By the time a woman turns 30, she's been robbed of $40,562 just for being a woman. Every year, a woman spends approximately $1,351 more than a man for simple products including t-shirts, personal care items, and services because of inflated pricing, known as the Pink Tax. It's egregious!
The Pink Tax first came to my attention just last year, and I was beyond astonished to hear that this “buried tax" exists. The Pink Tax is yet another daily hurdle for women that prevents them from gaining control of their money and more importantly, their life.
Once I knew about the Pink Tax, I immediately wanted to educate myself on the topic because it didn't make sense that women pay more for products targeted to women and make less money than men on top of it. (In 2017, women earned 82% of what men earned according to a Pew Research Center analysis of median hourly earnings of both full- and part-time workers in the United States.)
In my research, I learned that the Pink Tax starts showing up early in life with baby bottles and pacifiers and continues through adulthood with dry-cleaning and many personal care products like shampoos, conditioners, and deodorants. It even applies to senior healthcare products. I thought, why should a pink cane marketed to women cost more than a different colored one sold to men?
I was outraged but inspired to do something. I started by telling friends just to see their reactions and gauge awareness around the Pink Tax. They shared my astonishment and were horrified how this could be going on right under our noses.
This also became a time to reflect on my own successes and challenges in my professional career. I've had many successes fueled by my passion, determination, and ability. However, I've also faced many challenges head-on because of roadblocks in my way, often specifically because I am a woman.
Let it be known I have never been put off by being “the only woman in the room" because I've always seen myself as a skilled professional rather than a person defined by gender. However, along the way, there have been many misperceptions about me, including my ambitions and aspirations, just because I am a woman.
I am a fervent believer in equality. Period. It is a strong belief of mine that society suffers when one group is disadvantaged because of being labeled or treated as “less than." The Pink Tax impacts each and every woman in the U.S., forcing us to pay more for basic necessities, for the mere fact of being a woman. It's time to raise awareness about this type of inequality that women unknowingly face every day. European Wax Center decided to take the lead because we believe that with awareness comes the ability to make educated decisions and purchases.
As a woman-centric brand, we wanted to give our voices to issues that matter. On April 2, 2018, we set out to raise mass awareness and education about this issue, inspire women to make more empowered purchasing decisions and to advocate for equal prices for equal products. We exist to help women feel unapologetically confident, and we want all women to feel they can be confident not only in their own skin but also in demanding a leveled playing field.
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By further educating ourselves, we discovered women pay more than men 47 percent of the time for the same products and services.
This can be seen in the results of a study by the New York Department of Consumer Affairs “From Cradle to Cane: The Cost of Being a Female Consumer," that compared nearly 800 products from more than 90 brands. This study found a striking price difference in items marketed to women. To start, female-branded deodorants and razors cost more 56 percent of the time, and on average, women pay 7 percent extra for everyday products and services. For example, women pay an average of $2.71 more than men on shampoo.
One of the pervasive aspects of the Pink Tax is that it's not easy to find out about the price differences unless you're looking for it. The onus is on the consumer, which is disconcerting because if you don't know about the Pink Tax, you don't know to look for it. Here are a few more facts that demonstrate how the Pink Tax impacts our lives from birth through adulthood:
Girls' toys cost more 55 percent of the time, while boys' toys cost more only 8 percent of the time. On average, the largest price discrepancy was in helmets and knee/elbow pads, with girls' versions priced 13 percent higher.
Girls' clothing cost more 26 percent of the time, while boys' clothing cost more 7 percent of the time. Girls' items cost more in seven of nine clothing product categories.
Women's clothing cost more 40 percent of the time, while men's clothing cost more 32 percent of the time. The clothing product category that had the largest price difference by percent was women's shirts, which cost 15 percent more on average than men's shirts.
Senior/Home healthcare products cost more for women 45 percent of the time and cost more for men 13 percent of the time. For example, women's braces, on average, cost 15 percent more than men's.
One of the best ways for us to help others understand this issue was to lean heavily on social media where others are sharing their own surprise, outrage, and gratitude for learning about the Pink Tax.
We also wanted to do our part in helping to level the playing field for women. As a brand that was doing so well, it was a moment to also do good for others. We joined forces with the Fashion Institute of Technology, Girls In Tech and Beauty Changes Lives to support women in realizing their dreams and to give them as much advantage as possible along the way.
I encourage everyone to use their knowledge of unfair gender pricing to help avoid the Pink Tax, but in many instances, that is easier said than done. There is value and hope in a consumer movement, that includes both men and women, who through their voices and actions show others that the road to long-term profitability and loyalty is through gender-neutral pricing.
Business entities can be defined as the corporate, tax and legal structures which an organization chooses to officially follow at the time of its official registration with the state authorities. In total, there are fifteen different types of business entities, which would be the following.
- Sole Proprietorship
- General Partnership
- Limited Partnership or LP
- Limited Liability Partnership or LLP
- Limited Liability Limited Partnership or LLLP
- Limited Liability Company or LLC
- Professional LLC
- Professional Corporation
- Nonprofit Organization
- Cooperative Organization
As estates, municipalities and nonprofits do not concern the main topic here, the following discussions will exclude the three.
