12 | JUNE 2016 | OHIO STYLIST & SALON |WWW.OHIOSTYLIST.COM
indicates that the business wants the work done in
a certain way. If so, that person is an employee.
Look at what is your level of financial
risk? Employees are at low financial risk. Who pays for
supplies or other business expenses? Independent
contractors buy their own. What is your self-invest-
ment level? Employees do not invest in the business.
RELATIONSHIP OF PARTIES:
A person who
receives benefits including sick pay, vacation pay,
insurance or retirement benefits is an employee.
However, lack of benefits is not a clear-cut path to
being an independent contractor. The IRS will look
at the whole picture.
A written contract stating the relationship
between the parties can go a long way to estab-
lishing the independent contractor status if other
factors are unclear.
Which type of work status is better for you? The
answer may change throughout your career.
When some estheticians graduate they already
know they want to be their own boss. They cre-
ate their own setting and use previous business
experience to build a successful practice. Others
become independent contractors because they
can’t find a job in their field.
Starting a business is exciting but can also be
very challenging, even more so if you have no
experience running a business or funding to get
Before attempting to start your business, consid-
er additional training in both esthetics and business
operations to help ensure your success. It is impor-
tant to know that while three of four businesses
survive the first year, only 44 percent survive the first
You need all the preparedness you can get to
have a successful practice. Webinars, conferences
and training classes are available across the coun-
try. Business classes are available at community
colleges as well as online. An added incentive is
that postgraduate education to enhance your ca-
reer is most likely tax deductable.
There are some definite advantages to being
an employee. For a young mom busy raising kids,
it can be less stressful. You have set hours and you
have no after-hours work obligations. In the larger
spas benefits may include insurance and sick/vaca-
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