Starting a beauty salon requires additional licensing before opening than most businesses. Every state requires a professional license before someone works with hair, skin and nails. Additionally, there are licenses and permits needed to open a business. Learn more about the licenses and permits that are needed to start a beauty salon. Professional Licensing for Cosmetologists In order to provide beauty services such as hair cutting, shampooing, coloring, makeup, hair removal, manicure and other services, all states require the individual to get a cosmetology license. The requirements to get a barber license varies by state, but generally require: A high school diploma or GED The individual to be at least 16 years of age Education from a state approved cosmetology program Some states also require an apprenticeship with a licensed cosmetologist Passing state exam(s), which often includes both a written and practical exam While similar to the requirements of a cosmetologist, there is separate licensing for barbers. How much does it cost to get a cosmetology license? The fee for a cosmetology license will vary by state but is typically between $50 and $400. Cosmetologist Examination In order to become a licensed cosmetologist barber, almost all states require the passing of an exam(s). Many states utilize the NIC (National-Interstate Council of State Boards of Cosmetology) National Cosmetology Practical Examination. This standardized exam covers topics such as infection control, haircutting, chemical waving, facial, manicure, hair removal and more. Find more information about state cosmetology licenses below: Alabama Board of Cosmetology & Barbering Alaska Board of Barbers and Hairdressers Arizona State Board of Cosmetology Arkansas Department of Health California Board of Barbering and Cosmetology Colorado Office of Barber and Cosmetology Licensure Connecticut Board for Barbers, Hairdressers and Cosmeticians Delaware Board of Cosmetology and Barbering Florida Board of Cosmetology Georgia State Board of Cosmetology and Barbers Hawaii Board of Barbering and Cosmetology Idaho Barber and Cosmetology Services Licensing Board Illinois Department of Financial and Professional Regulations Indiana State Board of Cosmetology and Barber Examiners Iowa Board of Cosmetology Arts & Sciences Kansas Board of Cosmetology Kentucky Board of Cosmetology Louisiana Board of Cosmetology Maine Department of Professional & Financial Regulation Maryland Department of Labor Massachusetts Board of Registration of Cosmetology and Barbering Minnesota Board of Cosmetology Mississippi State Board of Cosmetology Missouri Board of Cosmetology and Barber Examiners Montana Board of Barbers and Cosmetologists Nebraska Department of Health and Human Services Nevada Board of Cosmetology New Hampshire Board of Barbering, Cosmetology and Esthetics New Jersey State Board of Cosmetology and Hairstyling New Mexico Board of Barbers and Cosmetologists New York Department of State, Division of Licensing Services North Carolina Board of Cosmetic Art Examiners North Dakota State Board of Cosmetology Ohio State Cosmetology and Barber Board Oklahoma State Board of Cosmetology and Barbering Oregon Board of Cosmetology Pennsylvania State Board of Cosmetology Rhode Island Department of Health South Carolina Board of Cosmetology South Dakota Cosmetology Commission Tennessee Cosmetology and Barber Examiners Texas Department of Licensing & Regulation Utah Division of Occupational and Professional Licensing Vermont Office of Professional Regulation Virginia Board for Barbers and Cosmetology Washington State Department of Licensing West Virginia State Board of Barbers and Cosmetologists Wisconsin Department of Safety and Professional Services Wyoming Board of Cosmetology Cosmetology Licenses After getting a cosmetology license, you will be well on your way to starting a beauty salon. Remember the cosmetology license is a professional license that each state requires to provide beauty services and is in addition to the licenses needed to open a salon. Do you need a cosmetology license to own a beauty salon? While it’s common to start a salon by getting a cosmetology license and either begin working for an established salon or opening a new salon, there may be another option. In most states it’s not required to have a license to own a beauty salon. The owner would not be able to provide any services, so they would instead have to hire stylists. Most states and towns/cities don’t have a specific beauty salon license, however they all have requirements for starting a business. A few of the common licenses and permits a beauty salon may need include: Employer Identification Number Any business with employees and those that form as a partnership, corporation and in many cases an LLC, the business will need to get an Employer Identification Number or EIN from the Internal Revenue Service (IRS). Learn how to get an EIN Sales Tax Permit or Number In order to sell products and/or offer services in a state, a sales tax permit is typically needed. This permit creates an account number with the state’s Department of Revenue or similarly named taxing agency. Learn more about sales tax permits. Resale Certificate When buying products such as shampoo, conditioner or styling products to sell to customers, the business can purchase these items tax-free. A resale certificate allows a business to purchase inventory and instead of paying the sales tax to the vendor, they charge the sales tax to the end-user of the product. Sales tax will still need to be paid for supplies used in the shop. Learn more about resale certificates Certificate of Occupancy (CO) In most communities, a retail business will need to secure a Certificate of Occupancy before opening. This certificate is obtained from the city and allows a business to occupy and operate from a building provided the building is in compliance with zoning, codes and any other local requirements. You can find original article from here: https://startingyourbusiness.com/what-licenses-are-needed-to-open-a-hair-or-nail-salon/