Importance of the State: The Same Corporate Structure Will Vary from State to State
All organizations must register themselves as entities at the state level in United States, so the rules and regulations governing them differ quite a bit, based on the state in question.
What this means is that a Texas LLC for example will not operate under the same rules and regulations as an LLC registered in New York. Also, an LLC in Texas can have the same name as another company that is registered in a different state, but it's not advisable given how difficult it could become in the future while filing for patents.
To know more about such quirks and step-by-step instructions on how to start an LLC in Texas, visit howtostartanllc.com, and you could get started with the online process immediately. The information and services on the website are not just limited to Texas LLC organizations either, but they have a dedicated page for guiding fresh entrepreneurs through the corporate tax structures in every state.
Sole Proprietorship: Default for Freelancers and Consultants
There is only one owner or head in a sole proprietorship, and that's what makes it ideal for one-man businesses that deal with freelance work and consulting services. Single man sole proprietorships are automatic in nature, therefore, registration with the state is unnecessary.
Sole proprietorships are also suited to a degree for singular teams such as a small construction crew, a group of handymen, or even miniature establishments in retail. Also, this puts the owner's personal financial status at jeopardy.
Due to the fact that a sole proprietorship entity puts all responsibilities for paying taxes and returning loans, it directly jeopardizes the sole proprietor's personal belongings in case of a lawsuit, or even after a failed loan repayment.
This is the main reason why even the most miniature establishments find LLCs to be a better option, but this is not the only reason either. Sole proprietors also find it hard to start their business credit or even get significant business loans.
General Partnership: Equal Responsibilities
The only significant difference between a General Partnership and a Sole Proprietorship is the fact that two or more owners share responsibilities and liabilities equally in a General Partnership, as opposed to there being only one responsible and liable party in the latter. Other than that, they more or less share the same pros and cons.
Registration with the state is not necessary in most cases, and although it still puts the finances of the business owners at risk here, the partnership divides the liability, making it a slightly better option than sole proprietorship for small teams of skilled workers or even small restaurants and such.
Limited Partnership: Active and Investing Partners
A Limited Partnership (LP) has to be registered with a state and whether it has just two or more partners, there are two different types of partners in all LP establishments.
The active partner or the general partner is the one who is responsible and liable for operating the business in its entirety. The silent or investing partner, on the other hand, is the one who invests funds or other resources into the organization. The latter has very limited liability or control over the company's operations.
It's a perfect way for investors to put their money into a sector that they are personally not experienced with, but have access to people who do. From the perspective of the general partners, they have similar responsibilities and liabilities to those in a general partnership.
It's the default strategy for startups to find funding and as long as the idea is sound, it has made way for multiple successful entrepreneurial ventures in the recent past. However, personal liability still looms as a dangerous prospect for the active partners to consider.
Limited Liability Company and Professional LLC
Small businesses have no better entity structure to follow than the LLC, given that it takes multiple good ideas from various corporate structures, virtually eliminating most cons that are inherent to them. Any and all small businesses that are in a position to or are in requirement of signing up with their respective state, usually choose an LLC entity because of the following reasons:
- It removes the dangerous aspect of personal liability if the business falls in debt or is sued for reparations
- The state offers the choice of choosing between corporation and partnership tax slabs
- The limited legalities and paperwork make it suited for small businesses
While more expensive than a general partnership or a sole proprietorship, a professional LLC is going to be a much safer choice for freelancers and consultants, especially if it involves risk of any kind. This makes it ideal for even single man businesses such a physician's practice or the consultancy services of an accountant.
B, C and S-Corporation
By definition, all corporation entities share most of the same attributes and as the term suggests, they're more suited for larger or at least medium sized businesses in any sector. The differences between the three are vast once you delve into the tax structures which govern each entity.
However, the basic differences can be observed by simply taking a look at each of their definitive descriptions, as stated below.
C-Corporation – This is the default corporate entity for large or medium-large businesses, complete with a board of directors, a CEO/CEOs, other executive officers and shareholders.
The shareholders or owners are not liable for debts or legal dispute settlements in a C-Corporation, and they may qualify for lower tax slabs than is possible in any other corporate structure. On becoming big enough, they also have the option to become a publicly traded company, which is ideal for generating growth investments.
B- Corporation – the same rules apply as a C-Corporation, but due to their registered and certified commitment to social and environmental standards maintenance, B-Corporations will have a more lenient tax structure to deal with.
S-Corporation – Almost identical to a C-Corporation, the difference is in scale, as S-Corporations are only meant for small businesses, general partnerships and even sole proprietors. The main difference here is that due to the creation of a pass-through entity, aka a S-Corporation, the owner/owners do not have liability for business debt and legal disputes. They also are not taxed on the corporate slab.
Cooperative: Limited Application
A cooperation structure in most cases is a voluntary partnership of limited responsibilities that binds people in mutual interest - it is an inefficient structure due to the voluntary nature of its legal bindings, which often makes it unsuitable for traditional business operations. Nevertheless, the limited liability clause exempts all members of a cooperative from having personal liability for paying debts and settling claims.
This should clear up most of the confusion surrounding the core concepts and their suitability. In case you are wondering why the Professional Corporation structure wasn't mentioned, then that's because it has very limited applications. Meant for self-employed, skilled professionals or small organizations founded by them, they have less appeal now in comparison to an LLC or an S-Corporation.