similar experience w/request to share space with esty

[PastorTom]

I have had a similar situation come up as another poster. I was also approached by and esty who would like to 'share' my space. I have been in this place for approx 6 mos and have gotten several calls during that time to inquire if we do facials. I am not licensed as an esty and would love to be able to offer full day spa packages to expand my menu of services.

The main downside is the esty is in a similar situation as the one the OP has talked about as she does not currently have a clientele built up. I have made it clear I am only interested in bringing someone in who is serious about building their own business and I will not be responsible for marketing them or buying their supplies.

I would like to bring her on board, but don't want to leave any details out on our agreement that could possibly end up to my disadvaneforum.xxxe. I am almost famous for being over-helpful to people sometimes to my own detriment so I'd really appreciate any sage advice I can get on this. I'd really like to set this up to be a win/win situation.

Some things I have been back and forth on are how the appointments are scheduled as I operate under a DBA. I am thinking it would be best if she just marketed herself, either by her own name or DBA, and as 'located inside' my business name. Not sure if this is even an issue or if I need to stay away from this altogether to avoid any 'mingling' of businesses.

Here is what I have come up with so far any advice on whether any of it is unreasonable or too generous will be greatly appreciated as well as any completely different ways of doing this to make this work in both our favors.

I want to avoid any possibility of the IRS viewing her as an employee also.

The days/ hours of space availability would be set by my current business hours/days of operation to make sure I am compensated when she uses the room as I would be in the office as usual. This will avoid her having complete access and possibly not telling me she saw client(s) on any given day. I have just met her and this may be modified as we get to know each other and build trust.

I would want to receive at least $25 per day that she utilizes the room. Given the rates that esty's get around here, I feel that is very reasonable as it will be "per day" and not "per client". I figure since she is just starting out that should be doable for her instead of a large amount of rent up front and/or paying for rent when she does not have any clients booked. This would cap out at $300/month. I am thinking that the room rent is to be due each day the room is used instead of at the beginning or end of each month that way I won't get skipped out on and she won't have to come up with a large lump sum all at once. (not sure how biz savvy she is at this point.)

There will be a trial period also to make sure we are a good fit.

Any marketing, supplies, scheduling, equipment, modifications to the space, signage, and taxes are solely at her expense. Also any room modifications must be approved by me as it is MY money that is on the line for the deposit and I intend to get that back if I have to move.

Not sure if Esty's have to have professional insurance, but I would think they would and if so, I would require her to name me as additional insured to protect myself from anything that might arise out of her practice as I do for my corporate chair clients.

I hope I haven't repeated myself too much on here. Thanks so much for any and all opinions and advice y'all can offer!

Happy New Year to all!

Angela W
Absolutely Spahhhvelous

 

[Stealth_Assasination]

Is there just one room the two of you will share based on schedule?

 

[octavio247]

No, the space in question is actually sort of an extra space I am currently using as a storage/prep room. I would be clearing it out completely for her to use as a treatment space. This space will be exclusively hers to use. I currently rent approx. 650 sq ft. It is configured in such a way as to provide a private treatment room for me, a reception/waiting area and this room that I would be renting to the esty.

I guess my main question is: If I do a perceneforum.xxxe split with her and then name the hours/days the room is available for her to see clients, will that send up a red flag to the IRS that would classify her as an employee in their view?

I know I have read somewhere on this board some guidelines, but I am 'search-challenged' as I could not find the posts that elaborated on this issue.

Thanks so much for any other advice/ideas you can give me.