Regulations and Rules for Opening a Salon

The salon and spa industry is vastly growing representing more than 900,000 businesses in America.  According to the U.S. Bureau of Labor Statics, the salon industry is expected to grow an estimated 31% between 2008 and 2018.  While the salon industry attracts many entrepreneurs  regulations and rules vary from state to state and can be confusing for those looking to open up shop.  The information below is designed to help you get started.

Choosing a Salon Type

Before establishing a salon, you must first decide on the type of salon you would like to run.  This determines the type and number of license needed to legally open a salon.  Here are some examples:

   1. Salon specializing in weaving and braiding or hair design

   2. Skin care salon specializing in facials and body massage

   3.  Sale of cosmetics; which requires a special license

Obtaining a License

Prior to opening a salon you, the entrepreneur, must first apply for a salon license from the state board of cosmetology.  This should be done before the grand opening of the business.  Since each state varies in how many days prior to opening you should obtain the license it is wise to check with the state cosmetology board first. You will need to provide details of the business such as the opening date, location and name of establishment as well as the nature of the business. Fees for obtaining a license also vary per state. If all of the licensing requirements are satisfied, the board issues a temporary permit for the beginning period of the salon, pending inspection.

License Requirements

Most state board of cosmetology require that the prospective salon owner be at least 16 years of age.  You should have the proper training and certification obtained by a school accredited by the board. In addition, you will have to pass an exam which will determine if you get the license.

Certifications and Inspections

The state board will conduct an inspection on the salon to determine whether it has certified all the licensing requirements. The salon and its location need meet sanitary standards to pass inspection. The inspector will be looking to establish whether you have displayed information concerning the business, including the license and certification, information on consumer complaints and procedures, commission laws and the salon's operating hours.

Tax Payment

You will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service as proof that you pays taxes. In addition, a sales and user permit along with tax identification from the state comptrollers office needs to be obtained. 

More information on salon regulations and rules can be supplied by your state cosmetology board.  

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