How to Start a Hair Salon in Maryland (2026)

Last updated: February 25, 2026

Starting a hair salon in Maryland requires two levels of licensing from the Board of Cosmetologists under the Department of Labor: an individual cosmetology license for every practitioner and a salon permit for the business location. Maryland requires 1,500 hours of cosmetology school training (or a 24-month apprenticeship), plus passing combined theory and practical exams. New for 2026, continuing education is now mandatory – 6 hours per renewal cycle including 1 hour of domestic violence awareness training. The salon permit process involves a Board inspector visit before approval, so plan for about 45 days of processing time. This guide covers every requirement from official Maryland sources.

Hair Salon Requirements in Maryland at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Articles of Organization)	MD SDAT	$100 (paper) / $150 (online)	7-10 business days (paper), faster online
Individual Cosmetology License	Board of Cosmetologists (Dept of Labor)	$25 application	Processing after exam passed
PSI Cosmetology Exam (Theory + Practical)	PSI Testing	$77 combined	Schedule after school completion
Salon Permit	Board of Cosmetologists	$200	~45 days (includes inspection)
County Trader’s License	County Clerk of Court	$15-$800	Before opening
Use and Occupancy Permit	Local Zoning/Planning Office	Varies by jurisdiction	Before salon permit application
General Liability Insurance	Private Carrier	~$360-$720/year	Before opening
Workers’ Compensation Insurance	Private Carrier	~$43/month avg per employee	Before hiring first employee
Federal EIN	IRS	Free	Immediate (online)

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

Step 1: Get Your Cosmetology License

Maryland law prohibits anyone from practicing cosmetology without a valid license from the Board of Cosmetologists under the Department of Labor.

Education requirements (two pathways):

• Cosmetology school: 1,500 hours at a Board-approved school (minimum age 17 to enroll)
• Apprenticeship: 24-month apprenticeship under a Senior Cosmetologist, minimum 20 hours/week (minimum age 16, $10 permit fee)

Cosmetology school tuition in Maryland typically ranges from $5,000 to $20,000+ depending on the program and school.

Exam requirements:

• PSI exam: $77 combined fee for theory and practical portions
• Theory covers Maryland law, sanitation, and cosmetology science
• Practical demonstrates hands-on skills
• Exam information available at labor.maryland.gov/license/cos/cosexam.shtml

License application: $25. No formal background check is required, but applicants must disclose any criminal history on the application.

Renewal: Every 2 years, $28 renewal fee. New for 2026: Continuing education is now mandatory – 6 hours per renewal cycle, including 1 hour of domestic violence awareness training. See Board CE requirements for approved courses.

Step 2: Form Your Business Entity

Register an LLC with the Maryland State Department of Assessments and Taxation (SDAT). Filing fee is $100 by mail or $150 online. Apply for a free federal EIN from the IRS (immediate online).

Annual report: Maryland LLCs must file an Annual Report with SDAT and pay the $300 annual fee. This is one of the highest LLC maintenance costs in the country, so budget accordingly.

Step 3: Secure Your Salon Location

Your salon space must meet Board of Cosmetologists standards and local zoning requirements. Before applying for your salon permit, you need:

• Use and Occupancy Permit from your local zoning/planning office (confirms the space is approved for salon use)
• Adequate ventilation and lighting
• Hot and cold running water at workstations
• Separate storage for clean and soiled items
• EPA-registered disinfectant for all implements (per COMAR 09.22.02.04)
• Compliance with local building codes and fire safety

Step 4: Get Your Salon Permit

Apply for a salon permit from the Board of Cosmetologists at dllr.state.md.us/license/cos/cosfirm.shtml.

• Permit fee: $200
• Processing time: Approximately 45 days
• Required documents: Use and Occupancy Permit from local zoning, SDAT Certificate of Good Standing
• Inspection: A Board inspector will visit the salon location before the permit is issued to verify compliance with sanitation and equipment standards
• Renewal: $56 every 2 years

Sanitation compliance: Maryland’s sanitation regulations under COMAR 09.22.02.04 require EPA-registered disinfectant for all implements, proper disposal of single-use items, and clean towels for each client. The Board inspector will check for compliance during the initial visit and subsequent inspections.

Step 5: Register for Taxes and Get Insurance

County trader’s license: Most Maryland counties require a trader’s license to operate a retail business. Fees range from $15 to $800 depending on the county. Apply through your county Clerk of the Circuit Court.

Sales tax: Maryland’s sales tax rate is 6% on tangible goods (retail product sales like shampoo, conditioner, and styling products). Hair salon services themselves are not subject to sales tax in Maryland – only retail product sales are taxable. Register with the Comptroller of Maryland.

