How to Start a Hair Salon in Montana (2026)

Last updated: May 4, 2026

The single most important fact about opening a hair salon in Montana is that the Montana cosmetology training requirement is 2,000 hours — one of the highest in the country. The national range runs from roughly 1,000 hours (some states have reduced requirements) to 2,300 hours. Montana sits near the top of that range. If you’re hiring licensed cosmetologists, this is not an issue — they’ve already completed school. But if you are the person planning to hold a cosmetology license and operate the salon yourself, understand that this will take 12-18 months of full-time school enrollment before you can even apply for your license.

Montana also requires two separate licenses to operate a salon: the individual cosmetology license (for each licensed practitioner) and a Salon Establishment License that authorizes the physical location. The establishment license requires a facility inspection before it is issued — inspectors verify sanitation standards, proper equipment, and physical plant compliance. You cannot legally cut hair in your salon before both licenses are in hand. Both are issued through the Montana Board of Barbers and Cosmetologists, which is part of the DLI Business Standards Division.

Hair Salon Requirements in Montana at a Glance

Requirement	Agency / Detail	Cost	Timeline
Cosmetology School (training hours)	Montana-accredited cosmetology school	$10,000-$25,000+ (varies by school)	2,000 hours; typically 12-18 months full-time
NIC Written and Practical Exams	National Interstate Council (NIC) — scheduled through DLI	~$99 written; ~$120 practical (verify current NIC fees)	After completing school hours
Individual Cosmetology License	Montana Board of Barbers and Cosmetologists — DLI	$80 initial (non-refundable); $80 biennial renewal	Biennial renewal Jan 2-Mar 1 window
Esthetics License	Montana Board of Barbers and Cosmetologists	$80 initial; $80 biennial renewal	650 hours required
Manicurist / Nail Tech License	Montana Board of Barbers and Cosmetologists	$80 initial; $80 biennial renewal	350 hours required
Salon Establishment License	Montana Board of Barbers and Cosmetologists	$85 application + ~$150 inspection	Apply before opening; inspection required before license issued
LLC Articles of Organization	Montana Secretary of State — biz.sosmt.gov	$35 online	3-5 business days
Workers’ Compensation Insurance	Montana State Fund or private carrier (NCCI 9586)	Varies by payroll	Required at 1+ employee
Local Business License	City or county clerk	$25-$150 typical	Before opening

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

Step 1: Complete Cosmetology School (2,000 Hours)

Montana requires 2,000 hours of training at an accredited cosmetology school for a cosmetology license. This is verified by the Montana Board of Barbers and Cosmetologists, which is administered through the DLI Business Standards Division at boards.bsd.dli.mt.gov.

Montana has accredited cosmetology schools in its major population centers, including Billings, Missoula, Great Falls, Bozeman, and Helena. Full-time programs typically run 12-18 months; part-time programs take longer. Tuition varies significantly by school — expect $10,000 to $25,000+ for the full program. Financial aid through federal Title IV programs (Pell grants, subsidized loans) is available at schools with proper accreditation.

Other license types and training hours

• Esthetician: 650 hours — covers skincare, facials, waxing, and related treatments. Initial and renewal fees: $80 each.
• Manicurist (Nail Technician): 350 hours — the shortest Montana cosmetology program. Initial and renewal fees: $80 each.
• Cosmetology Instructor: Additional training and separate licensure required to teach at accredited schools. Contact the Board for current instructor requirements.
• Barber: Licensed through the same Montana Board of Barbers and Cosmetologists under a separate barber license track.

Step 2: Pass NIC Examinations

After completing the required training hours, candidates must pass the National Interstate Council of State Boards of Cosmetology (NIC) written and practical examinations. Montana uses the NIC exam system for cosmetology, esthetics, and nail technology. The written exam tests theory knowledge; the practical exam tests technical skills on a mannequin head or live model under observed conditions.

Exam fees are set by NIC and the testing provider — approximately $99 for the written exam and $120 for the practical exam as of recent fee schedules, though you should verify current fees directly with NIC or the DLI Board when scheduling. Exams are administered at approved testing locations; scheduling is coordinated through the Board or NIC directly.

Step 3: Apply for Your Individual License

Submit your application to the Montana Board of Barbers and Cosmetologists with proof of school hours, exam scores, and the $80 non-refundable application fee. Contact the Board at (406) 444-6880 or DLIBSDHELP@MT.GOV for current application forms and submission instructions.

License renewal

Montana cosmetology licenses renew on a biennial cycle. The renewal window is January 2 through March 1 of each renewal year. Renewal fee: $80. Montana does not require continuing education for licensed cosmetologists, estheticians, or manicurists to renew. This is a notable advantage compared to states like Colorado, Maryland, and many others that require 6-10 hours of CE per renewal cycle. Only instructors (who teach at licensed schools) must complete 30 hours of CE per biennial renewal.

Step 4: Form Your Business Entity

File a Montana LLC through the Secretary of State’s portal at biz.sosmt.gov for $35 online. Processing: 3-5 business days standard. Apply for a federal EIN at IRS.gov (free) — required for opening a business bank account and hiring employees.

Get a local business license from your city or county before opening. Most Montana cities require this — Billings, Missoula, Great Falls, Bozeman, Helena, and Butte all have local business license requirements. Contact your city clerk’s office for current fees and application procedures.

Step 5: Secure Your Location and Obtain the Salon Establishment License

The Salon Establishment License authorizes your specific salon location and is a completely separate license from the individual cosmetology license. You cannot legally operate a salon — even if you personally hold a cosmetology license — without this establishment license.

