How to Start a Hair Salon in Arkansas (2026)

Last updated: February 25, 2026

Opening a hair salon in Arkansas requires individual cosmetology licenses for all practitioners and a separate establishment license for the salon itself. Unlike most states, Arkansas places cosmetology licensing under the Arkansas Department of Health (ADH), Cosmetology Section rather than an independent cosmetology board. Each cosmetologist must complete 1,500 hours of training at an approved school, pass written and practical exams with a score of 75% or higher, and be at least 16 years old. The salon owner must hold a current Cosmetology Establishment License. Licenses renew on a biennial (every two years) basis. As of January 1, 2026, renewal fees are being restored to their original amounts after a prior reduction period.

Hair Salon Requirements in Arkansas at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Secretary of State (BCS)	$45 (online)	3-5 business days
Cosmetologist License (individual)	AR Dept of Health – Cosmetology	Contact ADH for fee	After 1,500 hours + exam
Cosmetology Establishment License (salon)	AR Dept of Health – Cosmetology	Contact ADH for fee	Before opening
Cosmetology School Training	State-approved school	~$5,000-$15,000	1,500 hours (approx. 12-18 months)
Written and Practical Exams	State Board examiner	Contact ADH for exam fee	After completing 1,500 hours
Sales Tax Permit	AR Dept of Finance & Administration	$50 non-refundable	3-5 business days
General Liability Insurance	Private Carrier	~$1,500-$3,000/year	Before opening
Workers’ Compensation	Private Carrier	Varies by payroll	Required at 3+ employees
Annual Franchise Tax	Secretary of State	$150/year	Due May 1st annually
License Renewal (biennial)	AR Dept of Health – Cosmetology	Contact ADH for fee	Every 2 years

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

Step 1: Complete Cosmetology Education (1,500 Hours)

To obtain an Arkansas cosmetologist license, you must complete 1,500 hours of training at a school approved by the Arkansas Department of Health Cosmetology Section:

• Schools must be approved by ADH to count toward licensure
• The curriculum covers hair cutting, coloring, styling, chemical services, skin care, and sanitation
• Cost: $5,000-$15,000 depending on school (tuition plus kit/supplies)
• Duration: Typically 12-18 months full-time or longer part-time
• Must be at least 16 years old to begin cosmetology school for licensure purposes

Step 2: Pass State Exams

After completing your 1,500 hours, apply to the Arkansas Department of Health Cosmetology Section to sit for your exams:

• Written exam: Tests knowledge of cosmetology theory, sanitation, chemistry, and Arkansas law
• Practical exam: Demonstrates hands-on skills
• Passing score: 75% or higher on both exams
• Contact the ADH Cosmetology Section for current exam scheduling and fees: (501) 682-2168
• Email: Cosmo@arkansas.gov
• Address: 101 E. Capitol, Suite 108, Little Rock, Arkansas 72201
• Website: adhcosmo.arkansas.gov

Step 3: Obtain Your Individual Cosmetologist License

After passing both exams, submit your license application to the ADH Cosmetology Section with your exam results and required fees. Your cosmetologist license must be current and displayed at your workstation. Licenses renew biennially (every 2 years).

Note on 2026 fees: Beginning January 1, 2026, cosmetology licensure renewal fees are being restored to their original amounts after a prior reduction period. Contact ADH directly for current fee schedules.

Step 4: Form Your Business and Get the Establishment License

To operate a salon, you need both the business entity and a separate establishment license:

1. Register an LLC with the Arkansas Secretary of State for $45 online
2. Apply for a Cosmetology Establishment License from the ADH Cosmetology Section
   • The proprietor is responsible for compliance with all state laws and rules
   • Facility must meet all sanitation, ventilation, and equipment standards
3. Obtain a local business license from your city or county clerk
4. Ensure your facility passes a health inspection if required by your local jurisdiction

Step 5: Register for Sales Tax

Hair salon services (haircuts, coloring, styling) are taxable in Arkansas. Register through ATAP:

• Registration fee: $50 non-refundable
• State rate: 6.5% plus local add-ons
• Retail sales of products (shampoo, styling products) are also taxable
• File and remit monthly through ATAP

Step 6: Get Insurance

• General Liability Insurance: $1 million per occurrence minimum. Covers client injuries, property damage.
• Professional Liability (Malpractice): Covers claims from services – chemical burns, allergic reactions, etc. Important for cosmetologists.
• Workers’ Compensation: Required at 3 or more employees in Arkansas.

Startup Cost Breakdown

Item	Cost
Cosmetology school (1,500 hours)	$5,000-$15,000
Individual cosmetologist license (contact ADH)	Contact ADH
LLC formation	$45
Cosmetology establishment license (contact ADH)	Contact ADH
Sales tax registration	$50
Salon equipment and furnishings	$5,000-$30,000
General liability and professional liability insurance (annual)	$1,500-$3,000
Local business license	$50-$200
Total startup (excluding school, varies by salon size)	$6,700-$33,300+

Frequently Asked Questions

Who issues cosmetology licenses in Arkansas?

Cosmetology licenses in Arkansas are issued by the Arkansas Department of Health (ADH), Cosmetology Section – unlike most states that use an independent cosmetology board. Contact ADH at (501) 682-2168 or Cosmo@arkansas.gov, or visit adhcosmo.arkansas.gov.

How many hours of training are required for an Arkansas cosmetology license?

Arkansas requires 1,500 hours of training at a state-approved cosmetology school. After completing your hours, you must pass both a written exam and a practical exam with a minimum score of 75% on each to receive your license. You must be at least 16 years old.

Do I need a separate license to open a salon vs. being a cosmetologist?

Yes. Your individual cosmetologist license allows you to practice the profession. To operate a salon as a business, you must also obtain a Cosmetology Establishment License from the ADH Cosmetology Section. Both the individual and establishment licenses must be current and displayed.

How often do Arkansas cosmetology licenses renew?

Arkansas cosmetology licenses renew biennially (every 2 years). As of January 1, 2026, renewal fees have been restored to their original amounts. Contact ADH for current renewal fee amounts and continuing education requirements.

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