Insurance:

• General liability insurance: ~$360-$720/year for $1M per occurrence coverage
• Professional liability (malpractice): Covers claims from chemical burns, allergic reactions, or other service-related injuries
• Workers’ compensation: Required for 1 or more employees in Maryland (~$43/month average). This is a lower threshold than many states
• Property insurance: For salon equipment, furniture, and inventory

Step 6: Ensure All Staff Are Licensed and Meet CE Requirements

Every cosmetologist, nail technician, and esthetician working in your salon must hold their own valid Maryland license. It is illegal to practice without one. As the salon owner, you are responsible for verifying that all practitioners maintain current licenses.

New 2026 continuing education requirement: All licensed cosmetologists must complete 6 hours of continuing education per 2-year renewal cycle. This includes a mandatory 1 hour of domestic violence awareness training. Ensure your staff stays current – the Board can deny renewal for noncompliance.

Cost to Start a Hair Salon in Maryland

Item	Cost	Notes
Cosmetology school tuition	$5,000-$20,000+	1,500-hour program (if not already licensed)
PSI exam (theory + practical)	$77	Combined fee
Individual cosmetology license	$25	Application fee (per person)
LLC Articles of Organization	$100-$150	SDAT filing ($100 paper, $150 online)
Federal EIN	Free	IRS, immediate online
Salon permit	$200	Board of Cosmetologists (includes inspection)
County trader’s license	$15-$800	Varies by county
Use and Occupancy Permit	Varies	Local zoning office
Salon buildout/renovation	$10,000-$75,000	Stations, plumbing, flooring, etc.
Salon equipment	$5,000-$25,000	Chairs, dryers, wash stations, mirrors
Initial product inventory	$2,000-$8,000	Color, chemicals, retail products
General liability insurance	$360-$720/year	$1M per occurrence coverage
Workers’ comp insurance	~$516/year per employee	Required for 1+ employees (~$43/mo)
SDAT Annual Report	$300/year	Due annually, one of the highest in the US

Estimated total startup cost: Licensing and permits alone run about $500-$1,500. With cosmetology school, salon buildout, equipment, and inventory, expect $20,000-$50,000+ depending on your location and scale. Maryland’s $300/year annual report fee is an ongoing cost to factor in.

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• How to Start a Landscaping Business in Maryland
• How to Start a Private Investigation Business in Maryland

← Back to all Maryland business guides

Frequently Asked Questions

What licenses do I need to open a hair salon in Maryland?

You need an individual cosmetology license ($25) and a salon permit ($200), both from the Board of Cosmetologists under the Department of Labor. The individual license requires 1,500 hours of cosmetology school and passing the PSI exam ($77). You also need an LLC or business entity registered with SDAT, a county trader’s license, and a Use and Occupancy Permit from your local zoning office.

How many hours of cosmetology school are required in Maryland?

Maryland requires 1,500 hours of cosmetology training at a Board-approved school (minimum age 17). Alternatively, you can complete a 24-month apprenticeship under a Senior Cosmetologist with a minimum of 20 hours per week (minimum age 16, $10 permit fee). School tuition typically ranges from $5,000 to $20,000+.

Does Maryland require continuing education for cosmetologists?

Yes, as of 2026. Maryland now requires 6 hours of continuing education per 2-year renewal cycle, including a mandatory 1 hour of domestic violence awareness training. This is a new requirement – check the Board’s CE page for approved courses and providers.

How much does the salon permit cost and how long does it take?

The salon permit costs $200 and takes approximately 45 days to process. You must provide a Use and Occupancy Permit from local zoning and an SDAT Certificate of Good Standing. A Board inspector will visit your salon location before the permit is issued to verify sanitation and equipment compliance. The permit renews every 2 years for $56.

Do I need workers’ compensation insurance for my salon?

Yes. Maryland requires workers’ compensation insurance for businesses with 1 or more employees – a lower threshold than many states. The average cost for salon businesses is approximately $43 per month per employee. Even your first hire triggers this requirement, so budget for it from the start.

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

Licensing and permits alone run about $500-$1,500 (LLC, cosmetology license, exam, salon permit, trader’s license). With cosmetology school ($5,000-$20,000+), salon buildout ($10,000-$75,000), equipment ($5,000-$25,000), and initial inventory ($2,000-$8,000), total startup costs range from $20,000 to $50,000+. Maryland’s $300/year SDAT annual report fee is an ongoing expense to factor in.