From Side Hustle to Scalable Salon: How to Legally Grow Your Nail Business in 2025
- Antionette Mays-Salami
- Sep 13
- 4 min read
For numerous nail technicians in Texas, what starts as a side gig—serving a few clients after work, offering services from home, or renting a booth in a salon—can gradually evolve into something more substantial. But how do you transform a passion into a legitimate business? And what legal steps are necessary to safeguard what you're building?
By 2025, the journey from part-time nail services to owning a fully licensed salon is more structured than ever. If you're considering expanding your services, hiring staff, or opening your own space, here's what you need to know to grow legally and confidently in Texas.
Step 1: Make It Official — Business Formation Basics
Is your nail business still operating under your personal name or only accepting cash payments? If so, it may be time to formalize your business.
Here are some common legal steps to consider:
Choose a business structure, such as a sole proprietorship, LLC, or corporation. An LLC offers liability protection and tax flexibility.
Register your business name (also known as an “Assumed Name” or “DBA”) with your county or the Texas Secretary of State.
Get an EIN (Employer Identification Number) from the IRS, even if you don’t have employees yet. This is important for taxes and banking.
Open a business bank account to separate personal and business finances — a simple but essential legal step.
These actions are crucial for protecting your personal assets, obtaining business credit, and complying with Texas law.
Step 2: Understand Licensing Requirements
If you offer nail services for a fee in Texas, you likely already possess a manicurist license from the Texas Department of Licensing and Regulation (TDLR). However, as your business grows, you may require additional licenses.
Planning to rent a suite or open your own salon?
You might need an Establishment license, even if you are the only person working there. The location must meet health and safety standards and pass an inspection before opening.
Considering operating from home?
Proceed with caution. Home-based salons are only legally permissible if they comply with TDLR’s requirements.
Unsure if your setup is compliant? It’s wise to confirm before you expand.
Step 3: Hiring Help? Know the Labor Laws
At some point, you might decide to grow your team by hiring more people, either as employees or independent contractors. In 2025, it's crucial to classify these workers correctly.
The IRS and the U.S. Department of Labor are closely monitoring misclassification issues, especially in the beauty industry. If you:
Determine schedules
Manage how services are delivered
Provide tools or products
Require technicians to work exclusively at your salon
...then you might legally be considered an employer, not just a "booth renter."
In Texas, employers are required to:
Register for state employment taxes
Pay unemployment insurance
Adhere to wage and hour laws
Maintain necessary records
Consulting with an attorney or tax specialist can help you avoid costly classification mistakes.
Step 4: Find the Right Space — and Lease Smart
Moving from a home-based business or a shared salon space to your own location is a major step, with legal aspects to consider.
Before signing a lease, think about asking:
Is the location properly zoned for salon use?
Who handles maintenance, insurance, and renovations?
What are your options for subleasing or expanding?
A commercial lease is a binding agreement, and its terms can affect your growth potential. It might be prudent to review it with legal counsel before committing.
Step 5: Protect Your Brand and Reputation
As your business expands, safeguarding your name, work, and client relationships becomes increasingly crucial.
Think about trademarking your salon's name or logo to stop others from using it.
Implement written service agreements or policies to clearly outline refunds, cancellations, and expectations.
Keep client consent forms for services that involve chemicals, tools, or risks.
These legal measures can save time, prevent conflicts, and foster trust with clients.
Ready to Scale? Plan Ahead
Are you considering expanding to multiple locations, offering advanced services, or building a brand that extends beyond nails?
Growth is exciting, but it also brings new responsibilities, such as:
Increased insurance coverage
Obtaining local permits and signage approvals
Securing additional licenses for other services (e.g., waxing, lashes)
Hiring staff or management with proper contracts and oversight
Planning for future growth now can help you expand legally, not just quickly.
✅ Final Thought
Turning your nail business from a side hustle into a full salon is an exciting venture, but expanding involves important legal steps that shouldn't be ignored. By formalizing your business, comprehending licensing and labor laws, and safeguarding your brand, you can create something that is not only successful but also sustainable.
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Whether you're just starting to explore the idea of opening a nail salon or you're already making moves toward launching your business, you're not alone. By subscribing, you'll join a growing community of Texas-based entrepreneurs who are navigating the same legal, operational, and industry challenges. You'll get access to practical legal insights, updates on regulatory changes, and opportunities to connect with others in the beauty and small business space. It's a chance to stay informed, ask questions, and build valuable relationships with people who understand the journey you're on.
Have questions or ready to take the next step? Feel free to email us at contact@mayslawyer.com— we're happy to help you navigate the process when you're ready.
📌 Disclaimer: This post is for informational purposes only and does not constitute legal advice or create . Please consult a licensed attorney for guidance specific to your business.
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