How to open a salon, barbershop or spa
Seven stages from idea to opening day for a salon, with the federal steps linked and the state and local steps explained.
Concept and numbers
Test the idea and the budget before you commit.
Draft your startup budget and break-even
Use your own numbers to see how much you need and what sales cover your costs. Revisit it as quotes come in.
Check that your name is available
Search your state’s business name records and the free federal trademark search before you print signs. This is research, not legal clearance for your salon’s name.
Talk to a free small business adviser
Small Business Development Centers and SCORE mentors offer free or low-cost counseling near you, including help with plans, budgets and local requirements.
Business setup
Register the business and its taxes.
Choose your business structure
Sole proprietorships, LLCs, corporations and partnerships differ in liability and taxes. The SBA’s guide compares them; an accountant or lawyer can help you decide.
Register your business with your state
LLCs, corporations, partnerships and nonprofits register with the state where they do business, and need a registered agent in that state. Sole proprietors may not need to register.
If you’ll use a different name, register it
A “doing business as” name is registered with your state, county or city, depending on where you are.
Get a federal EIN if you need one
An EIN is needed if you hire employees or operate as a corporation or partnership. It is free from the IRS; be wary of sites that charge for one.
Register for state taxes
Your state’s revenue department tells you which tax accounts you need, such as sales tax on products you sell (and services, where your state taxes them). Some cities and counties have their own taxes too.
Ask about a city or county business license
Many cities and counties require a general business license or registration in addition to state licenses. Ask your city or county business licensing office.
Your site
Find a location where your business is allowed.
Confirm zoning allows a salon at the address
Zoning can restrict or ban some kinds of businesses in an area. Check with your city’s planning or zoning office before you sign a lease.
Review your lease or ownership papers
Make sure the lease allows your use, and check who pays for build-out and required upgrades. Consider having a professional review it; OpeningIQ can’t give legal advice.
Plan for accessibility
Businesses open to the public must follow the ADA. New construction and alterations must be accessible, and barriers in existing spaces must be removed where that’s readily achievable. Small businesses may qualify for a tax credit.
Plans, permits and build-out
Get the approvals to build out and prepare the space.
If you’re renovating, get building permits
Build-outs and renovations generally need permits from your city or county building department, and some need plan review first. Ask before work starts.
Ask whether you need a certificate of occupancy
Many places require a certificate of occupancy, or a similar approval, before a new tenant or a new use opens. Your building department can tell you.
Ask the fire department about inspections
Ask your local fire department or fire marshal whether your space needs an inspection or permit before you open, for example for occupancy limits and exits.
If you’ll put up an exterior sign
Ask your city or county whether your sign needs a permit before you order it.
Licenses
Get the licenses that let you open.
Make sure everyone doing services is licensed
States license cosmetologists and barbers, and usually other beauty services such as nails and skin care. Confirm each person’s license is current and covers the services they’ll offer.
Ask whether the salon needs its own license
In many states the salon or shop itself also needs a license and an inspection before it opens. Your state board can tell you what applies.
Get ready to open
Cover people, insurance and suppliers.
Decide how stylists will work with you
Employees and booth renters are treated differently for taxes and licensing. Read the IRS guidance and get advice before you choose.
If you’ll hire, register as an employer with your state
States run unemployment insurance tax, and states with an income tax also require withholding. Your state’s labor and revenue departments set up employer accounts.
If you’ll hire, set up federal payroll taxes
Withhold federal income tax using each employee’s Form W-4, pay Social Security and Medicare taxes, and pay federal unemployment (FUTA) tax, which isn’t withheld from pay.
Complete Form I-9 for every hire
Employers verify each new employee’s identity and authorization to work on Form I-9 and keep it on file.
Report new hires to your state
Report each new employee to your state’s new hire directory within 20 days of hiring; some states require it sooner.
Get workers’ compensation insurance
Most states require workers’ compensation insurance once you have employees, and the rules vary by state.
Put up required workplace posters
Which federal posters you need depends on the laws that cover you; the Labor Department’s free Poster Advisor tells you. States have their own posters too.
Set up chemical safety for your staff
Employers with hazardous chemicals at work, such as salon products, need labels, safety data sheets and training so staff understand the hazards.
Arrange business insurance
Ask an insurance broker what coverage your lease, lender and licenses call for. This is an OpeningIQ suggestion, not an agency requirement.
Line up stations, equipment and product suppliers
Get quotes early and compare terms. Check that products come with safety data sheets.
Check every approval is in hand
Gather your salon license, staff licenses, business licenses and certificate of occupancy in one place, and confirm each matches your address and business name.
Open and stay current
Keep licenses, permits and filings current.
Keep licenses and inspections current
Renew the salon’s and each person’s licenses on time, and expect inspections from your state board.
Track these steps in a free private plan
Save your progress, notes and target dates, and see your next step at a glance. Your plan stays private and is never shared with suppliers.