How to Start a Hair Salon in Minnesota (2026)

Last updated: February 25, 2026

Starting a hair salon in Minnesota requires licensing through the Board of Cosmetologist Examiners (BCE). Individual cosmetologists must complete 1,550 hours of training and pass both written and practical exams (or 900 hours for the newer hair technician license). The initial cosmetologist license costs $195 and the salon license costs $350, both renewing every 3 years. Every salon must have a Designated Licensed Salon Manager (DLSM). Minnesota’s infection control rules are extensive and strictly enforced, with inspections every 12-18 months. Professional liability insurance of at least $25,000 per claim is required for all salons. This guide covers every requirement from official Minnesota sources.

Hair Salon Requirements in Minnesota at a Glance

Requirement	Agency	Cost	Timeline
Cosmetologist License (individual)	Board of Cosmetologist Examiners	$195 initial	1,550 hours training + exam
OR Hair Technician License	Board of Cosmetologist Examiners	$195 initial	900 hours training + exam
Manager License	Board of Cosmetologist Examiners	$195 initial	Required for DLSM role
Salon License	Board of Cosmetologist Examiners	$350 initial	15 working days processing
Written & Practical Exams	Board-approved testing	$60 total	Schedule after completing hours
LLC Formation	Secretary of State	$155 (online)	3-5 business days
Professional Liability Insurance	Private Carrier	$25K per claim minimum	Required for salon license
Workers’ Compensation Insurance	DLI (private carriers)	Varies by payroll	Before hiring employees

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

Step 1: Get Your Cosmetologist License

The Minnesota Board of Cosmetologist Examiners requires:

Age 17 or older with a high school diploma or GED
1,550 hours at a Minnesota-licensed cosmetology school (full cosmetologist)
OR 900 hours for a hair technician license (hair-only services – new as of July 2024)
Pass both a written exam (155 general + 35 state law questions) and practical exam
Exam fees: $35 (general) + $25 (state) = $60 total
License fee: $155 + $40 application = $195 initial
License valid for 3 years

Renewal: $100 + $15 = $115 every 3 years. Requires 8 hours of continuing education: 4-hour Core CE (laws, health, safety, infection control) + 4-hour Professional Practice CE.

Step 2: Get a Manager License

Every Minnesota salon must have a Designated Licensed Salon Manager (DLSM) – a licensed cosmetologist who also holds a separate manager license.

Manager license: $155 + $40 application = $195 initial
Renewal: $130 + $15 = $145 every 3 years
If you’re opening your own salon, you’ll likely serve as both owner and DLSM

Step 3: Form Your Business Entity

Register an LLC with the Secretary of State ($155 online, free annual renewal). File a Certificate of Assumed Name if using a business name different from your LLC name ($50 online + newspaper publication). Get a federal EIN from the IRS. Register for a Minnesota Tax ID (for sales tax on retail product sales).

Step 4: Secure Your Location and Get Insurance

Find a location zoned for commercial/retail salon use. Obtain the required insurance before applying for your salon license:

Professional liability insurance: Minimum $25,000 per claim / $50,000 per policy year (required by BCE for salon license)
Workers’ compensation: Mandatory for any employees (Minnesota has no minimum threshold)
General liability insurance: Recommended ($1M per occurrence for client injuries, slip-and-fall)

Residential salons are permitted in Minnesota, but the cosmetology area must be completely partitioned off from living quarters.

Step 5: Apply for Your Salon License

Submit the salon license application with:

Completed application (available in English, Spanish, Vietnamese)
Certificate of Assumed Name and Certificate of Organization
Certificate(s) of insurance (professional liability + workers’ comp)
Salon floor plan
Designation of your DLSM
Fee: $250 + $100 application = $350 initial
Renewal: $175 + $50 = $225 every 3 years

The Board must issue the license, deny it, or notify you of additional review within 15 working days of receiving a complete application.

Step 6: Meet Infection Control and Compliance Standards

Minnesota’s infection control rules (MN Rules 2105.0375) are extensive. Key requirements:

Handwashing with soap and water before every client service
Only hospital-level EPA-registered disinfectants (bactericidal, virucidal, fungicidal) – alcohol alone is NOT acceptable
Tools fully submerged in disinfectant for manufacturer’s contact time
Tools that puncture/invade skin must be sterilized (FDA-registered autoclave, spore-tested every 30 days)
Blood exposure protocol: gloves, antiseptic, sterile bandage, sealed disposal
Single-use items disposed after each client
Hair/debris removed from floor immediately after each service
Work surfaces and chairs disinfected daily
Laundered towels washed in hot water, dried on hot, stored in clean covered containers
One fire extinguisher, maintained annually
Inspection results must be posted at customer entrance

Inspections occur every 12-18 months. Violations carry penalties of $100-$1,000 per incident. Operating without a license is a misdemeanor with civil penalties up to $2,000.

Cost to Start a Hair Salon in Minnesota

Item	Cost	Notes
Cosmetologist License (individual)	$195	3-year term, $115 renewal
Manager License	$195	3-year term, $145 renewal
Salon License	$350	3-year term, $225 renewal
Licensing Exams	$60	Written ($35) + State ($25)
LLC Formation	$155	Free annual renewal
Professional Liability Insurance	$300-$800/year	$25K/$50K minimum required
General Liability Insurance	$500-$1,500/year	Recommended $1M coverage
Workers’ Comp Insurance	Varies by payroll	Mandatory for employees
Salon Build-Out	$10,000-$75,000	Stations, plumbing, electrical, decor
Equipment (chairs, sinks, dryers)	$5,000-$25,000	Per station: ~$2,000-$5,000
Initial Product Inventory	$1,000-$5,000	Color, retail products, supplies

Estimated total startup cost: $18,000-$110,000 (varies widely by location size, number of stations, and build-out needs)

Related Minnesota Business Guides

← Back to all Minnesota business guides

Frequently Asked Questions

How many hours of training do I need for a cosmetology license in Minnesota?

1,550 hours at a Minnesota-licensed cosmetology school for a full cosmetologist license. Minnesota also offers a hair technician license (900 hours, hair-only services) as a lower-barrier alternative introduced in July 2024.

How much does a salon license cost in Minnesota?

The initial salon license costs $350 ($250 license fee + $100 application). Renewal is $225 every 3 years. You also need a cosmetologist license ($195) and a manager license ($195) for the DLSM requirement.

What is a Designated Licensed Salon Manager?

Every Minnesota salon must have a DLSM – a licensed cosmetologist who also holds a separate manager license ($195). The DLSM ensures all practitioners and services comply with Board rules. If you’re a solo salon owner, you serve as your own DLSM.

Is booth rental allowed in Minnesota?

Yes. Suite-style salons are regulated under MN Rules 2105.0397. Each suite can operate under one shared salon license or have its own individual license. Each suite must have a handwashing sink and disinfecting area. Booth renters must carry professional liability insurance.

What insurance is required for a salon in Minnesota?

Professional liability insurance is required: minimum $25,000 per claim / $50,000 per year. Workers’ compensation is mandatory for any employees. General liability insurance is strongly recommended but not legally mandated by the Board.

How much does it cost to start a salon in Minnesota?

Total startup costs range from $18,000-$110,000 depending on location, size, and build-out. Licensing costs alone (cosmetologist + manager + salon) total $740 initially. The biggest variable is the build-out ($10,000-$75,000).

More Minnesota 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.

Learn more about our research process