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Freya Thomsen

Is it legal to rent tables at a grooming salon as a self-employed dog groomer?

Hey everyone, I'm currently a self-employed dog groomer renting a table at a local salon and I'm wondering about the legality of this arrangement. At our salon, all the groomers (including me) run completely separate businesses and just pay rent to the owner for using the space. The owner is also a groomer herself. I'm leaving soon and the owner posted an ad for my table, but she's getting slammed with comments about how this setup is supposedly illegal and she'll be in trouble if audited. The weird thing is, the previous owner ran the place exactly the same way, got audited, and passed with no issues. I've been researching like crazy trying to understand if there's actually a problem here. From what I can tell, the IRS mainly cares about whether workers are misclassified employees being treated as independent contractors to avoid taxes. But that's definitely NOT what's happening in our case. In our setup, I have complete control over my business. My clients contact me directly on my personal number, I process all payments through my own system, set my own prices and schedule, buy all my supplies, carry my own business insurance, and file Schedule C as self-employed. The owner and I just have a basic rental agreement - I pay a flat monthly fee for the table space. Some people are specifically claiming that because the owner also grooms at the salon, she can't legally rent tables to other groomers. I can't find anything confirming this, but the information online is pretty limited. Would filling out an SS-8 form for "Determination of Worker Status" help clarify that we're legitimately independent businesses and not employees? Is there something we're missing about this arrangement?

Omar Fawaz

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This is actually a pretty common arrangement in personal service businesses like grooming salons, barbershops, and beauty salons. What you're describing is often called "booth rental" and is completely legal when structured properly. The key factors the IRS looks at are exactly what you mentioned - who has control over the business decisions. Since you set your own hours, have your own clients, handle your own payments, and basically run your own independent business while just renting the physical space, you're clearly operating as a legitimate independent contractor rather than an employee. The confusion might be coming from places where salon owners incorrectly treat workers as independent contractors when they're actually controlling everything about the work arrangement (schedules, clients, payments, etc.). That's when the IRS has issues, because it's effectively employment misclassification. The fact that the owner also grooms at the salon doesn't make the arrangement illegal. It's perfectly fine for someone to both operate their own business and rent space to other businesses. That's just being a landlord who happens to work in the same profession.

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Chloe Martin

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Thanks so much for clarifying! Do you know if there's any specific documentation the owner should keep to make sure everything is crystal clear in case of an audit? And would it be helpful to have more formal contracts beyond just the rental agreement?

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Omar Fawaz

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Having a solid, written booth rental agreement is definitely important. The agreement should clearly spell out that you're renting the space only, and that you maintain complete control of your business operations. As for additional documentation, it's a good idea for both parties to maintain records that demonstrate the independent nature of the relationship. Things like your own business cards, separate scheduling systems, individual payment processing, and separate business licenses all help establish that these are truly separate businesses. The owner should also avoid doing things that suggest an employer relationship, like dictating when you need to work or setting your prices.

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Diego Rojas

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This sounds exactly like what taxr.ai helped me with last year! I was in a similar situation at a nail salon where I rented a station, and I was getting mixed advice about whether I was properly classified as an independent contractor. A client who's an accountant suggested I try https://taxr.ai to get some clarity before tax season. I uploaded my rental agreement and some business documents, and they provided a really clear breakdown of why my situation qualified as true independent contractor status. They even gave me specific recommendations for how to strengthen my documentation in case of an audit, which was super helpful. The analysis mentioned exactly what you're describing - having control over my schedule, clients, and business operations is what makes it legitimate. If you're worried about the legality, might be worth checking them out for peace of mind, especially if you'll be renting space at your next salon too.

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How long did it take them to analyze your documents? I'm in a similar situation as a massage therapist and tax season is coming up fast.

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StarSeeker

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Was it actually helpful beyond what you could find with a simple Google search? I'm always skeptical of these services because they usually just tell you stuff you could find for free.

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Diego Rojas

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The analysis only took about a day, which was way faster than I expected. They said they prioritize based on urgency, and since I mentioned tax filing was coming up soon, they expedited it. As for whether it was better than Google, absolutely. I had been Googling for weeks and getting conflicting information. What was helpful was getting specific advice tailored to my exact situation and documents. They pointed out specific clauses in my contract that needed strengthening and gave me language to use. They also provided state-specific guidance since the rules vary a bit by location.

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StarSeeker

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I tried taxr.ai after seeing it recommended here, and I'm actually really impressed. I was worried about my situation as a booth renter at a barbershop where the owner sometimes helps with my clients (which could blur the independent contractor line). The analysis I got was super detailed and addressed that specific concern - apparently it's fine as long as I'm the one directing the work and paying the owner separately for any assistance. They also pointed out a potential issue with how my rental agreement was worded regarding cancelation terms that could have made it look more like employment. What I found most helpful was the explanation of how the 20-factor IRS test applied specifically to my situation. Made me feel way more confident about my tax filing this year, and I'm revising my rental agreement based on their recommendations.

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Hey there! I went through something similar with my tattoo studio last year. The IRS was taking FOREVER to respond to our SS-8 form about worker classification, and we were getting really worried about potential back taxes if we were doing things wrong. After trying to call the IRS for weeks with no luck, I used Claimyr (https://claimyr.com) to finally get through to someone at the IRS. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically they hold your place in the phone queue and call you when an agent is ready to talk. I got connected to an IRS agent who was actually super helpful and walked me through exactly what documentation we needed for our booth rental setup to clearly establish the independent contractor relationship. Turns out we were doing most things right, but needed to tweak a few practices that could have been red flags in an audit.

