How to Start a Hair Salon in Illinois (2026)

Last updated: February 25, 2026

Starting a hair salon in Illinois requires navigating the state’s cosmetology licensing system through the Illinois Department of Financial and Professional Regulation (IDFPR). Both individual cosmetologists and the salon establishment itself must be separately licensed, and Illinois enforces strict sanitation standards with regular inspections.

This guide covers every license, permit, and requirement to legally open and operate a hair salon in Illinois, from cosmetology school through salon registration and ongoing compliance.

Hair Salon Requirements in Illinois at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	IL Secretary of State	$150	Several weeks (mail) or 4-5 days (online + $100)
Federal EIN	IRS	Free	Immediate (online)
Individual Cosmetologist License	IDFPR	$30 (application) + ~$98 (exam)	2-4 weeks after exam
Salon/Shop Registration	IDFPR	$40	2-4 weeks
Local Business License	City/village clerk	Varies ($50-$500+)	1-2 weeks
Sales Tax Registration	MyTax Illinois	Free	1-2 weeks
General Liability Insurance	Commercial insurer	$500-$1,500/year	Same day
Workers’ Comp (any employees)	Commercial insurer	Varies by payroll	Same day

How to Start a Hair Salon in Illinois (Step by Step)

Step 1: Get Your Illinois Cosmetology License

Before you can open a salon, you (or your managing cosmetologist) must hold a valid Illinois cosmetology license from IDFPR.

Education Requirements

• 1,500 clock hours (or 50 credit hours) at an Illinois-licensed cosmetology school
• Up to 1,000 hours of barbering training can count toward the 1,500-hour requirement

Exam

• Written exam administered by Continental Testing Services (CTS) at PSI Testing Centers
• Exam fee: ~$98 (paid to CTS)

License Application

• Application fee: $30
• Endorsement (from another state): $45
• Apply through: IDFPR CORE Online System

Renewal and Continuing Education

• Renewal: $25/year (renews biennially by September 30 of each odd-numbered year)
• Continuing education: 14 hours per renewal period (maximum 7 hours can be online)
• Restoration (lapsed license): $50 + lapsed renewal fees (max $200)

Step 2: Form Your Illinois LLC

File Articles of Organization with the Illinois Secretary of State ($150 by mail, $250 online expedited). Then get your free EIN from the IRS.

Step 3: Register Your Salon with IDFPR

The salon establishment itself must be separately registered with IDFPR, in addition to each individual cosmetologist’s license.

Item	Fee
Salon/Shop Registration	$40
Renewal	$20/year
Change of Name or Address	$20
Restoration (lapsed)	$40

Key requirement: A licensed cosmetologist must manage the establishment full-time.

Step 4: Meet Sanitation Standards

IDFPR enforces strict sanitation requirements under 68 Ill. Admin. Code 1175.115. Your salon must maintain:

• Hot and cold running water from an approved source
• Thorough hand washing with soap before and after each client
• Tool sanitization between clients using approved methods
• Weekly cleaning and disinfecting records (last 90 days must be accessible at all times)
• Self-inspection forms (available from IDFPR)
• No person with a serious communicable disease may work on premises

IDFPR conducts inspections and investigates complaints. Repeated violations can result in license discipline, suspension, or revocation.

Step 5: Get Business Licenses, Insurance, and Tax Registration

Local Business License

Get a business license from your city or village clerk. Cost varies by municipality.

Sales Tax

Hair salon services are subject to Illinois sales tax when they involve selling tangible products (styling products, hair care items). Register through MyTax Illinois. Product retail sales are taxable at the full rate (6.25% + local).

Insurance

• General Liability: $500-$1,500/year – covers slip-and-fall, allergic reactions, property damage
• Professional Liability (malpractice): $200-$500/year – covers claims from unsatisfactory services
• Workers’ Comp: Required if you have any employees (no minimum threshold in Illinois)

Cost to Start a Hair Salon in Illinois

Solo Stylist / Booth Rental

Item	Cost	Notes
Cosmetology School	$10,000-$20,000	If not already licensed
Exam + License Application	~$128	$98 exam + $30 application
LLC Formation	$150	One-time
Booth Rental	$200-$600/month	Alternative to opening your own shop
General Liability Insurance	$500-$800/year	Recommended
Tools & Supplies	$500-$2,000	Shears, dryers, styling products
Estimated first-year total: $11,478-$23,678 (including school)

Full Salon (Leased Space, 2-5 Chairs)

Item	Cost	Notes
LLC Formation + EIN	$150	One-time
Salon Registration (IDFPR)	$40	Annual renewal $20
Local Business License	$50-$500	Varies by municipality
Lease (first/last + deposit)	$3,000-$10,000	Varies by location
Salon Build-Out	$10,000-$50,000	Plumbing, stations, mirrors, flooring
Equipment (chairs, dryers, sinks)	$5,000-$20,000	2-5 stations
General Liability Insurance	$500-$1,500/year	Required by most landlords
Professional Liability	$200-$500/year	Recommended
Workers’ Comp (if employees)	$500-$2,000/year	Required for any employees
Initial Product Inventory	$2,000-$5,000	Styling products, color, supplies
Marketing / Website / Signage	$500-$3,000	Grand opening promotion
Estimated total: $21,940-$92,650

Related Illinois Business Guides

• Starting a Business in Illinois: Complete Guide

← Back to all Illinois business guides

Frequently Asked Questions

How do I get a cosmetology license in Illinois?

Complete 1,500 clock hours at a licensed cosmetology school, pass the written exam through Continental Testing Services (~$98), and apply to IDFPR ($30). If you’re licensed in another state, you can apply for endorsement ($45) without retaking the exam.

Do I need to register my salon separately from my personal license?

Yes. Your individual cosmetology license and your salon/shop registration are separate. The salon registration costs $40 (renewal $20/year) and requires a licensed cosmetologist to manage the establishment full-time.

What sanitation requirements does Illinois have for salons?

Illinois requires hot and cold running water, hand washing before and after each client, proper tool sanitization, weekly cleaning/disinfecting records (90 days on-site), and self-inspection forms. IDFPR conducts inspections and repeated violations can lead to license suspension.

How much does it cost to open a hair salon in Illinois?

A solo booth rental setup costs roughly $1,478-$3,678 (excluding cosmetology school). Opening a full salon with 2-5 chairs typically costs $21,940-$92,650 including lease, build-out, equipment, insurance, and initial inventory.

What continuing education is required for Illinois cosmetologists?

Illinois cosmetologists must complete 14 hours of continuing education per renewal period (biennially). A maximum of 7 hours can be completed online. The license renewal fee is $25/year, with renewal due by September 30 of each odd-numbered year.

Do I need workers’ comp for salon employees in Illinois?

Yes. Illinois requires workers’ comp for any employer with even one employee – there is no minimum threshold. This includes salon employees, assistants, and shampoo techs. Booth renters who are true independent contractors are generally not covered.