Industry Guide

Tax guidance for beauty and wellness professionals.

Stylists, barbers, nail techs, estheticians, and salon owners — booth renters and W-2 employees have very different filings.

Who this is for

Built for beauty professionals

For licensed cosmetologists, barbers, estheticians, lash techs, and salon owners. Booth renters typically file Schedule C; commission-based W-2 employees file differently.

Common income sources

  • Booth rental service income
  • Retail product sales
  • Tips (cash and card)
  • Commissions (W-2 employees)

Commonly considered expense categories

  • Booth or suite rent
  • Products, tools, and supplies
  • License, insurance, and continuing education
  • Marketing (social media ads, business cards)
  • Booking platform fees

May be deductible if eligible and properly documented. Rules vary — verify with a professional.

Recordkeeping

Recordkeeping checklist

  • Booth rent receipts
  • Product and supply invoices
  • Tip logs (daily)
  • Booking platform statements
Watch outs

Common mistakes to avoid

  • Underreporting cash tips
  • Mixing personal and business inventory
  • Not tracking booth rent paid via Venmo or CashApp
  • Skipping quarterly estimated taxes
FAQ

Frequently asked questions

Industry guides are general educational information for beauty professionals and do not constitute tax advice. Rules change often and personal circumstances vary — please consult a qualified tax professional.
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