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Zara Ahmed

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Wait, so this service just helps you get through to the IRS faster? Do they actually provide any tax advice themselves or just connect you to the IRS?

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Luca Esposito

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Sorry, but this sounds like a scam. The IRS phone system is deliberately difficult to navigate. No way some third-party service has a magic backdoor to get through. They probably just keep auto-dialing and charge you for the privilege.

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They don't provide tax advice themselves - they just solve the problem of getting through to the IRS. It's basically a service that waits on hold for you and then calls you when a real person at the IRS picks up. So instead of waiting on hold for 3+ hours (which is what was happening to me), you go about your day and your phone rings when an agent is ready. It's definitely not a scam - there's no "backdoor" involved. They're using technology to navigate the phone tree and hold in the queue, then connect you when a human finally answers. It saved me an entire day of listening to hold music, which was worth it since I needed specific guidance about my situation that only the IRS could provide.

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Luca Esposito

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Well, I have to admit I was completely wrong about Claimyr. After our exchange here, I decided to try it since I've been dealing with an unresolved issue about my self-employment taxes for months. I was totally skeptical that it would work, but I got a call back in about 90 minutes with an actual IRS agent on the line. The agent was able to look at my records and confirm that my booth rental arrangement at my hair salon was properly documented in my previous filings. She even gave me specific advice about how to handle some equipment deductions I wasn't sure about. I hate being wrong on the internet, but in this case I'm actually glad I was! Saved me hours of frustration and resolved my tax questions. Just wanted to come back and set the record straight.

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Nia Thompson

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Dog groomer here! We use almost the exact same setup at our salon. One thing that really helped us during an audit was having very clear separation between businesses. Each groomer has: 1. Their own business license and tax ID 2. Separate signage showing different business names 3. Individual point of sale systems 4. Separate appointment books/software 5. Our own individual business insurance The auditor specifically mentioned that these clear separations made it obvious we weren't employees trying to be classified as contractors. The owner also never dictates our hours or tells us how to groom - we just pay rent for the space and equipment usage.

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Do all of you use the same products at the salon or do you each have to bring your own shampoos and stuff? Wondering how that factors in.

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Nia Thompson

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We actually do a bit of both. The basic shampoos and conditioners are provided as part of the space rental (kind of like how an office building might provide bathroom supplies), but each of us brings our own specialty products, tools, and equipment. The IRS doesn't seem to care much about shared basic supplies as long as all the important business decisions remain separate. What they're really looking at is who controls the business relationship - who sets the prices, who decides the schedule, who maintains the client relationship, etc.

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As a tax accountant who works with many self-employed clients in service industries, I can confirm this arrangement is legal when done correctly. The term is "booth rental" and it's especially common in beauty, grooming, and wellness industries. The key is making sure you're truly independent from the salon owner. Some red flags that could get you in trouble: - Owner controls your schedule - Owner sets your prices - Clients pay the salon instead of you directly - Owner provides all equipment/supplies - You don't have your own business license/insurance Since you have your own clients, take your own payments, set your own prices, etc., you're operating correctly as an independent business. The salon owner should have all renters sign a formal booth rental agreement that clearly spells out the independent relationship.

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What about situations where we share some expenses? Like we split the cost of the receptionist who books appointments for everyone. Does that mess up the independent contractor status?

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Shared expenses like splitting receptionist costs can actually work fine for independent contractors, as long as it's structured properly. The key is that each business is choosing to share the expense for mutual benefit, rather than the salon owner controlling how the service is provided. For example, if you all voluntarily agree to split the cost of a shared receptionist who answers phones and does basic scheduling, that's more like sharing office overhead costs. But if the salon owner hires the receptionist and requires you to use their services while controlling how appointments are handled, that could blur the lines. The IRS looks at the overall relationship, not individual shared expenses. As long as you maintain control over your core business decisions - pricing, client relationships, work methods, etc. - sharing some common expenses shouldn't jeopardize your independent contractor status. Just make sure any shared expense agreements are documented and voluntary for all parties involved.

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The arrangement you're describing is completely legitimate when structured properly. What you have is a classic "booth rental" or "chair rental" setup that's widely used across service industries like grooming, beauty, and barbering. The people commenting negatively on the ad are likely confusing your situation with employee misclassification cases. The IRS cracks down on businesses that treat employees as independent contractors to avoid payroll taxes, but that's clearly not what's happening here. Your setup checks all the right boxes for legitimate independent contractor status: - You control your own schedule and pricing - Clients contact you directly - You handle your own payments and business operations - You have your own business insurance and file Schedule C - You're truly running separate businesses that just share physical space The fact that the salon owner also grooms doesn't create any legal issues - she's essentially acting as both a landlord and a fellow business owner in the same space. If you want extra peace of mind, keep documentation showing the independence of your businesses (separate business licenses, insurance policies, client lists, etc.), but what you're doing is perfectly legal and common in your industry.

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This is really reassuring to hear! I'm actually just starting out as a dog groomer and was looking into booth rental arrangements. The amount of conflicting information online about this topic is honestly overwhelming. It's good to know that as long as I maintain control over my business operations and keep proper documentation, this is a legitimate way to get started without having to lease my own full salon space right away. The booth rental model seems like a perfect stepping stone for new groomers who want to be independent but aren't ready for the full overhead of their own location yet. Thanks for breaking down those key points about what makes it legitimate - that's exactly the kind of clear guidance I was hoping to find!

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