How to open a hair salon

Rules and prices checked on official and published pages on 2 and 3 October 2026. They change and vary by state, so follow the links before you rely on them. This is a planning guide, not legal or tax advice.

What you get here: the order to do things in, so nothing blocks you on opening week. A step-by-step checklist from license to launch, a startup cost table that only shows numbers we could check on the source’s own page, booth rent versus commission in plain words, and an 8-week marketing countdown.

The opening checklist, in order

Most guides list the steps. The order matters more, because some steps can’t start until another is done. You can’t get a salon license without an address, and you shouldn’t sign a lease before you know the space can pass inspection.

#	Step	Typical timing	Why this order
1	Call your state board about salon license rules	Before you look at spaces	Rules on sinks, floor space and inspections shape which spaces work
2	Choose a business structure and register it	4 to 6 months out	You need the legal name for the lease, bank account and EIN
3	Get your free EIN from the IRS	Right after registering	Needed to hire employees
4	Write a business plan and startup budget with quotes	Before signing anything	Rent and build-out decide whether the numbers work
5	Find a location and negotiate the lease	3 to 5 months out	Ask for a rent-free build-out period and the right to use the space as a salon
6	Get insurance quotes, bind before you get keys	When the lease is signed	Landlords and some states require proof of coverage
7	Build out the space and pass local permits	2 to 4 months out	Plumbing, electrical and accessibility work needs permits
8	Apply for the salon license and book the inspection	When the space is nearly done	Boards differ on when they inspect, so ask yours
9	Order equipment and opening stock	As soon as the layout is fixed, during build-out	Lead times on chairs and shampoo units can be long
10	Pick your staffing model and hire	8 weeks out	Booth rent or commission changes your paperwork and pricing
11	Set up booking, payments and policies	6 to 8 weeks out	Clients need a link before they can book
12	Run the pre-opening marketing countdown	8 weeks out to opening day	So clients can find you and book before you open

A planning guide, not a rule. Your board, landlord and contractor set the real dates. Each step is explained below.

Step 1: Licenses and permits

There are usually three layers. Check all three.

1. The salon license from your state board. Most states license the salon itself (often called an establishment, shop or salon license) as well as each stylist. Requirements, fees and inspections vary by state. Find your state’s board on the National Interstate Council of State Boards of Cosmetology map, then read its salon or establishment page and call if anything is unclear.
2. Your city and county. A general business license, zoning approval for a salon use, and often a certificate of occupancy after build-out. The SBA says the licenses you need from your state, county or city depend on what you do and where, and suggests starting with your Secretary of State’s website.
3. Sales tax. If you’ll sell retail products, most states require a sales tax permit. Ask your state’s revenue department.

Two examples of how much states differ, checked today:

• California: the Board of Barbering and Cosmetology’s establishment application has a $50 nonrefundable application fee and a $40 renewal fee (application form).
• New York: an appearance enhancement business license costs $60 and lasts four years. New York also requires a surety bond or liability insurance of at least $25,000 per occurrence and $75,000 aggregate, a wage bond if you employ the equivalent of two or more full-time staff doing nail services, and a sign at the entrance saying the business is licensed (NY Department of State).

Before you sign a lease: ask your state board what a salon must have to pass inspection (sinks, restroom, floor space, ventilation, storage) and whether the space can meet it. A space that fails costs you rent while you fix it.

Step 2: Business structure and EIN

Business structure. The SBA’s guide covers the options: sole proprietorship, partnership, LLC, and corporations including S corps. The choice affects your personal liability, taxes and paperwork, and the SBA says business counselors, attorneys and accountants can help you choose. We’d do the same. Register with your state, usually through the Secretary of State.

EIN. Your Employer Identification Number is your business’s federal tax ID. You’ll need it to hire employees. It’s free: the IRS says you never have to pay a fee for an EIN, and warns about websites that charge for one. Apply on irs.gov in one sitting (the form times out after 15 minutes of inactivity) and you get the number straight away.

Then open a business bank account and keep salon money separate from personal money from day one.

Step 3: Business plan and funding

A written plan makes you decide the details before money is spent: services and prices, who your clients are, how many chairs you need filled to cover rent, and where the opening money comes from. Lenders will usually ask for one. The SBA’s business plan guide has a free outline, and its loans page explains SBA-backed loan programs and how to find a lender. Our salon business plan guide walks through each section with a sample budget and the numbers a lender checks.

If the numbers for a full salon don’t work yet, renting a salon suite or a booth first is a lower-cost way to build a client list before you sign a bigger lease.

Step 4: Insurance

The SBA says businesses with employees need workers’ compensation, unemployment and disability insurance, and that states can add their own requirements. Which of these you must carry, and the exemptions, differ by state, so check your own state’s rules (your state’s labor or insurance department) before you hire. As New York shows above, some states set minimum liability cover for salons.

