Personal care and services · LLC guide · updated
How to start an LLC for a barbershop
Barbershops use razors and clippers on customers and often rent chairs to other barbers. Cuts, infections and slip injuries are the claims. An LLC holds the shop license, the lease and the chair rental agreements, separate from each barber's own license.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- Shop license
- Barber licenses
- Booth rental agreements
- General liability
Barbershop businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 812111) and U.S. Census Bureau, Nonemployer Statistics 2022 (NAICS 812111), the latest U.S. totals.
Why barbershop owners form an LLC
Cuts and infections
Razor nicks and skin infections from tools that were not properly sanitized.
Chair renter status
How you treat chair renters decides whether they are employees.
Lease
The lease is the largest commitment.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a barbershop
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- Professional liability
Covers service injuries.
- General liability
Required by landlords.
Taxes
- Cash tips and payments
Record all cash income; it is taxable.
- Chair rent income
Rent from chair renters is income to the shop.
The LLC holds the shop license and lease; each barber holds their own license and, if renting a chair, their own insurance and books.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a barbershop LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need a barber license to own a barbershop?
It depends on the state; many allow non-barber owners as long as the shop is licensed and staffed by licensed barbers.
Is a barbershop license different from a salon license?
Often yes. Many states have separate barber and cosmetology boards.
Should chair renters form their own LLCs?
Many do, to keep their own business money and liability separate.
What insurance does a barbershop need?
Professional and general liability, property, and workers' comp for employees.
How much does it cost to form an LLC for a barbershop?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my barbershop?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
Related industries
Ready when you are
Have us file your Barbershop LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.