Ohio Esthetics State Board Practice Exam

In salon ownership, three common legal structures are sole proprietorship (individual ownership), partnership, and a corporation. A corporation stands out because it’s a separate legal entity from its owners. This separation means the owners’ personal assets are generally protected from business debts, and the business can continue even if an owner leaves. A corporation can also raise capital more easily by issuing shares, which is why it’s considered a distinct form of ownership suitable for larger or investment-driven operations. The other options describe business arrangements or models rather than ownership forms: a franchise is a brand/licensing arrangement, a joint venture is a temporary collaboration between entities, and a cooperative is owned and operated by its members. In typical classifications for salon ownership, the third category after individual ownership and partnership is corporation.