Amongst the various steps to starting a nail salon, an important one to have all the permits and licenses in order. A Business License is essentially a document, which permits you to set up your store and engage in commercial activity. However, in order to obtain such permit the first and foremost requirement is to form a legal entity (or in other words, a company). There are multiple types of companies such as sole proprietorship, limited liability partnership (LLP) or corporation. Your Business License will include this information, your registered address, and other details such as the date of issue and validity.
Now that you already have formed a legal entity you must register it with the relevant statutory authority in your State. Based on you location, these could be a Registrar of Companies, or the City Trade Council. Additionally, your state may need you to furnish more information and / or obtain various other licenses and permits for your nail salon. These details can be easily obtained from either the authority’s website or from their offices. Armed with all the information, you’re now ready to get the Business License. So, how do you go about it?
- First and foremost decide the nature of your business entity. Whether it will be a sole proprietorship, LLP, corporation. Once this decision is made fill out the application form, mentioning all the relevant details such as address, store locations, store numbers, commencing date etc.
- In some cases, you may consider thinking of operating from your residential premises. In such cases, it is suggested that you get in touch with city council or corporation to ascertain their zoning. Without zoning demarcation you may not be allowed to register your Business License.
- Once the above is figured out, and the forms filled pay the relevant fee to the State Authority.
- The Business License, at all times, must be prominently displayed. Remember to keep it valid by paying the necessary renewal charges, if any. Doing so assures the customers that you’re running a legal set up and aren’t a fly by night operator.
- As mentioned earlier, other than a Business License starting your nail salon will and often needs other set of permits and licenses. Here again the requirement is state specific so it is best to check with the relevant authorities. Some of the known permits and licenses that are required are cosmetology license, tax registration and consent to operate, and a health department permit, usually issued after inspection that the nail salon premises is fit for customers.
- In case you chose to have employees, do bear in mind that each nail technician must have his or her cosmetology license. In many states this is awarded after a small course and a written exam. However, in some other places the test also involves a physical and oral examination. Therefore, checking on your state’s requirement is important.
- In instances that you hire employees you have to also inform the Labor Department and share details of their social security number. The State Authority may also issue the business a unique Employer Number for future records and information.
Ensure that all your licenses and permits are displayed in your nail salon and that the customers can spot them. It helps in building trust, and assures the customer that they’re in the right hands.
Since most permits and licenses are given for a limited time duration, remembering to renew them timely becomes quite a task. Nowadays nail salons are using a salon management software, which allows them to conduct most administrative work easily. Such software send automated reminders for any license and permits that are due for renewal.
Having met all the statutory compliances, you can now focus on the next steps to starting your nail salon business.
