small business

Tax Checklist for Small Business – Nail Salons

Here is a checklist tailored to nail salons to help you gather information and get ready for tax reporting this year, whether you are preparing it yourself or consulting a tax professional. This checklist should be useful regardless if you are reporting your business with the Schedule C as part of for 1040 individual tax return or as a separate business tax return with Form 1120s.



·         Gross receipts from sales or services (bank statements or report from point-of-sale system)

·         Business checking/savings account interest (1099-INT or statement)

·         Other income (if applicable)

Cost of Goods Sold (if you are selling products)

·         Inventory

·         Beginning inventory total dollar amount

·         Inventory purchases

·         Ending inventory total dollar amount

·         Items removed for personal purposes


·         Advertising

·         Phone lines for nail salon

·         Computer & internet expenses (i.e. point of sale system)

·         Transportation and travel expenses to industry conferences

·         Depreciation

·        Cost and first date of business use of assets

·        Records relating to personal use of assets

·        Cost of new equipment purchased during the year

·         Business insurances

·         Interest expense

·        Mortgage interest on the salon if owned

·        Business loan interest

·         Professional fees

·        Lawyers, accountants, and consultants

·         Store supplies

·        Nail clippers, nail filers, gloves, acetone etc…

·         Rent expense

·        Salon space rent

·        Cost improve the store

·         Wages paid to employees and technicians

·        Form W-2 and W-3

·        Federal and state payroll returns (Form 940, Form 941, etc.)

·        Form 1099-MISC

·        Form 1096

·         Other expenses

·        Repairs, maintenance of office facility, etc

·        Estimated tax payments made

·        Other business related expenses