Q&A

Is a booth renter ok without a signed contract from the salon owner?

Q.

I’m a booth renter, but the salon owner did not give me a contract to sign. Am I OK without one?

A.

 In the event of an audit or to resolve conflict, the first item the IRS or a judge would look for is a written contract. With no written agreement in place they would declare that you have an employee-employer relationship. That could mean you would owe back taxes, penalties, and interest for the time period being audited. It is clearly the salon owner/landlord’s responsibility to provide a legal contract for her renters to sign. A contract protects both sides involved in the arrangement if done correctly. Without it, you have nothing to stand on if the owner walked in tomorrow and told you to leave. You have nothing in writing to protect you or her.  – Ken Cassidy is president of Kassidy's Salon Management Consultants (www.kassidys.com)

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