Taxes (NV)
In the US if you work, you pay taxes. Whether you booth rent, are an employee or the shop owner you are accountable to the government for income taxes and in some cases sales taxes. The easiest being the status of employee because your employment taxes are collected from your wages before you see them and (hopefully) sent to the appropriate governing agencies. HOWEVER, you still have to file every April. DISCLAIMER. The BeautyCE Institute, our parent company, are not tax professionals. We highly recommend you hire a tax professional or CPA experienced in your industry or small business or go to one of the retail tax outlets. If you would like to try it on your own there are good software programs to use. There is no trouble like tax trouble.
Income Taxes
Depending on your filing status, you will either pay income taxes as a business (an independent contractor or as an owner) or as an employee. If you carry inventory you may have to pay taxes on that product. Be sure to check with your local government for additional rules and regulations for the operation a business in that locality. Again, consult with a tax professional regarding federal, state and local tax and filing requirements as well as for setting up your business and choosing the appropriate structure. You can find detailed information regarding business structure at https://www.sba.gov/business-guide/launch-your-business/choose-business-structure and also at https://www.irs.gov/businesses/small-businesses-self-employed/business-structures.
Sales Taxes
Regardless of status, in the state of Nevada some services, as well as retail products, are assessed a Sales Tax or Use Tax. The full requirements related to salons and barber shops are listed https://www.leg.state.nv.us/nac/NAC-372.html#NAC372Sec045. You will find an excerpt below. Please link to their page for complete requirements as well as https://www.nevadatax.nv.gov/# and the Nevada State Board of Cosmetology website. https://nvcosmo.com or the Barber and Barbering website at https://barber.nv.gov/
NAC 372.045 Bundled transactions. (NRS 360.090, 360B.110, 372.725)
“1. Except as otherwise provided by specific statute or regulation, the sales tax or use tax, as applicable, applies to the total amount of consideration received by a seller in connection with a bundled transaction.
2. For the purposes of this section:
(a) Except as otherwise provided in paragraph (b), “bundled transaction” means the retail sale of two or more products, except real property and services to real property, where the products are:
(1) Otherwise distinct and identifiable; and
(2) Sold for one nonitemized price.
(b) “Bundled transaction” does not include:
(1) The sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.
(2) The retail sale of tangible personal property and a service where the tangible personal property is essential to the use of the service and is provided exclusively in connection with the service, and the true object of the transaction is the service.
(3) A transaction that includes taxable products and nontaxable products and regarding which the purchase price or sales price of the taxable products is de minimis. For the purposes of this subparagraph:
(I) “De minimis” means that the seller’s purchase price or sales price of the taxable products is 10 percent or less of the total purchase price or sales price of the bundled products.
(II) Sellers must use either the purchase price or the sales price of the products to determine if the taxable products are de minimis. Sellers may not use a combination of the purchase price and sales price of the products to determine if the taxable products are de minimis.
(III) Sellers must use the full term of a service contract to determine if the taxable products are de minimis.
(4) The retail sale of exempt tangible personal property and taxable tangible personal property, where:
(I) The transaction includes food, drugs, durable medical equipment, mobility enhancing equipment, prosthetic devices or medical supplies; and
(II) The seller’s purchase price or sales price of the taxable tangible personal property is 50 percent or less of the total purchase price or sales price of the bundled tangible personal property. Sellers may not use a combination of the purchase price and sales price of the tangible personal property for the purpose of making this 50-percent determination for a transaction.
(c) “Distinct and identifiable” products do not include any:
(1) Packaging items, such as containers, boxes, sacks, bags and bottles, or other materials, such as wrapping, labels, tags and instruction guides, that accompany the retail sale of the products and are incidental or immaterial to the retail sale thereof. Examples of packaging items that are incidental or immaterial to the retail sale of the products include grocery sacks, shoeboxes, dry cleaning garment bags, and express delivery envelopes and boxes.
(2) Products provided free of charge with the required purchase of another product. For the purposes of this subparagraph, a product is “provided free of charge” if the sales price of the product purchased does not vary depending on the inclusion of the product “provided free of charge.”
(3) Items included in the sales price.
(d) “One nonitemized price” does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form, including, but not limited to, an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card or price list.
(e) “Sales price” applies to the measure subject to sales tax.
(Added to NAC by Tax Comm’n by R021-08, eff. 4-17-2008)”