You booked six facials this week, sold three jars of retinol at the counter, took two Venmo tips, and owe your suite landlord $850 on the first. The bank account behind all of that should make each flow easy to see and easy to reconcile at tax time. Skincare specialists are a distinct occupational category tracked by the US Bureau of Labor Statistics, and the profession is projected to grow faster than the average for all occupations over the coming decade.

What should estheticians look for in a business bank?

Before you sign up anywhere, price out the fees on the transactions you actually do. A $75 facial with a $15 outgoing wire fee just gave up 20% of the ticket. The five line items that quietly drain esthetician accounts are monthly maintenance, overdraft, outgoing wires, out-of-network ATM withdrawals, and paper statement fees.

Then check integrations. Most estheticians run card payments through Square, Stripe, or a booking platform like Vagaro, GlossGenius, or Fresha. Your business account needs to connect to those rails cleanly so service revenue, retail product sales, and gift card sales all land in one place.

A few more things worth checking:

• Invoicing built in. If you sell packages, chemical peel series, or wholesale-to-friends retail, you want to send an invoice without paying for a separate tool.
• Cash reality. If clients tip you in cash, confirm whether the account accepts cash deposits. Some fintech accounts, including Novo, do not.
• Sub-accounts or buckets so you can allocate money for state and local sales tax on retail product sales before you accidentally spend it.
• FDIC insurance on deposits at the partner bank, and a clear way to verify the coverage limit.

Why does Novo work for solo estheticians and small spa owners?

Novo business checking has no monthly maintenance fee and no minimum balance requirement.

If you're a booth renter with a quiet week between holidays, the account doesn't punish you for it.

Here is how the specific features line up with an esthetician's day-to-day:

Card and retail revenue in one place. Novo integrates with Stripe, Shopify, and QuickBooks, and connects with Square through the Novo app store. Revenue from booking tools, card processors, and retail channels can be routed into the same business checking account when those tools support payouts to Novo.

Reserves for the money that isn't really yours. Novo Reserves is a budgeting feature within the Novo checking account that lets account holders divide their balance into named buckets. Two buckets almost every esthetician should set up: one for state sales tax on retail product sales, and one for quarterly self-employment tax. Allocate a percentage of each deposit to those Reserves as revenue lands, and the money is earmarked when the state and the IRS come asking.

Unlimited free invoicing. Send invoices for service packages, product sales, gift cards, or supplier billing directly from the account. No per-invoice fee, no separate subscription.

Scheduled ACH for booth rent and suite lease. Set up a recurring ACH transfer once and monthly rent goes out on time without you thinking about it. ACH payments are governed by Nacha operating rules.

The tradeoff to know up front. Novo does not accept cash deposits. If a client tips you $40 in cash, you can't walk it into a branch. The common workaround is to buy a money order at a post office or grocery store with the cash, then deposit the money order via mobile check deposit in the Novo app. If your book is heavily cash-tipped, keep a second cash-friendly account at a nearby credit union or big bank for deposits, and sweep to Novo periodically.

How do you open a business bank account as an esthetician?

The order matters. Do these steps in sequence to reduce application back-and-forth.

1. Pick your structure. Sole proprietorship, LLC, or S-corporation. Solo estheticians often start as sole proprietors and may consider an LLC as revenue grows or liability concerns become more important. The SBA publishes plain-English guidance for planning and setting up a small service business.

2. Register with your state if your structure requires it. LLCs file Articles of Organization with the Secretary of State; sole props usually just need a DBA if you operate under a name other than your own.

3. Get an EIN from the IRS. It's free, the online application takes about 10 minutes, and the number is issued at the end of the session.

You'll use it to open the business account and to file taxes.

4. Gather your documents. Government ID, EIN confirmation letter (Form CP 575), and formation documents (Articles of Organization for LLCs, or DBA registration for sole props operating under a trade name).

5. Apply online with Novo. US-based applicants 18 or older with a valid SSN or ITIN can apply for Novo online, and there is no minimum opening deposit.

After approval, Novo provides account details you can use to start receiving business deposits.

6. Connect your payment, sales, and bookkeeping tools. Connect Stripe, Shopify, QuickBooks, and Square (via the Novo app store). If you use Vagaro, GlossGenius, or Fresha, connect the underlying card processor those platforms use for payouts.

How should estheticians manage business finances?

The bookkeeping habits below take about 15 minutes a week and make tax season boring in the good way.

Separate service revenue from retail revenue. Facials, waxing, peels, dermaplaning, and lash services are service income. Selling a client the cleanser they used in the treatment room is retail. The margins are different, and retail product sales often trigger state and local sales tax, while treatment services may be taxed differently depending on your state and locality.

Track tips separately, whether card or cash. The IRS treats tips as taxable income regardless of how they're paid, and self-employed estheticians report tip income on Schedule C.

A simple approach: add a "Tips" income category in your bookkeeping and tag every deposit that includes a tip line.

Reserve for sales tax as you sell. If your state charges 6% sales tax on retail skincare, allocate 6% of each retail sale to a Novo Reserve labeled "Sales Tax." When the filing deadline hits, whether monthly, quarterly, or annually depending on your state, the money is already earmarked inside your checking balance.

