Industries
Salon Tax Preparation
Payroll, sales tax, and tax preparation for salons and personal care businesses in California.
Salons and personal care businesses often mix booth rent, retail product sales, and payroll or contractor pay. We separate those streams in the books and prepare the filings they require.
Visits are by appointment in San Pablo or Concord. Remote service covers the rest of the state. Liability and workers compensation questions are taken in Concord.
Services that usually fit
Documents to start
- Booth rent receipts
- Retail sales reports
- Product purchase invoices
- Payroll or contractor payment list
- Seller’s permit, if you sell products
Your chart of accounts, built for salons and personal care
Stanza creates and maintains a chart of accounts so the deductions you are allowed to claim are identified and documented.
We set up income, cost of goods or job costs, and expense accounts organized around this industry’s deductible categories and the tax form lines they map to (Schedule C, or Form 1065 or Form 1120-S when the business files as a partnership or an S corporation). Sub-accounts separate items with a special tax treatment, so a repair is not mixed with a capital purchase and a liability is not booked as an expense.
Booth rent income
Rent you collect from a booth renter is income. It is not a reduction of the rent you pay.
Booth rent expense
Rent you pay for a booth you work in is generally a business expense. It is not a commission and it is not income.
Products for resale
Color, shampoo, and other goods you sell are inventory or cost of goods, and they can be subject to sales tax. They are not the same as supplies you use up on a client.
Supplies used on clients
Back-bar products you consume and disposable supplies are usually operating expenses, not inventory for resale.
Education
Continuing education that maintains or improves skills you already use in the salon is generally deductible. Education that qualifies you for a new trade is not treated the same way.
Commissions paid
Commission splits and booth rent are different payments. Separating them shows who may need a Form 1099.
Linens and uniforms
Shop linens and required uniforms that are not everyday clothing are generally deductible.
Sales tax payable
Tax you collect on retail products is a liability, not an expense. It is remitted to the state.
How it is managed
- Each month we categorize transactions and reconcile the accounts to the bank.
- Receipts and mileage stay with the transactions they support.
- Personal spending stays out of the business accounts.
- Capital purchases are reviewed against repairs before anything is expensed.
- Vendors are tracked so a Form 1099 can be prepared when a form is required.
- A quarterly review of profit can be used to adjust estimated tax payments when those payments apply.
- At year end we review the accounts with the preparer so deductions are captured and the records support them.
Whether a deduction is allowed depends on your facts and on IRS and FTB rules. We help you claim what you are entitled to and keep records that support it. We do not guarantee savings or a dollar amount.
Book bookkeeping and QuickBooks setup with Lucia Leiva, Certified QuickBooks ProAdvisorCommon questions
- Taxable retail product sales generally are. Service income may be treated differently. We file from your separated reports, and the CDTFA address lookup confirms the rate.
- As the rent you actually collected, with the names and amounts you provide.
- Yes. Use the business insurance page or the quote form in chat. Josephine Leiva handles it from Concord. Nothing is guaranteed.
- Products you sell are inventory or cost of goods and may be subject to sales tax. Supplies you use on a client are usually an operating expense. Booth rent you collect is income, and booth rent you pay is an expense.
Offices in San Pablo (510-778-1579) and Concord (925-349-6924). Remote work is available in California.
Ready when you are
Ready to get organized? Book an appointment today.
Pick a time that works for you — in person at San Pablo or Concord, or fully remote.