Finding financing and joining trade organizations are two of 10 steps to get your hair salon off the ground. 1. Pick a business model Different salon types have vastly different business models. Will you open a salon from scratch, buy an established salon or purchase a franchise? Celebrity stylist Janine Jarman was 24 and fresh out of beauty school when she purchased a failing salon in Los Angeles in 2006. The owner had fallen on hard times, but the salon had a solid location with proper equipment. Jarman scored such a great deal, she didn’t need outside financing. She rebranded it with a memorable name, Hairroin, and her shop became a major success. Will you operate on commission or chair-rental model? With chair rentals, stylists are independent contractors who carry their own insurance. Jarman says that’s ideal if you’re teaming up with a few friends to run a small operation. But if you want to grow your salon, Jarman advises, do commission. The downside: You pay employee-related expenses such as workers’ compensation insurance. Some salons operate as hybrids, though Jarman warns against starting with one model and later switching, since stylists are likely to leave. 2. Explore partnerships Seek strong business partners, whether it’s an investor or simply a strong mentor group, Fantetti says. “The most successful salons are those that have somebody who focuses on the day-to-day business,” she says, “and then another person who focuses more on the creative end of it.” Consider partnering with a product company or line. Jarman works with Sebastian, which has sent her to various business academies for salon professionals. But, she adds, “make sure they support you in your business and continue to be an ally to push you to the next level.” 3. Create a business plan A shocking number of potential salon owners launch without a business plan, says Kevin Ruane, president and CEO of Castleton Capital. His company owns Quest Resources, which specializes in equipment financing for salons. “Your success will be predicated on the fact that you come with a plan,” he says. Outline not just business needs, but also your brand identity and marketing strategy. A business plan estimates costs so you know your financing needs. “You can always pay debt down, but you can’t have $20,000 magically appear if you didn’t forecast and plan properly,” Ruane says. He recommends creating a plan under the guidance of an accountant and attorney. 4. Obtain financing Minus significant cash, you’ll need outside financing. Since business is seasonal and it takes time to get established, Fantetti recommends at least six months of capital in the bank in the beginning. It’s virtually impossible for startups to qualify for business loans, however, so entrepreneurs usually rely on family, friends and personal loans. Here is our list of startup business loan options. Once you’ve been in business at least a year, you can try banks and credit unions, but standards are strict, and application and funding can take weeks or months. If you’re not succeeding with traditional lenders, consider online alternatives, where requirements are looser and funding is quicker. Remember you can smart small, Ruane says: Just because your space has room for eight workstations doesn’t mean you have to put them all in now. “You can always come back as you’ve paid down debt and borrow more,” he says. 5. Select space carefully Ruane says location and space greatly determine costs. The average salon in America has six operators and is 1,200 square feet, Fantetti says, but this can vary. Carefully read leases for potential spaces to understand what is and isn’t included by the landlord. For example, Ruane says, will they provide tenant improvements or offer an allowance if you sign a five- or 10-year lease? Is it a raw space requiring electric wiring and HVAC installation? That adds considerable expense. Before signing, have a general contractor review the lease and space to estimate needs and costs. 6. Consider equipment financing Many new salon owners struggle to find financing to cover equipment, Ruane says. A bank may offer $50,000 for building out space but not the $30,000 needed for equipment. If so, you can turn to an equipment financing company such as Quest Resources. Make all your payments, and you own the equipment when the lease ends. You’ll need outdoor signage, phones, sound systems, desks, workstations, chairs, wash stations, cabinetry, mirrors, display cases, washers and dryers, and furniture for the office and backroom. Ruane says equipment costs vary significantly, so comparison shop. Your equipment financing company creates a financing plan based on your budget and can work in cooperation with your other lender. 7. Tackle legal requirements Numerous permits are required before opening a salon. Fantetti says this includes a business operation license, a certificate of occupancy, a license to sell retail, a building permit, a fire department permit and a state cosmetology license. She recommends visiting websites of your state and local municipality to see what’s required. Most accept applications online. Confused? Consult a local lawyer. Additionally, you must choose a business structure for your salon, such as a partnership or incorporation. Decide with an attorney, who can explain tax and legal ramifications. Here's some info on money-saving online legal services for small-business owners. 8. Hire wisely A common struggle for salon owners is finding a competent team, Fantetti says. It’s key to consider how you’ll find stylists. You could develop relationships with local beauty schools for a steady stream of candidates. When pursuing new graduates, Fantetti says, an educational plan and mentor training program are crucial. 9. Budget and create goals A budget ensures costs don’t exceed revenue. “Do the math and really know what it takes for your company to flourish,” Jarman says — even down to cost of toilet paper. Jarman, her manager and business accountant review the books monthly. Her accountant helps create an annual budget with weekly goals. With set financial goals, she says, you can find creative ways to meet them, such as promoting stylists to a higher pricing tier, offering new treatments or experimenting with opening hours. “If you stick to the numbers, it really helps you understand what to do for your business without just taking shots in the dark,” she says. 10. Join trade organizations Trade and professional organizations, such as the Professional Beauty Association, provide industry content that Jarman finds helpful. Fantetti says the organization has myriad “business blueprints” for salon owners — non-compete forms, HR manuals, marketing ideas, etc. There’s also an email listserv of salon owners and managers for peer advice. Other trade groups to explore: Association of Cosmetology Salon Professionals, Salon & Spa Professional Association, International SalonSpa Business Network, Associated Hair Professionals and Hair Artist Association. You can find a original article here: https://www.nerdwallet.com/article/small-business/10-steps-opening-hair-salon