Start a salon

Open your salon.Leave the paperwork to our office.

Our office forms your salon, barbershop or spa company in any state, gets the EIN, runs payroll and keeps your books, and our agency insures the shop, your equipment and the services you provide.

Reviewed by Orkun Ozkaymak, CPA, MBAClients in all 50 states and abroad

$500company setup, EIN included
50 + DCstates we form companies in
1 officeformation, taxes and insurance
2011preparing taxes since
Step by step

How to open a salon

  1. 1

    Form the company and get an EIN

    Our office forms your LLC or corporation in the state where you open and gets the EIN before you sign the lease, so the shop license and bank account are in the company name.

  2. 2

    License the salon with your state

    Most states require a salon or shop license from the state cosmetology or barber board, often with an inspection. Each stylist, barber and technician also needs an individual license.

  3. 3

    Register for sales tax on products

    If you sell shampoo, styling products or skin care, register with your state's revenue department and collect sales tax on retail sales.

  4. 4

    File local licenses

    Check for a city or county business license and any local health permit at your address, especially for spa services.

  5. 5

    Set up payroll or booth rent

    Decide whether stylists are employees or booth renters. Our office runs payroll for employees, and our agency quotes liability, professional coverage and workers' compensation.

Filings and prices

What our office files for you.Prices shown before you send.

Pick what you need on the request form. Ozfield's fees are shown here; government fees are passed through at cost.

  • IDFPR salon license help Illinois
    Quoted by our office
  • Illinois sales tax registration and resale certificate IllinoisRegisters the company with the Illinois Department of Revenue.
    $250
  • City of Chicago business license IllinoisThe city fee is $500 or $1,000 for 2 years depending on the license type, paid to the city.
    $179
  • Payroll and state unemployment setupPayroll accounts, state unemployment registration and your first payroll.
    Quoted by our office
Company setup is $500 plus the state fee, EIN included.
The request form adds your filings and shows the full estimate as you go.
Build my estimate
After you open

The filings that come every year.

Our office keeps these on your calendar so nothing is missed. How we work with salons and spas →

Illinois sales tax

20th of each month. Form ST-1 for product sales.

Form 941 and state payroll

Quarterly. Including reported tips.

W-2 and 1099-NEC

January 31. Wage statements and contractor forms.

Estimated payments

Apr 15 · Jun 15 · Sep 15 · Jan 15. For booth renters and owners.

Questions

What new owners ask us.

Something else on your mind? Call 773-536-9272 and our office will help, in English or Turkish.

Do I need a salon license?
In most states, yes. The state cosmetology or barber board licenses salons, barbershops, nail salons and spas, separately from the individual licenses each stylist, barber or technician holds. Many states inspect the shop before or after opening. Some cities add a business license or health permit. Our office forms your company and gets the EIN the application asks for.
Can I open a salon if I am not a licensed cosmetologist?
In most states, yes. An owner usually does not need a cosmetology or barber license to own a salon, but every person providing services must be licensed, and the salon itself must be licensed or registered. Some states require a licensed manager on site. Our office forms the company with you as owner.
Should my stylists be employees or booth renters?
Booth renters run their own business, set their hours, buy their own supplies and pay you rent. If you set schedules, set prices and supply products, stylists are likely employees. The difference affects payroll taxes, unemployment insurance and workers' compensation. Our office reviews your setup and runs payroll for employees.
What insurance does a salon or spa need?
Most salons carry general liability, professional liability for services like color, chemical treatments and waxing, property coverage for chairs and equipment, and workers' compensation once you hire. Booth renters often carry their own policies. Our agency quotes these together and issues the certificate your landlord asks for.

Ready to start your salon?

Answer a few questions, see your estimate and send it to our office.