Whether your salon is structured as a booth rental salon or a commission salon, if run properly, you will make money with either structure. But don't let the IRS or their rules interfere with your financial goals.
Whenever I am consulting with a new client we always discuss the type of business structure they would like to implement. They always respond with "which is better commission or booth rent?" In my humble opinion, I don’t think one is better than the other, instead, one should choose a business model based on their overall goals and intended outcome.
I do believe that before you pick a particular model, you should do your research so that you pick the one that aligns closets to your overall goals.
Most salon owner's do not take the time to think about tax consequence of either model. That's where I come in.
When I talk about the tax consequence of your business model I am referring to the things you need to know regarding IRS compliance, and what you need to do to make sure there is a clear separation between you the salon owner and the booth renter so you can protect yourself if god forbid, you are ever audited by the IRS or state.