC.
If you are self-employed for tax purposes, you follow another tax regime than people who are working for a chief. But you have to be careful, sometimes in the hair industry salon owners offer self-employed workers to work for them, but except for the monetary reimbursement, the labour circumstances are the same. The reason to call the contract self-employed is because it is more cheaper and less paper work for the salon owner.