How to Start a Hair Salon in Alabama (2026)

Last updated: February 25, 2026

Starting a hair salon in Alabama requires a cosmetology license from the Alabama Board of Cosmetology (ABOC). You need 1,500 hours of cosmetology school (or 3,000 hours of apprenticeship), then pass both a written and practical exam. Total licensing cost is about $255 for the individual license, plus $200 for a new shop license. Salon services in Alabama are generally not subject to state sales tax (only product sales are taxable). Workers’ comp is required at 5+ employees. This guide covers every requirement using official Alabama sources.

Hair Salon Requirements in Alabama at a Glance

Requirement	Agency	Cost	Timeline
Cosmetology Education	ABOC-approved school	$8,000-$20,000	9-18 months (1,500 hours)
Written Exam	Alabama Board of Cosmetology	$75	Scheduled after graduation
Practical Exam	Alabama Board of Cosmetology	$130	Scheduled after graduation
Cosmetology License	Alabama Board of Cosmetology	$50	After passing both exams
Shop License (new)	Alabama Board of Cosmetology	$200	Before opening; includes inspection
LLC Formation	Secretary of State	$228 (online)	3-5 business days
Municipal Business License	City/County Clerk	Varies ($50-$300+)	1-5 business days
General Liability Insurance	Private Carrier	$1,500-$3,000/year	Before opening
Workers’ Comp Insurance	Private Carrier	Varies by payroll	Before hiring 5th employee
Federal EIN	IRS	Free	Immediate (online)

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

Step 1: Complete Cosmetology Education

Alabama requires 1,500 clock hours of cosmetology education at an ABOC-approved school, or 3,000 hours as an apprentice under a licensed cosmetologist.

Minimum age: 16 years old
Minimum education: 10th grade or GED equivalent
Program duration: Typically 9-18 months (full-time) for cosmetology school
Tuition: $8,000-$20,000 depending on the school
Curriculum: Hair cutting, coloring, chemical treatments, nail care, skin care, sanitation, salon management, Alabama law

Alabama also offers separate license categories: cosmetologist (full service including hair, skin, and nails), hairdresser (hair only), manicurist (nails only), and esthetician (skin only). Most salon owners get the full cosmetology license.

Step 2: Pass the Cosmetology Exams

After completing your education, schedule both exams with the Alabama Board of Cosmetology:

Exam	Fee	Details
Written Exam	$75	Multiple choice; covers theory, sanitation, Alabama cosmetology law
Practical Exam	$130	Live demonstration of skills; must bring mannequin and supplies

You must pass both exams to qualify for licensure. If you fail, you may retake the failed portion. Contact the Board for current scheduling and exam locations.

Step 3: Get Your Cosmetology License

After passing both exams, apply for your personal cosmetology license:

Original license fee: $50
Total initial licensing cost: $255 (written $75 + practical $130 + license $50)
Renewal: $100 every 2 years
Late fee: $54 if renewal is late

Out-of-State Licensees (Reciprocity/Endorsement)

If you hold a valid cosmetology license in another state, Alabama offers reciprocity. You must meet Alabama’s education hour requirement (1,500 hours) or demonstrate equivalent training. Contact ABOC for the endorsement application and fee schedule.

Step 4: Form Your Business Entity

Step 5: Get Your Shop License

Every salon location must have a separate shop license from the Alabama Board of Cosmetology:

New shop license: $200
Shop renewal: $150 every 2 years
Shop relocation: $50
Inspection: Required before the shop license is issued; Board inspectors verify sanitation, equipment, ventilation, and compliance with ABOC regulations

Salon Facility Requirements

Adequate ventilation (especially for chemical services)
Hot and cold running water at each shampoo station
Separate restroom facilities
Proper sanitation and disinfection equipment (UV sanitizer or wet sanitizer at each station)
Clean towels and linens (laundered between clients)
Proper storage for chemicals and tools
Posted licenses for all cosmetologists working in the salon
Current shop license displayed prominently

Step 6: Get Business Licenses and Insurance

Municipal business license: Required in most Alabama cities. Contact your city clerk or county license commission.

Sales tax: Salon services (haircuts, coloring, styling) are generally not subject to Alabama sales tax. However, if you sell retail products (shampoo, conditioner, styling products), those are taxable at the state rate of 4% plus local rates. Register through My Alabama Taxes.

Insurance:

General liability: $1 million per occurrence / $2 million aggregate ($1,500-$3,000/year). Covers slip-and-fall injuries, allergic reactions, and property damage.
Professional liability (malpractice): Covers claims of damage from services (chemical burns, allergic reactions). Often bundled with general liability.
Workers’ comp: Required at 5+ employees. Salon workers’ comp rates are moderate.

Cost to Start a Hair Salon in Alabama

Item	Cost	Notes
Cosmetology School	$8,000-$20,000	1,500 hours; financial aid may be available
Exams + License	$255	Written $75 + practical $130 + license $50
Shop License	$200	New shop; includes Board inspection
LLC Formation	$228	$28 name reservation + $200 formation
Municipal Business License	$50-$300	Varies by city/county
Salon Lease (first + last + deposit)	$3,000-$10,000	Varies significantly by location
Salon Buildout/Renovation	$5,000-$30,000	Plumbing, electrical, flooring, stations
Equipment (stations, chairs, dryers)	$3,000-$15,000	Per-station cost: $1,000-$3,000
Initial Product Inventory	$1,000-$3,000	Professional products + retail inventory
General Liability Insurance	$1,500-$3,000/year	Includes professional liability
Marketing	$500-$2,000	Signage, website, social media, grand opening
Federal EIN	Free	Apply online at IRS.gov

Estimated total startup cost: $25,000-$85,000 (excluding cosmetology school tuition)

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Frequently Asked Questions

How many hours of cosmetology school do I need in Alabama?

Alabama requires 1,500 clock hours at an ABOC-approved cosmetology school, or 3,000 hours through an apprenticeship program. Programs typically take 9-18 months for school, or 18-24 months for apprenticeship.

How much does it cost to get a cosmetology license in Alabama?

Licensing costs total $255: written exam ($75), practical exam ($130), and original license ($50). This does not include cosmetology school tuition ($8,000-$20,000). Renewal is $100 every 2 years.

Do I need a shop license to open a salon in Alabama?

Yes. Every salon location needs a shop license from the Alabama Board of Cosmetology. A new shop license costs $200 and requires passing a Board inspection. Renewal is $150 every 2 years.

Are salon services taxable in Alabama?

Salon services (haircuts, coloring, styling, treatments) are generally not subject to Alabama sales tax. However, retail product sales (shampoo, conditioner, styling products) are taxable at the state rate of 4% plus local rates.

How much does it cost to start a hair salon in Alabama?

Total startup costs range from $25,000-$85,000 (excluding cosmetology school). Major expenses include salon lease ($3,000-$10,000 initial), buildout ($5,000-$30,000), equipment ($3,000-$15,000), licensing ($683 total for personal + shop), and insurance ($1,500-$3,000/year).

What are the sanitation requirements for Alabama salons?

Alabama Board of Cosmetology requires: disinfection of all tools between clients, UV or wet sanitizer at each station, clean towels/linens for each client, proper ventilation, hot and cold running water, separate restrooms, and proper chemical storage. Inspections are conducted by Board inspectors, and violations can result in fines or license suspension.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

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