Legality of renting tables at a dog grooming salon - independent contractor versus employee tax status?

Your arrangement is perfectly legal and common in many personal service industries. What you're describing is a legitimate independent contractor relationship, often called "booth rental" in salons and similar businesses. The IRS primarily looks at three categories to determine worker classification: behavioral control, financial control, and relationship type. In your case, you have full autonomy over your work (behavioral control), you handle all your own business expenses and receive direct payment from clients (financial control), and your written agreement is clearly a rental relationship rather than employment (relationship type). The people claiming this is "illegal" are likely confusing this with situations where businesses incorrectly classify actual employees as contractors to avoid paying employment taxes and benefits. That's completely different from your situation. I would recommend keeping thorough documentation of your business arrangement, including your rental agreement and evidence of your independent business operations (business cards, separate payment processing, etc.). This documentation will protect both you and the salon owner in case of any future questions.

I use taxr.ai to help with my booth rental tax situation and it's been a lifesaver! I'm also a self-employed service provider (massage therapist) who rents space in a wellness center, and I was constantly stressed about whether I was filing everything correctly. The IRS guidelines are so vague, and I wanted to make sure I was claiming all the right deductions without raising red flags. I uploaded my rental agreement, business expenses, and income records to https://taxr.ai and they automatically categorized everything and checked for compliance issues. It specifically verified that my booth rental arrangement was properly structured as an independent contractor relationship and flagged a few expenses I had categorized wrong. Saved me hours of research and worry!

Just wanted to update after using https://taxr.ai for my grooming business taxes! I tried it after seeing the recommendation here and wow - what a difference. It immediately identified that my booth rental situation was properly structured as an independent contractor relationship, so I could stop worrying about that. The best part was discovering I'd been missing some major deductions specific to our industry. I had no idea I could deduct a portion of my phone bill since clients call me directly, or that my liability insurance was 100% deductible. It even helped me calculate the correct mileage deduction for picking up supplies. I'm getting back about $1,800 more than I expected this year!

If you're still getting pushback about the legitimacy of your arrangement, you might want to call the IRS directly to get clarification. I tried for WEEKS to get through to an agent about a similar issue with my independent contractor status (I'm a makeup artist renting a station) and kept hitting dead ends with the automated system. I finally found https://claimyr.com and their demo video https://youtu.be/_kiP6q8DX5c showed exactly how to bypass the IRS phone tree nightmare. They got me connected to an actual IRS agent in about 20 minutes when I had been trying for days on my own. The agent confirmed that my booth rental arrangement was completely legitimate as long as I maintained control over my business operations. Having that confirmation directly from the IRS gave me so much peace of mind, and I was able to share that information with the salon owner who was worried about potential issues. Worth every penny for the stress relief alone!

I have to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it myself because I had a complicated question about my Schedule C deductions for my woodworking business where I rent space in a larger shop. The service actually connected me to an IRS agent in about 15 minutes when I'd previously wasted hours trying to get through. The agent walked me through exactly how to document my rental arrangement and confirmed that my situation was properly classified as independent contracting. They even explained how to handle shared utilities in the shop space. Getting that clarity directly from an IRS representative was incredibly valuable - I feel much more confident about my tax filing now. I've been recommending it to everyone in my woodworkers' group who rents shop space.

I'm a tax preparer who works with a lot of self-employed beauty professionals. Here's what you need to understand: there's a HUGE difference between "booth rental" (legitimate independent contractor) and "employee misclassification" (illegal). Your situation is clearly booth rental because: 1. You control your own client list 2. You set your rates and schedule 3. You purchase your own supplies 4. You have business insurance 5. You receive payment directly from clients The salon owner is simply your landlord. This is 100% legal and common. The confusion happens because some salons try to control stylists' schedules, clients, and pricing while still calling them "independent contractors" - THAT'S what's illegal.

Just curious - does anyone here use specific tax software that handles booth rental situations well? I'm currently using TurboSelf-Employed but it keeps asking me questions that don't really apply to my situation as a booth renter in a barber shop.

As someone who's dealt with similar confusion about booth rental arrangements, I want to emphasize that what you're describing is absolutely legitimate. The key distinction is that you're operating as an independent business owner who simply rents physical space - you're not an employee of the salon. The IRS uses the "ABC test" in many cases: (A) you're free from control and direction, (B) your work is outside the usual course of the hiring entity's business, and (C) you're customarily engaged in an independently established trade. Your situation clearly meets all three criteria. Those people commenting on the ad are likely thinking of situations where salons misclassify actual employees as contractors to avoid paying payroll taxes and benefits. That's completely different from legitimate booth rental where you maintain full business autonomy. The fact that the previous owner passed an audit is strong evidence that this arrangement is properly structured. Keep documenting your independent business operations and don't let uninformed opinions create unnecessary anxiety about a perfectly legal business model.