Starting a nail salon or beauty business can be rewarding in many ways. Not only do you help customers look and feel their best, but you can also be creative and enjoy a social work environment. To make the most out of your skills in the beauty industry you’ll need to ensure you’ve got your legals sorted. Follow our checklist to find out the legal requirements of starting a nail salon or beauty business.
1. Pick your Business Structure
The first step is to pick which kind of business structure you want to have. This can effect your liability and how you pay your tax. There’s pros and cons for each structure, so make sure you choose what’s best for your business.
2. Apply for an ABN
Next, you need to register for a Australian Business Number (ABN). An ABN allows you to receive and make payments to other businesses, make GST and PAYG payments and sign up for a website. Importantly, it gives your business legitimacy.
Start your ABN application in minutes!
Need an Australian Business Number to start a casual job? We've got you covered.
3. Register a Business Name
You need to apply for a business name to operate a business in Australia unless you’re going to use your first and last name as your business name. You don’t have to register for a business name if you register a company and use the company name as your business name.
5. Insurance
You’ll need to purchase insurance in order to operate your business and minimize any risk. For example, if you have employees, you’ll like need worker’s compensation insurance. Make sure to research what insurance is right for your beauty business.
6. Sort out Finances
When initially setting up your business, there’s a few financial things to sort out. Firstly, unless you’re going with the sole trader business structure, you need a Tax File Number (TFN). You should also open a business bank account to ensure you’re well organised with your financial planning. Additionally, you need to consider a plan for accounting, and whether you’d like to get accounting software or an accountant. Finally, if your business makes $75,000 or more a year, before tax you need to register for Goods and Services Tax (GST) with the Australian Taxation Office (ATO).
7. Local Council Permits
Thinking of working from client’s homes or from a shop-front? Either way, you should contact your local council to find out if you need a permit to operate your business. If you’re thinking from a shop-front that you need to make physical changes to, you’ll likely need to get approval.
8. Hygiene and Safety Standards
It’s crucial that your business operates to the highest standard of cleanliness and hygiene. Make sure you’ve got all of the machinery, cleaning tools and hygiene equipment you will need to meet the standard. Each state has a separate beauty industry hygiene standard, so find out what your State requires.
Summary
Starting a beauty business is an exciting step. To make the most of it, make sure you have your legal requirements set up, as well as insurance and any relevant permits and standards. This way you minimise any risk to your business operations and ensure a great start to your new endeavour.
Get a fixed-fee quote from Australia's largest lawyer marketplace.
