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Step By Step Guide

Welcome to The Hair Factory Salon Suites!

We are excited to welcome you to our team of salon professionals and look forward to helping you on your journey to become a successful business owner.

First off, we want to congratulate you on taking the first step toward business ownership. Being a business owner is one of the most rewarding things in life and although it can be hard work, your success and motivation can take you to heights you never thought possible. We will be here to help guide you in every step along the way.

Setting up a business as not a difficult as you may think. Although it can seem daunting, we have set up a step-by-step guide to make it as easy as possible for you on your entrepreneurial journey.

So without further a due let's begin!

Step One: Happy Dance

The first step isn't really a step at all, it is a realization that you have decided to become part of a team at The Hair Factory Salon Suites, so take a deep breath and do your happy dance. Don't let yourself become overwhelmed with any of the steps that we are about to cover. Along the way you will find road blocks and situations that will seem impossible, but don't worry we are simply a phone call away.

We are here as a team of business owners and have created a community of salon professionals to help each other and provide real world knowledge to help you achieve your goals.

Step Two: Are you ready to be a business owner?

At The Hair Factory Salon Suites you will run your own business, book your own clients, order your own retail, sell your own retail, pay your own taxes, design your own space, market for new clients, and promote your own salon. With all of this comes the thrill in seeing your hard work pay off. The team at The Hair Factory Salon Suites is here to help you succeed at everything mentioned and make the journey as smooth as possible.

Step Three: Establishing your business and Naming your Salon!

Now that you are mentally prepared for the road ahead you need to establish yourself as a business owner. Again this can seem daunting. Where do you begin? You begin by deciding what type of business structure you want to be. There are many options and only a tax professional or your CPA can advise you on your best option, but in general most salon professionals operate as a Sole Proprietor.

Also you will need to name your salon. The name of your salon is an important part of establishing yourself, thus your salon name will reflect you as a stylist and will be the main branding aspect of your business. So choose a name that reflects what you are all about, your goals, your views, etc.

Step Four: Certificate of Assumed Name

Congratulations! How does it feel to have named your own business?! Now that you have decided on a name you may need to file for a Certificate of Assumed Name with the Counties Register of Deeds.

Register of what?!? Again don't worry we have set up a simple process that will help you determine if you need to file this certificate.

Are you operating as a Sole-Proprietor? If you are, is the name of your Salon much different than your given name? As an example, if your name is Jane Smith and the name of your salon is Hair By Jane Smith, you most likely won't need to file for an Assumed Name Certificate. But if the name of your salon is different than your given name you will need to file for an Assumed Name Certificate with Carteret County. So look under the Assumed Name tab in this packet and choose the form that reflects your business structure. If you have any questions do not hesitate to ask, we are here to help!

Once you have filled out the correct form, place it in the front of this binder, bring it to us and we will notarize it for you and direct you on filing it with the counties register of deeds office; located at the Carteret County Courthouse. Filing this paperwork requires a $26.00 fee made payable to the Carteret County Register of Deeds in the form of local check, cash, or credit/debit card.

Step Five: Setting up a Business Bank Account

Now that you have proof that you are operating as a business and proof of the name of that business we recommend setting up a business bank account in order to track all of your expenditures and business purchases in order to make it easier come tax time. Simply contact whichever bank you choose that handles business accounts and ask them what is required for you to set up an account. Most will require a minimum deposit, driver's license, a copy or your assumed name certificate, and your social security number or EIN depending on how your business is structured. Make sure to ask about fees that are involved and how you can avoid them. Again if you have any questions please ask!

Step Six: Registering your Business and Obtaining a Sales and Use Tax ID

So you are officially documented as a business owner! Congratulations!! It feels great to have the power of your future in your own hands! Now that you're legally set up as a business there are some tax documents and forms that you will probably need to file in order to set up your retail accounts and avoid paying sales tax on items that you will sell as retail in your salon. First, make sure that you have all of your documents in front of you, your official salon name, your Social Security Number, and your bank account information.

OK. Let me explain what we are about to accomplish and why it is important. A Sales and Use Tax ID for the State of NC allows you to sell retail products to the public, collect sales tax on those items and then give that collected sales tax back to the state. It is important that you properly document all sales tax collected and file it properly with the state to avoid any tax issues. I know that this step seems like a lot but just think about each time you sell a product to a client for $25.00, knowing good and well that you, as a salon professional, can buy it from your supply store for $12.00. Where does that profit go?

Now that you are a business owner it goes straight to you. So while setting up a Sales and Use Tax ID sounds like a complicated task, it is well worth it and will allow you to increase your income through retail sales. So on that $25.00 product that you just sold to one of your clients, you must charge NC Sales Tax, then each quarter send that sales tax into the state. And again don't worry we will cover how to properly report how much sales tax you collected and what to do with it when you need to send it in. Now that you understand why you are getting a Sales and Use Tax ID for your new Salon, follow this LINK to begin registration and Click on “Ready to register Online? Click Here”.

Now Scroll down to the bottom of this page and click “Next”

Now begin filling out the form, making sure to read each question and answer it correctly.

Continue through the forms filling out the appropriate sections, if you get stuck anywhere please call us and we will help you in any way!

Add the location of your new salon. The address for your salon is:

5317 HWY 70 Suite A
Morehead City, NC 28557

Select the account you are applying for, Sales and Use Tax.

This screen can seem tricky, but it isn't. We have filled in the items that will most likely reflect how you will run your business.

The final page before you submit your registration packet allows you to review all of your information before submitting to check for accuracy. Make sure to read over everything and double check spelling. If there is anything that you are not certain of, let us know and we will help guide you through the steps.

Fill out the bottom of the previous page accordingly and hit submit. Once your registration is complete you will receive a confirmation page. PRINT THIS PAGE! This page contains your ID and your confirmation number. Your Account ID number is used on several documents when setting up accounts with distributors and business accounts.

Step Seven: Tax Exempt Form

Now that you have a Sales and Use Account ID Number you can properly fill out the Tax Exempt form E-595E by following this LINK. This form simply needs to be filled out and signed and a copy needs to be given to each wholesaler that you purchase products from. This form prevents you from paying taxes twice on retail that you sell. The original should be kept in your personal files in the event of an audit.

Step Eight: NC Board of Cosmetic Arts

Congratulations! You have successfully registered your business with the NC DOR! Now that you are legally allowed to sell retail products at your salon, have registered your business name with the county, and have a bank account for your new business, it is time to register your new salon with the NC Board of Cosmetic Arts. Follow this LINK and follow the instructions on the screen. There will be a fee of approximately $38.00 which should be made payable to the NC Board of Cosmetic Arts for registering your salon with the State of NC.

Step Nine: Professional Liability Insurance

This is similar to malpractice insurance carried by doctors and nurses. If someone claims that your negligence caused them bodily injury or emotional harm, you could face business ruin if the damage is extensive and you aren’t covered. Medical expenses are costly, but your cosmetologist insurance can pay up to your coverage limit. You have the option to obtain professional liability insurance from whom ever you desire. As a member of The Hair Factory Salon Suites you are eligible for our simplified insurance package at a reduced cost to you.

Step Ten: Sigh of relief

Now that wasn't so hard was it?! You officially have a business. Feels good doesn't it? Stressful we know but don't fret we are here to help you along the way on this new journey.