Start a Salon: Costs & Steps (2026)

State Cosmetology / Barbering License (Individual)

Every stylist, barber, nail technician, or esthetician must hold a state license in the category they practice. This requires completing a state-approved training program and passing written and practical exams.

• •Training hours required: 1,000–2,100 hours depending on state and specialty (cosmetology vs. barbering vs. esthetics)
• •License fee: $25–$150 initial fee; renewal $25–$100 every 1–2 years
• •State examples: California Board of Barbering and Cosmetology ($50 license fee); Texas Department of Licensing and Regulation ($25 per license type); New York ($40 cosmetology license)
• •License reciprocity: Some states accept out-of-state licenses with supplemental training; others require full re-licensing

Salon / Barbershop Establishment License

In addition to individual practitioner licenses, the salon or barbershop itself must be licensed as a business establishment by the state cosmetology board. This is separate from your city business license.

• •Cost: $25–$300 initial; renewal $25–$200 annually or biennially
• •Inspection required: State inspector verifies sanitation equipment (sterilizers, disinfectant solutions, towel storage) and ventilation before issuing license
• •Who issues: State cosmetology or barbering board (e.g., California Board of Barbering and Cosmetology, Texas Dept. of Licensing and Regulation)

Continuing Education Requirements

Most states require continuing education (CE) hours for license renewal. Hours and approved topics vary by state.

• •Hours required: 4–16 CE hours per renewal period (typically every 2 years)
• •Approved topics: State law updates, sanitation and infection control, chemical safety, business practices
• •Cost: $50–$200 per renewal cycle; many online CE courses available
• •States without CE: Texas, Arkansas, and a few others have no CE requirement as of 2026 — check your state board website

Booth Rental vs. Employee Model

One of the most important business decisions for salon owners: will stylists be employees or independent contractors renting booth space? This has major legal, tax, and operational implications.

California AB5 (2020) has strict independent contractor classification rules — many California salon owners have switched to the employee model to avoid misclassification penalties.

Sanitation Requirements

State boards have specific requirements for tool sterilization, disinfectant solutions, and sanitation records. Non-compliance can result in fines or license suspension.

• •Autoclave or UV sterilizer: Required for metal tools in most states; $200–$800
• •Barbicide/EPA-registered disinfectant: Required in wet disinfectant jars; must be changed daily
• •Shampoo bowls: Hot/cold running water at each station; drain to municipal sewer
• •Posted licenses: Individual and establishment licenses must be visible to clients