How to Start a Hair Salon in Colorado (2026)

Last updated: February 25, 2026

Colorado’s beauty industry is thriving, with strong demand for salon services in Denver, Boulder, Colorado Springs, Fort Collins, and mountain resort towns. The state regulates cosmetology through DORA’s Office of Barber and Cosmetology Licensure, requiring both individual practitioner licenses and salon/shop registrations.

Colorado requires 1,800 hours of training for a full cosmetologist license (or 1,200 hours for a hairstylist license), and all salons must be registered with the state. This guide covers every license, permit, and requirement you need to legally open and operate a hair salon in Colorado.

Hair Salon Requirements in Colorado at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Colorado Secretary of State	$50	Instant (online)
Federal EIN	IRS	Free	Immediate (online)
Cosmetologist License	DORA – Barber & Cosmetology	$75 (by endorsement)	2-4 weeks
Salon/Shop Registration	DORA – Barber & Cosmetology	$75-$150	2-4 weeks
Sales Tax License	Colorado Department of Revenue	Free	Same day (online)
Local Business License	City/county clerk	Varies	Varies
General Liability Insurance	Private insurer	$500-$1,500/year	Same day
Workers’ Compensation	Private insurer	Varies by payroll	1-3 days

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

Step 1: Get Your Cosmetology License

Colorado requires individual practitioner licenses through DORA’s Office of Barber and Cosmetology Licensure:

License Types and Training Requirements

License Type	Training Hours	Credit Hours	Scope
Cosmetologist	1,800 hours	60 credits	Hair, skin, and nails
Hairstylist	1,200 hours	40 credits	Hair only
Barber	1,500 hours	50 credits	Hair cutting and shaving
Esthetician	600 hours	20 credits	Skin care
Nail Technician	600 hours	20 credits	Nails only

How to Get Licensed

Complete required training hours at a Colorado-approved cosmetology school
Apply for your license through DORA’s application portal
Pay the license fee ($75 by endorsement)
Colorado does not require a state practical exam – licensing is by endorsement based on completed education

Minimum age: 16 years old. Colorado does not offer apprenticeship programs – formal school training is required.

License renewal: Every two years by April 30 (based on original issuance year). Renewal fee: $40.

Reinstatement: $55 if your license has lapsed.

Step 2: Form Your Business Entity

Step 3: Find and Prepare Your Location

Your salon space must meet DORA’s sanitation and safety requirements:

Hot and cold running water at each shampoo station
Adequate ventilation especially for chemical services (color, perms)
Sanitation stations with EPA-registered disinfectant for tools
Separate storage for clean and used tools/linens
Proper lighting at work stations
Closed containers for used towels and hair clippings
Handwashing sink accessible to all practitioners

Zoning: Verify your location is zoned for commercial use. Some residential zones may allow home-based salons with a conditional use permit.

Step 4: Register Your Salon with DORA

All salons and shops where cosmetology services are performed must be registered with DORA:

Apply through the DORA application portal
Registration fee: approximately $75-$150
Salon registrations expire on November 30 of odd-numbered years
Your salon may be subject to inspection by DORA to verify compliance with sanitation rules

Important: Every practitioner working in your salon must hold their own individual DORA license. You cannot allow unlicensed individuals to perform cosmetology services.

Step 5: Get Business Insurance

General liability insurance: Covers slip-and-fall injuries, property damage. Typical cost: $500-$1,500/year.
Professional liability (malpractice): Covers claims from services (allergic reactions, chemical burns, hair damage). Often bundled with general liability.
Workers’ compensation: Required if you hire any employees in Colorado. Required even for one part-time employee.
Commercial property insurance: Protects salon equipment, furniture, and inventory.

Step 6: Register for Taxes and Local Permits

Salon services in Colorado have specific tax rules:

Salon services (haircuts, styling, coloring): Generally not subject to sales tax in Colorado as they are considered personal services
Product sales (shampoo, conditioner, styling products): Taxable – you must collect and remit sales tax on retail product sales
Sales tax license: Obtain through Colorado Business Express (free)
Local business license: Check with your city clerk’s office

Cost to Start a Hair Salon in Colorado

Item	Cost	Notes
Cosmetology School	$10,000-$25,000	1,800 hours (or 1,200 for hairstylist)
DORA License (individual)	$75	By endorsement
LLC Formation	$50	Colorado Secretary of State
EIN	Free	IRS online application
Salon Registration (DORA)	$75-$150	Expires November 30 of odd years
Salon Build-Out	$10,000-$50,000+	Stations, chairs, sinks, mirrors, decor
Initial Product Inventory	$2,000-$5,000	Color, developer, shampoo, retail products
General Liability Insurance	$500-$1,500/year	Includes professional liability
Workers’ Comp (if hiring)	Varies	Based on payroll
Local Business License	$25-$200	Varies by city
Periodic Report (annual)	$25/year	Required to keep LLC active

Estimated total startup cost: $23,000-$82,000+ (including cosmetology school and salon build-out)

Related Colorado Business Guides

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Frequently Asked Questions

How many hours of training do I need to open a salon in Colorado?

A full cosmetologist license requires 1,800 hours (60 credit hours) of training at an accredited school. If you only want to do hair (no skin or nails), a hairstylist license requires 1,200 hours (40 credit hours). Colorado does not offer apprenticeship programs.

Do I need to register my salon with the state?

Yes. All shops and salons where cosmetology services are performed must be registered with DORA’s Office of Barber and Cosmetology Licensure. Registration costs approximately $75-$150 and expires on November 30 of odd-numbered years. Your salon must meet sanitation and safety requirements.

Does Colorado require a practical exam for cosmetology?

No. Colorado licenses cosmetologists by endorsement based on completed education. You do not need to pass a state practical or written exam. You must complete the required training hours at an approved school and submit your application through DORA.

Are salon services taxable in Colorado?

Salon services (haircuts, coloring, styling) are generally not subject to state sales tax in Colorado as they are considered personal services. However, retail product sales (shampoo, conditioner, styling products) are taxable. You need a sales tax license to collect tax on product sales.

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

Total startup costs typically range from $23,000 to $82,000+, with cosmetology school ($10,000-$25,000) and salon build-out ($10,000-$50,000+) being the largest expenses. Licensing, insurance, and business formation add approximately $700-$2,000 in the first year.

How often do I need to renew my cosmetology license in Colorado?

Colorado cosmetology licenses must be renewed every two years by April 30, based on your original issuance year. The renewal fee is $40. If your license lapses, reinstatement costs $55. Colorado does not require continuing education hours for license renewal.

More Colorado Business Guides

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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