Common policies for a salon:

• General liability: a client slips in the shampoo area.
• Professional liability: a chemical service goes wrong.
• Business owner’s policy (BOP): general liability plus property cover for your equipment and build-out in one bundle.
• Workers’ compensation: once you have employees.

Your lease will usually require a set amount of liability cover. Read that clause before you get quotes, so the quotes match it.

Step 5: Location and lease

The space decides most of your costs, so be picky.

• Visibility and parking. Clients search on Google Maps, then drive. Easy parking and a sign people can see from the road matter.
• Plumbing. Shampoo bowls need water and drains where you want them. Moving plumbing can be costly.
• Power and ventilation. Dryers and color processing need enough circuits and air flow.
• Zoning. Confirm with the city that a salon is allowed at that address before you sign.

Things to ask for in the lease: a rent-free period while you build out, a clause that the space can be used as a salon, who pays for which improvements, and what happens if permits are delayed. A commercial lease is a big commitment, so have an attorney read it before you sign.

Step 6: Build-out

Build-out turns an empty unit into a salon: plumbing for shampoo bowls, electrical, lighting, flooring, the front desk, dispensary, laundry and restroom.

• Get at least two written contractor quotes from the same drawings.
• Ask who pulls the permits and who books inspections.
• Plan for accessibility. The ADA requires new construction and alterations by businesses open to the public to be accessible, and mentions tax incentives that may help small businesses with accessibility costs.
• Build in a time buffer. Inspections and backordered parts move dates.

Step 7: Equipment and opening stock

Price these from at least two suppliers, and check delivery times:

• Styling chairs and stations, mirrors, shampoo bowls and chairs, dryers
• Front desk, waiting seating, retail shelving
• Color bar or dispensary, sterilization and disinfection supplies your state requires
• Washer and dryer for towels
• Tools, color and back-bar product, and a starter retail range

Order the long-lead items (chairs, shampoo units) as soon as the layout is fixed.

Step 8: Booking system and payments

Set this up 6 to 8 weeks before opening, so you can take bookings early. Use the salon booking website checklist to choose one booking path, then use its link everywhere: Google, Instagram, your website and texts. For what the website itself should look like, see our hair salon website examples.

Check that it can do these before you choose:

1. Online booking without the client making an account
2. Deposits or card on file, for your cancellation policy
3. Text reminders
4. A booking link you can add to your Google Business Profile
5. A calendar for each stylist, and reports on who rebooks

Published prices, as of October 2026: Square Appointments has a $0 Free plan, with card fees on each payment. GlossGenius lists $24, $48 or $148 a month billed yearly, with a flat 2.6% card processing rate. Check which tier has the features you need. At Square, no-show fees, multi-staff booking and the waitlist are on the paid Plus plan, not Free.

Write your cancellation and no-show policy before you open, so it’s in place from the first booking. Our salon no-show policy templates have wording you can copy.

Step 9: Staffing model, booth rent vs commission

This is one of the biggest choices you’ll make, because it changes your income, your control and your paperwork.

	Commission (employees)	Booth rent (renters)
How you earn	A share of each service the stylist does	A fixed weekly or monthly rent per chair
Who sets prices and hours	You	The renter
Who buys product	You	The renter
Whose clients	The salon’s	Mostly the renter’s
Your paperwork	Payroll, tax withholding, workers’ comp	Rental agreements, and making sure renters really run their own business
Brand and experience	You control it	Harder to keep consistent

The IRS looks at control, not labels. Start with its page on independent contractor or employee. Its tax guide for the cosmetology and barber industry applies this to salons: it says an employee works under your control and direction, and that you only need the right to control, not to use it all the time. It asks questions like: Do you set the hours? Who decides shifts? Who buys supplies? Who sets prices? Who books appointments? Who pays for insurance and advertising? If you decide those things, the stylist is likely your employee even if you call them a renter. Your state may use its own, stricter test, so check with an accountant or employment attorney before you choose.

Some salons mix models, or start with renters and move to commission later. Whatever you choose, put it in writing.

Startup cost table: what to budget for

The honest answer to “how much does it cost to open a hair salon?” is: it depends mostly on rent and build-out, and only local quotes can tell you that. Many cost guides print totals with no source. We only show numbers we could check on the source’s own page today. Everything else is a line to get quotes for, so your budget is built on your space and your city.

The SBA suggests splitting one-time costs from monthly costs, asking vendors and owners of similar businesses what they pay, and counting at least one year of monthly expenses. Use the tables as a worksheet: copy them and fill in the last column with your own quotes.