Budget line items estheticians forget:

• License renewal fees (state cosmetology board)
• Continuing education hours, if your state licensing board requires them
• Professional liability insurance
• Product restock (backbar and retail)
• Autoclave supplies, gloves, disposables

Pay booth rent with a scheduled ACH. If you pay a suite landlord $850 on the first, set a recurring ACH transfer through Novo. It runs through the ACH network and creates a record you can match to your rent deduction.

Here's a copy-ready invoice template for a facial service plus a retail add-on. Paste it into your bookkeeping notes or send it as-is:

INVOICE

From: [Your Business Name, LLC]
[Address]  |  [Phone]  |  [Email]
License #: [State License Number]

Bill to: [Client Name]
Invoice #: [0001]
Date of service: [MM/DD/YYYY]
Due date: [MM/DD/YYYY]

Services
- Signature Facial (60 min) ............... $110.00
- Add-on: LED therapy ....................... $25.00
Services subtotal ........................... $135.00

Retail products (subject to sales tax)
- Vitamin C serum, 30ml ..................... $68.00
Retail subtotal .............................. $68.00
Sales tax ([X]%) ............................. $[X.XX]

Tip (optional) ............................... $______

TOTAL DUE ................................... $[XXX.XX]

Payment: Card, ACH, or check payable to [Business Name]
Thank you. Rebook within 5 weeks for $10 off your next service.

Use this as a starting point for a spreadsheet or PDF invoice; check the sales tax and total formulas before sending it to a client. Estheticians who also do lash or hair work sometimes borrow structure from a hair salon invoice template or a massage therapist invoice template when their services overlap.

What are the alternatives to Novo for estheticians?

Traditional big banks (Chase, Bank of America, Wells Fargo). The main advantage is branch access, so you can walk in cash tips and deposit them. The tradeoff is fees. Most business checking accounts at big banks carry monthly maintenance fees in the $15 to $30 range unless you keep a minimum balance (often $1,500 to $5,000) or hit a monthly deposit threshold. On a slow month, that fee eats into your net.

Payment software such as Square or Stripe. These are useful as payment processors if most of your client payments run through them. They handle card checkout, but they are payment acceptance tools, not primary business banking. For banking, compare Novo against legacy business checking accounts based on monthly fees, cash deposits, ACH transfers, and bookkeeping integrations.

Personal checking used for business. Mixing personal and business money makes tax filing harder and, for LLC owners, can weaken the liability protection your entity is supposed to provide. The IRS advises small business owners to keep business and personal finances separate for accurate recordkeeping.

For an esthetician performing chemical peels or microneedling, the liability protection matters; don't compromise it to save a few minutes on account setup.

Frequently asked questions

Do estheticians need a business bank account as a sole proprietor? Not legally required, but the IRS recommends keeping business and personal finances separate for accurate recordkeeping. For LLC owners, a separate account is required in practice to preserve the liability protection your entity provides. Commingling funds is one of the fastest ways to have that protection challenged.

Can I deposit cash tips into Novo? No. Novo does not accept cash deposits. The common workaround is to buy a money order at a post office, grocery store, or check-cashing location using the cash, then deposit the money order through mobile check deposit in the Novo app. If cash tips are a large share of your income, keep a second cash-friendly account for deposits.

What's the best way to accept card payments as an esthetician? Most estheticians use Square, Stripe, or a booking platform (Vagaro, GlossGenius, Fresha) that processes card payments through a mainstream processor. Novo integrates with Stripe, Shopify, and QuickBooks, and connects with Square via the Novo app store, so the card deposits land in your business checking automatically.

How do I handle sales tax on retail skincare product sales? Retail product sales are generally subject to state and local sales tax that you collect from the client at the register and remit to your state on a monthly, quarterly, or annual schedule. Create a Novo Reserve labeled "Sales Tax," allocate the tax percentage to it with each retail sale, and pay the state from your checking balance when the filing is due.

Is my money FDIC-insured with Novo? Novo is a fintech, not a bank itself. Deposits are insured for up to $250,000 through our partner bank, Middlesex Federal Savings, Member FDIC.

Do I need an EIN if I'm a solo esthetician? A sole proprietor with no employees can technically use an SSN, though many business account applications ask for an EIN. The EIN is free from the IRS and takes about 10 minutes to apply for online, so many solo estheticians get one before opening a business account.

How do I pay my booth rent from Novo? Set up a scheduled ACH transfer from your Novo checking to your landlord's account. It runs through the ACH network under Nacha rules and hits on the same day each month without you having to remember.

What is the best bank account for estheticians?

Novo is a strong business bank account for card-heavy solo estheticians and small spa owners because it has no monthly fee, built-in invoicing, Reserves, scheduled ACH transfers, and integrations with Stripe, Shopify, QuickBooks, and Square. The one honest limit is cash deposits, which Novo doesn't accept, so plan for money-order conversion or keep a secondary cash-friendly account if tips run heavy.