Start Your Successful Nail Business

What are the Legal Requirements for Starting a Nail Business?

Legal requirements will depend on your location and type of business you're starting. But, three things you can look into doing right away:

• Choose a Business Structure: Decide whether your business or salon will operate as a sole proprietorship, partnership, LLC, or corporation. Each has different legal and tax implications.
  
  
• Register Your Business: Obtain the necessary licenses and permits to operate legally. This typically includes a business license, a cosmetology establishment license, and health department permits.
  
  
• Insurance: Secure liability insurance to protect your business from potential lawsuits and property insurance for your physical assets.

How Do I Register My Nail Salon or Nail Care Business?

Decide how you want to register your business. Popular options include a limited liability company (LLC), a partnership or sole proprietorship. You could start with an LLC and change it to an “S” business enterprise or a “C” company later. That way, you can compete with big industry brands and grow your production.

Next, get a trade name certificate. If you’re going to create your own line of skincare products, contact the FDA to find out what licenses you need. Whether you sell online or in a store, a business permit may be necessary depending on the laws in your state. You also need to apply for an Employer Identification Number (EIN) if you hire employees. Even if you don’t hire employees, it may make sense to get an EIN. It’s free and easy to get online through the IRS. If you operate your business from a store, you will also need to get property and liability insurance. 

How much should I charge for my services?

It’s a good idea to research your other nail businesses in your area to see how much they charge for their services, but it’s important that you don’t meet them just because you think that you should.

Prices for nail services vary depending on a number of factors. Gel and acrylic nails can cost anywhere from $35 to upwards of $150 based on the location of the salon, experience of the nail technician and quality of products used.

First of all, you need to know how much profit you have to make to support not only your business, but yourself. When working out the cost of a single treatment, be sure to factor in everything over the financial year, such as:

• Fixed costs, such as any rent, utility bills, insurance, website fees etc

• One-off purchases such as new nail brushes, e-files or towels

• Regular supplies such as the nail polishes, monomer or cuticle oil you use for the treatment

• Disposable supplies that need frequent replenishment, such as cotton wool and face masks

• Miscellaneous items such as tea and coffee, magazines and loyalty cards

• Your time – both that you spend on the treatment, and traveling to and from the appointment if you are a mobile nail tech

Once you know the cost of each treatment, factor in the cost of insurance, taxes or any loan repayments. Then, figure out how much profit you would need to make a living before finalizing a price that works for you.