• Submit a Salon Establishment License application to the Montana Board of Barbers and Cosmetologists. Fee: $85.
• An inspector visits your salon location to verify compliance with sanitation standards, physical plant requirements (proper shampoo bowls, sanitation equipment, ventilation, lighting), and safety standards. Inspection fee: approximately $150.
• The establishment license is issued after a successful inspection. Do not open to the public before the license is issued.
• Each physical location needs its own establishment license — a second location requires a second application and inspection.

Booth rental considerations

Montana salon operators who rent booth space to independent contractor cosmetologists need to understand Montana and IRS worker classification rules. Booth renters who set their own hours, use their own products, and control their own client relationships meet the independent contractor standard. Booth renters who must follow salon scheduling, use salon-provided products, and work required hours are more likely to be classified as employees. Worker misclassification audits by Montana DLI and IRS are a real risk in the salon industry — document booth rental agreements carefully and ensure the relationship is genuinely independent.

Step 6: Insurance and Workers’ Compensation

Montana requires workers’ compensation insurance for any employer with one or more employees. NCCI class code 9586 applies to hair salons and cosmetology establishments. Rates under this code are typically lower than construction trades — salon work is classified as lower physical risk. Obtain coverage from a private carrier or the Montana State Fund at montanastatefund.com.

General liability insurance at $1 million per occurrence is standard for lease-based salons and typically required by commercial landlords. Professional liability (errors and omissions) coverage protects against claims arising from a service-related incident — chemical burns, allergic reactions to color products, or scalp injuries. This is separate from GL and worth considering for a full-service salon offering chemical treatments.

Montana Hair Salon Market: Where the Demand Is

Billings is Montana’s largest salon market. The combination of oil and gas industry workers (who earn well), two major healthcare system workforces, and the broadest retail trade area in the state creates diverse and relatively stable demand. Billings supports the full range of salon business models from budget walk-in operations to upscale full-service salons and medical spa concepts.

Bozeman is Montana’s fastest-growing salon market and arguably the highest-margin opportunity in the state. The influx of tech-sector workers, remote workers from California and the Pacific Northwest, and second-home owners with above-average incomes has created demand for premium services — balayage, keratin treatments, high-end skincare, and lash services — at price points uncommon elsewhere in Montana. Montana State University’s student population adds a secondary market. Salon-suite concepts (renting individual fully-equipped booths or small studios to independent operators) have expanded in Bozeman at rates mirroring broader national trends.

Missoula has a strong university-community salon market anchored by University of Montana. The environmental and outdoor recreation culture creates demand for natural and sustainable product lines that resonate with the Missoula customer base.

Resort communities — Whitefish near Glacier National Park and Big Sky near Yellowstone — have seasonal salon demand that peaks dramatically during summer and ski season but drops in shoulder seasons. Resort-area salons serve wealthy out-of-state visitors and second-home owners who expect premium services and pay accordingly, but the extreme seasonality of national park tourism (May through September accounts for 80-90% of Glacier visitation) requires careful working capital management. Plan your lease terms, staffing model, and cash reserves around the reality that three to four months of peak revenue must sustain slow spring and fall periods.

Cost to Start a Hair Salon in Montana

Item	Estimate
Cosmetology school tuition (if applicable)	$10,000-$25,000+
NIC exam fees (written + practical)	~$220
Individual cosmetology license	$80
Salon Establishment License (application + inspection)	~$235
LLC formation	$35
Local business license	$25-$150
Workers’ comp insurance (Year 1)	$500-$2,500
General liability insurance	$500-$1,500/year
Salon build-out / equipment (lease-based)	$10,000-$50,000+
Total startup estimate (excluding school)	~$12,000-$55,000+

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Frequently Asked Questions

How many hours of school are required for a cosmetology license in Montana?

2,000 hours — one of the higher requirements nationally. After completing school, you must pass the NIC written and practical examinations before the Board will issue your license. Initial application fee is $80.

What does the Montana cosmetology license cost?

Initial individual license application: $80 (non-refundable), through the Montana Board of Barbers and Cosmetologists. Biennial renewal: $80 (January 2-March 1 window). A separate Salon Establishment License ($85 application + ~$150 inspection) is required to operate a salon location — this is not the same as the individual license.

Does Montana require continuing education for cosmetologists?

No. Montana does not require continuing education for licensed cosmetologists, estheticians, or nail technicians to renew. Only instructors teaching at licensed schools must complete 30 hours of CE per biennial cycle. This is a notable advantage over states requiring 6-10 CE hours each renewal period.

What is the salon establishment license in Montana?

A separate license issued by the Montana Board of Barbers and Cosmetologists authorizing a specific salon location. An inspector visits before the license is issued to verify sanitation and physical plant compliance. Application fee: $85. Inspection fee: ~$150. Without it, operating the salon is illegal even if all practitioners are individually licensed.

How many esthetics and nail tech hours does Montana require?

650 hours for esthetics; 350 hours for nail technician (manicurist). Both carry $80 initial and biennial renewal fees. No continuing education required for renewal.

Can I get a Montana cosmetology license by endorsement from another state?

Montana may grant reciprocal licensure to cosmetologists from states with equivalent or greater training requirements. Since Montana’s 2,000-hour requirement is higher than most states, applicants from lower-hour states may need additional training. Contact the Board at (406) 444-6880 or DLIBSDHELP@MT.GOV for current reciprocity requirements.