Do I Need a Business License to Own a Salon?

New hair or nail salon businesses must get specific licenses and permits to operate in the given state where the salon is located. The specific business requirements differ for each state and the individual needs of the salon, such as building a new salon and hiring employees. Aspiring hair or nail salon owners must fulfill the state and local requirements before opening the doors to the salon.

General Business License

New salon owners must obtain a general business license for their salon if the business structure requires it in the given state in which the salon is located. For example, sole-proprietor or partnership salon businesses must register for a business license with the clerk court's office in Louisiana, while corporations, nonprofits and limited liability salon businesses must register for a license with the Louisiana secretary of state. However, all business structures in Minnesota must register with the Minnesota secretary of state. Florida businesses must register with the division of corporations, despite operating structure. Check with the U.S. Small Business Administration for each state's specific business license requirements.

Cosmetology License

Any worker performing any beauty services, such as coloring, curling and cutting on customers' hair and performing manicures, pedicures and massages using lotions, creams and tonics must have a cosmetology license issued by the state's board of cosmetology. If the owner is running a sole-proprietorship with the owner as the only worker, the owner must have such a license. Any additional workers offering these services must have an approved cosmetology license.

Salon-Based Permits

The salon itself may be subject to various business permits, including zoning and land use permits if the salon is being built on land or owned property. This permit is issued by the city or county where the property is located. The health department of the given state will issue a health department license after an inspection of the premises has been completed. Lastly, a new salon owner must obtain a sales tax license used to pay statewide taxes from the given state's department of revenue.

Employer Identification Number

Business owners of any kind can choose to use their Social Security number as an identification number for the business. If a salon business owner does not want to use the Social Security number as her business identification number, she must use an employer identification number from the IRS as her primary identification number. The number is significant for tax filings, business banking loans and other legal documents relating to the salon and state. The number is free and issued by filing the IRS SS-4 form.

Salon Employees

Salon business owners must inform the Department of Homeland Security if they decide to hire employees to work in the salon. According to the Department of Homeland Security, all new employees must be verified to ensure they are legally entitled to work in the United States. Salon owners must fill out and submit an I-9 form for every potential employee for the salon to the Department of Homeland Security.

References

• Starting a Hair Salon Business Guide: Licenses and Permits Your Hair Salon Need
• U.S. Small Business Administration: Register Your Fictitious or "Doing Business As" (DBA) Name
• IRS: Employer ID Numbers (EINs)
• Department of Homeland Security: Form I-9, Employment Eligibility Verification
• Tennessee Government Dept. of Commerce and Insurance: Board of Cosmetology: Individual Licensure Requirements