One-time costs

Line item	Published price (as of 2 Oct 2026)	Source	Your quote
EIN	$0	IRS
State salon license	California: $50 application ($40 renewal). New York: $60 for 4 years, plus required bond or insurance. Other states: see your board’s fee page	California board, New York DOS
Business registration (LLC or corporation filing)	The SBA says the total cost to register is usually under $300, varying by state and structure	SBA
City or county business license, zoning, certificate of occupancy	Get from your city and county	Your local government
Lease deposit and first month’s rent	Get quotes	Landlord or broker
Build-out (plumbing, electrical, flooring, lighting, front desk)	Get at least two written quotes	Contractors
Building permits	Ask your contractor and city	Your city
Styling stations, chairs, shampoo bowls, dryers	Get quotes from at least two suppliers	Salon equipment suppliers
Opening color, back-bar product and retail stock	Get quotes	Distributors
Exterior sign	Get quotes, and check sign permit rules	Sign makers, your city
Legal and accounting set-up	Get quotes	Attorney, accountant
Brand, website and launch marketing	See our salon marketing cost guide for published prices

Monthly costs

Line item	Published figure (as of 2 Oct 2026)	Source	Your quote
General liability insurance	Median about $35 a month ($420 a year) for hair salons	Insureon
Business owner’s policy (instead of general liability alone)	Median about $70 a month ($841 a year)	Insureon
Professional liability	Median about $42 a month ($500 a year)	Insureon
Workers’ compensation (with employees)	Median about $63 a month ($757 a year)	Insureon
Booking software	Square Free $0 (no-show fees need the paid Plus plan); GlossGenius $24 to $148 a month billed yearly; plus card fees	Square, GlossGenius
Rent, utilities, internet	Get quotes	Landlord, utilities
Payroll (commission model)	Depends on your team and pay plan	Your accountant
Product restock	Depends on services	Distributors
Marketing	See the salon marketing cost guide

Insureon’s figures are medians of policies bought by its own hair salon customers, so yours will differ with your location, services, staff, equipment value and limits. Insureon doesn’t publish the year or the number of policies behind these figures. Treat them as a rough guide and get your own quotes.

For scale, not as your budget: one haircut franchise publishes a total investment of $288,500 to $475,000 per store, including build-out, grand opening advertising, the franchise fee and six months of working capital (Sport Clips). An independent salon pays no franchise fee, and a smaller or second-generation space (one that was already a salon) can cost less to build out. It is also a haircut chain, so not a like-for-like comparison. It shows why the lease and build-out quotes are the numbers that matter.

Keep a reserve. The SBA says to count at least one year of monthly expenses when you plan. Have cash for several months of rent, payroll and insurance before the salon pays for itself. Plan for a slow start, and for a build-out that runs late.

The pre-opening marketing countdown

Many new salons start marketing the week they open. Start 8 weeks out instead, so clients can discover you and book before opening.

When	What to do
8 weeks out	Secure your Instagram handle and set up a profile with your name, area and “opening [month]”. Our salon Instagram bio ideas have wording that works. Choose and set up your booking system
8 to 6 weeks out	Create your Google Business Profile as soon as your address is final (it can show up to 90 days before opening) and add your opening date. Start a founding-client waitlist (a simple form or DM list)
6 to 4 weeks out	Post the build-out: before and after, the color bar going in, the team. List your services and prices
4 to 2 weeks out	Open online booking 2 weeks before opening day. Tell the waitlist first
Opening week	Daily stories, an opening reel, and ask every client for an honest Google review
After opening	Reply to every review, rebook clients before they leave, and post your work weekly

Google lets you get listed before you open. You can add an opening date up to a year ahead, and once you’re verified your profile shows on Google 90 days before that date. After you open it shows a “Recently opened” tag for 90 days (Google). Clients can’t leave reviews or photos until you’re officially open, so plan your review asks for opening week. Our Google Business Profile guide for hair salons walks through the full set-up.

Reviews from day one. Your first clients are your first reviews. Print a review QR code for the mirror and front desk with our free Google review QR code tool, and read how to get more Google reviews for the scripts and Google’s rules (no discounts for reviews, and ask every client, not just happy ones).

If you’d like a team to run this countdown with you, see how Winflow handles opening a salon: brand, Google profile, Instagram and booking ready before the doors open.

Common mistakes when opening a salon

1. Signing the lease before calling the state board. Then finding the space can’t pass inspection.
2. Budgeting from a national average. Your rent and build-out quotes are the only numbers that count.
3. Calling employees “booth renters”. The IRS looks at who controls the work. Get advice before you set it up.
4. No booking link until opening day. Clients who find you early have nowhere to book.
5. Waiting to set up Google. Verification can take time, and the profile can show 90 days before you open.
6. No reserve. A late inspection or a slow first month shouldn’t put the salon at risk.
7. Paying for an EIN. It’s free from the IRS.

Check your launch plan in 10 minutes

Once your Google profile, Instagram and booking link are live, run the free Salon Profile Check on your phone, the way a new client would, and fix what it finds before opening day. For what comes after launch, read how to get more clients for your hair salon. Already open and want a second pair of eyes? Ask for a free diagnostic: a real person reviews your Google profile, Instagram and booking path and sends you findings within 48 hours. Still planning? Start with opening a salon and book a launch planning call.