How to Start a Salon Business
For stylists opening a salon of their own: staffing the chairs, licensing questions for your state board, the paperwork and the first invoices you send.
Opening a salon turns one stylist's work into a business with chairs to fill, a lease, permits and people to pay or bill. Before you sign anything, decide whether the stylists will be your employees or rent booths from you, because that shapes your paperwork and your invoices. Billing services and retail products has its own salon guide, linked below.
The BLS page on barbers, hairstylists, and cosmetologists (In the US, last modified August 27, 2026) says "Those who operate their own barbershop or salon have managerial duties that may include hiring, supervising, and firing workers." It also notes: "Some lease booth space from a salon owner." For licenses, ask your state's cosmetology board what applies to you, to each stylist and to the salon itself.
A sample month for one booth renter: booth rent at 1 × $650.00 and a shared supplies fee at 1 × $45.00 make $650.00 + $45.00 = $695.00 on the renter's invoice. Use your own figures; these are only an illustration.
Step-by-step startup guide
Follow these steps to launch your salon business on solid footing.
- 1
Pick a staffing model
Choose employed stylists, booth renters or both, and work out what every chair costs you and earns.
- 2
Contact your state cosmetology board
Ask the board which licenses you, your stylists and the salon premises each need before you open the doors.
- 3
Check local permits
The SBA (In the US, SBA, checked October 31, 2026) says "The licenses and permits you need from the state, county, or city will depend on your business activities and business location." Ask your city about signage, zoning and occupancy rules for the space.
- 4
Register and get an EIN
The SBA (In the US, SBA, checked October 31, 2026) says "You need it to pay federal taxes, hire employees, open a bank account, and apply for business licenses and permits." The IRS (In the US, IRS, last reviewed or updated October 16, 2026) says "You never have to pay a fee for an EIN."
- 5
Set up payroll paperwork if you hire
For employed stylists, the IRS hiring page (In the US, IRS, last reviewed or updated February 18, 2026) says "Ask all new employees to give you a signed Form W-4 when they start work."
- 6
Bill renters and clients
Send booth renters a monthly invoice with a fixed due date, and keep client services and retail sales on their own records.
Tips for starting your salon business
- Put booth rental terms in a written contract that covers rent, supplies and notice periods.
- Insure the premises and the work. The SBA (In the US, SBA, checked October 31, 2026) says "Speak to insurance agents to find out what kinds of coverage makes sense for your business."
- Keep each stylist's license details on file and note the renewal dates.
- Track income and costs from day one. The IRS (In the US, IRS, last reviewed or updated May 1, 2026) says "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses."
How Billed helps you get started
Features to look at as you set up your business.
Recurring Invoices
Billed's features page says: "Save time by sending invoices on a regular schedule so you don’t have to create invoices again and again."
Save Products & Services
Billed's features page says: "Save products and services in Billed App and pull these products quickly in your invoices."
Client Profiles
Billed's features page says: "Create and save client profiles to bill them quickly."
Partially Paid Invoices
Billed's features page says: "See partially paid invoices and send payment reminders to your customers."
Frequently asked questions
More Startup Guides
Invoice Your First Booth Renter
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Decision | Who to ask | Source |
|---|---|---|
| Licenses for you, stylists and the salon | State cosmetology board | Pointer |
| Local permits | State, county and city offices | SBA (In the US, SBA, checked October 31, 2026) |
| Employed stylists | Forms W-4 and I-9 | IRS (In the US, IRS, last reviewed or updated February 18, 2026) |
| Booth renters | Monthly invoice | Salon invoicing guide |
When this isn't for you
If you rent a booth in someone else's salon, the steps for running your own chair are in the barber and stylist guides; this one is for the salon owner.