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Lash extensions have become a staple in the beauty industry. Whether someone wants bold, dramatic lashes or just a subtle enhancement, a well-run lash extension business can attract a loyal, repeat customer base.
If you’ve been considering starting your own lash extension business, this might be your sign to go for it! But before you take the leap, there are a few key legal factors you’ll need to consider.
Is Lash Extensions A Good Business?
Lash extensions are a thriving beauty trend that can help you build a loyal customer base, but like any business, there are risks that need to be carefully managed.
Starting a lash extension business comes with both opportunities and challenges, so it’s crucial to understand these factors, manage potential risks, and set your business up for long-term success.
One of the best ways to prepare is by creating a detailed and well-structured business plan. A business plan prompts you to consider all aspects of your business, from operations to finances, helping you stay organised and equipped with the knowledge you need to launch and grow your lash extension business successfully.
What Do I Need To Start A Lash Extensions Business?
Skills and precision are essential for safely applying lash extensions, but as you likely already know, talent alone isn’t enough to run a successful business.
Beyond the essential equipment, such as lash adhesives, mini fans, lash tapes, salon stools, and cleaning supplies, you’ll also need to take care of key business requirements. The right documents, approvals, checks, and branding elements will help ensure your business is legally compliant and protected. Both are equally important to your success.
Understanding the legal requirements for starting a lash extension business can feel overwhelming. Keep reading to learn exactly what you need to get started.
Registering Your Lash Extension Business
Legally registering your lash extension business is the first step to getting it running. In Australia, different types of business structures are registered every day, with the most common being sole trader, partnership, and company. For business owners, picking a business structure is one of the first major decisions they will make for their venture. Therefore, understanding your options is crucial to making the right choice.
So, what do you need to know?
The most important factor when choosing a business structure is understanding what it means for your business. Factors such as the registration process, cost, liabilities, legal compliance, and more will impact which structure is right for your business.
Sole Trader & Partnership
Sole trader and partnership businesses have an easy and cost-effective registration process. To register, apply for an Australian Business Number (ABN) and, unless you meet the business name exemption, register a business name. However, these structures offer very little legal protection. A sole trader or partnership business is legally attached to the owner(s), meaning everything that happens with the lash extension business – including legal issues or debts – can impact the personal assets of the business owner.
Company
If you want to keep your lash extension business separate from yourself personally, consider registering it as a company. A company is a separate legal entity, meaning your lash extension business exists independently from you, giving you the protection of limited liability. However, registering a company requires a little extra work and is more expensive.
You’ll need to fill out the right applications with ASIC, have the necessary legal documents, and follow all the relevant compliance measures – both when registering your lash extension business and while running it. Registering a company is generally worthwhile, but it’s best to seek help from a legal expert to make the process easier and ensure everything is set up according to your specific needs.
Do I Own My Lash Extensions Business’s Name After Registering It?
Now that you’ve officially registered your business and business name, you might assume that you have full ownership of it. However, this is not the case. Many business owners make this mistake, only to find out later – often at great cost – that business name registration alone does not grant them legal ownership.
Registering a business name does not give you legal ownership over it. It simply prevents others from registering the same business name in the same industry. However, it does not stop someone from trademarking the name and claiming exclusive rights to it.
If you want full legal ownership over your business name or have a unique logo, you’ll need to register it as a trade mark. A trade mark grants you exclusive legal ownership for 10 years, with the option for renewal. This means no one else can legally use your trade mark without your permission. If you have a business name that you’re attached to, securing it as a trade mark is essential, since registering it as a business name alone won’t prevent someone else from trademarking it.
The trade mark process can be complex. It involves conducting thorough research, checking availability, and filing an application with the correct trade mark classes. To ensure everything is done correctly and efficiently, it’s best to seek help from a legal expert who can guide you through the process and help protect your brand.
What Kind Of Licence Do I Need To Start A Lash Extension Business?
There isn’t a specific licence required to start a lash extension business in Australia; however, you may still need to obtain local permits and approvals.
Whether you’re operating from a home salon, a commercial space, or offering mobile services, it’s important to check with your local council to ensure you meet all regulatory requirements. Each council has different rules, so if you’re conducting business in multiple areas, you’ll need to research the specific requirements for each location.
Depending on your council, this may involve:
- Obtaining relevant permits or approvals
- Complying with operating hours
- Adhering to noise regulations
- Following waste management rules
Taking the time to understand and comply with local regulations will help ensure your business runs smoothly and avoids any potential legal issues. If you need help understanding your obligations, it’s always best to reach out to a legal expert for guidance.
Will My Lash Extension Business Need To Follow Any Other Laws?
Yes, in addition to local regulations, there are several key laws your lash extension business must comply with, including:
- Australian Consumer Law: Ensures you provide fair and safe services to customers, including clear pricing and refund policies.
- Employment Law: If you hire staff, you must follow minimum wage laws, workplace safety regulations, and employment contracts.
- Intellectual Property: Protect your business name, logo, and branding with a trade mark to prevent others from using them.
- Data & Privacy Law: If you collect customer details, you must comply with privacy laws to ensure their data is stored and used correctly.
- Industry-Specific Regulations: Check chemical safety requirements and ensure all products you use are legally permissible.
While these are general guidelines, every business is unique, so it’s best to seek legal advice tailored to your specific needs. For example, even if you don’t plan to hire employees, you still need to ensure your lash adhesives and chemicals meet legal safety standards.
Do I Need Any Contracts To Start A Lash Extension Business?
No matter the size of your lash extension business, having strong contracts in place is essential. The right legal agreements can help protect your business, set clear expectations, and support long-term growth. On the other hand, operating without proper legal agreements – or using ones that don’t suit your business – can put your business at risk.
Getting the right legal agreements and ensuring they are well-drafted is crucial. Here are some key agreements to consider:
- Supply Agreement: Outlines terms with suppliers for products like lash adhesives, tools, and salon equipment.
- Service Agreement: Defines the terms of service between you and your clients, covering pricing, liability, and refund policies.
- Business Terms & Conditions: Helps set clear expectations and policies for your customers, including payment terms and cancellations.
- Employment Agreements: If you hire staff, this agreement ensures roles, wages, and workplace rights are clearly defined.
- Privacy Policy: If you collect customer details (e.g., for bookings or marketing), a privacy policy ensures compliance with data protection laws.
- Non-Disclosure Agreement (NDA): Protects confidential business information, such as training techniques and supplier agreements.
Ensuring your legal agreements are properly structured and tailored to your business needs can save you time, money, and potential legal trouble in the long run.
Key Takeaways
A lash extension business has the potential to be an exciting and profitable venture, but it’s essential to ensure your business is legally protected from the start. Taking the right legal steps early on will help you avoid risks, stay compliant, and set your business up for long-term success. To summarise what’ve we’ve discussed:
- Choose the right business structure for your lash extension business: sole trader (easy, cheaper, less protection) or company (limited liability, more complex).
- Register your business and business name, but remember, this doesn’t grant ownership – secure a trade mark to fully protect your brand.
- Check with your local council for required permits, approvals, and operational rules specific to your location.
- Ensure compliance with Australian Consumer Law, employment regulations, intellectual property, data privacy, and chemical safety standards.
- Set up essential legal agreements such as service agreements, supply contracts, terms & conditions, privacy policies, and NDAs.
- Create a detailed business plan to stay organised, manage risks, and establish clear business objectives from day one.
- Seek advice from legal experts to ensure your lash extension business is fully compliant and protected.
If you would like a consultation on starting a lash extension business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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