Personal care and services · LLC guide · updated
How to start an LLC for a hair salon
Salons apply chemicals to customers' hair and skin, rent chairs to stylists and sign a commercial lease. Chemical burns, allergic reactions and slip injuries are the common claims. An LLC holds the salon license, the lease and the booth rental agreements.
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
- Salon license
- Cosmetology licenses
- Booth rental agreements
- Professional liability
Hair Salon businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 812112) and U.S. Census Bureau, Nonemployer Statistics 2022 (NAICS 812112), the latest U.S. totals.
Why hair salon owners form an LLC
Chemical reactions
Burns and reactions from color, relaxers and smoothing treatments.
Slips
Wet floors and cords near stations.
Booth renter status
Treating booth renters like employees can make them employees for tax purposes.
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 hair salon
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 chemical and service injury claims.
- General liability
Required by most landlords.
- Workers' compensation
For employees.
Taxes
- Tips
Tips are taxable; employers report employee tips on payroll.
- Product sales
Retail product sales usually carry sales tax.
If stylists rent chairs, have the LLC sign written rental agreements, have them carry their own licenses and insurance, and let them set their own prices and hours.
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 hair salon 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
Can my salon LLC hold the salon license?
Yes. The state board licenses the salon location to the business; each stylist holds their own license.
Are booth renters employees?
Usually not if they control their own clients, hours and prices. If you set those, they may be employees.
What insurance does a salon need?
Professional liability, general liability, property and workers' comp for employees.
Do I need a cosmetology license to own a salon?
In many states, no, but the salon needs licensed staff and a licensed manager.
How much does it cost to form an LLC for a hair salon?
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 hair salon?
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.
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Ready when you are
Have us file your Hair Salon 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.