How to Start a Hair Salon in Montana (2026)

Last updated: February 26, 2026

Opening a hair salon in Montana requires two layers of licensing: an individual cosmetology license for each stylist performing services, and a separate Salon/Shop establishment license for the business location. Both are issued by the Montana Board of Barbers and Cosmetologists, which operates under the DLI Business Standards Division. Before a salon can open, the establishment must pass a pre-opening inspection. Montana also requires no continuing education for cosmetology license renewal – a notable advantage compared to many states. New apprenticeship pathways took effect November 2025 under rule changes implementing HB 246.

Hair Salon Requirements in Montana at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Montana Secretary of State	$35 (online)	3-5 business days
Cosmetologist License (individual)	MT Board of Barbers and Cosmetologists	$80 application fee	4-8 weeks after completing education and exam
Cosmetology School (required education)	Board-approved school	$10,000-$20,000+ tuition	2,000 hours (approx. 12-18 months full-time)
NIC Cosmetology Exam (written + practical)	National Interstate Council (NIC)	~$85-$125 (exam fees)	Must pass with 75% or better on both parts
Salon/Shop Establishment License	MT Board of Barbers and Cosmetologists	$85 (license) + $150 (inspection)	2-4 weeks after passing pre-opening inspection
Pre-Opening Establishment Inspection	MT Board of Barbers and Cosmetologists	$150 inspection fee (included above)	Scheduled after application; required before opening
Workers’ Compensation Insurance	Private insurer or Montana State Fund	Premium-based	Before first employee
Local Business License	City/County Clerk	Varies by city ($25-$100)	1-2 weeks

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

Step 1: Complete Cosmetology Education (2,000 Hours)

Every cosmetologist practicing in Montana must complete 2,000 hours of cosmetology training at a Board-approved school before being eligible to sit for the licensing exam. Board-approved Montana cosmetology schools include programs in Billings, Missoula, Great Falls, Helena, and Bozeman, as well as distance learning options where permitted.

Admission requirements: you must be at least 18 years old and hold a high school diploma or GED equivalent. Tuition varies by school, typically ranging from $10,000 to $20,000+. Financial aid and vocational training grants may be available.

New in 2025-2026: New apprenticeship licensing rules took effect November 22, 2025, implementing HB 246. These rules create additional pathways for earning cosmetology licensure through apprenticeship and provide reciprocity pathways for out-of-state licensees. Contact the Board for details on apprenticeship eligibility and out-of-state license endorsement.

Step 2: Pass the NIC Cosmetology Exam

After completing your 2,000 hours, you must pass the NIC (National Interstate Council of State Boards of Cosmetology) cosmetology examination. Montana uses the NIC exam for all cosmetology licensing. The exam has two parts:

• Written examination: Computerized theory test covering cosmetology science, sanitation, anatomy, and state law. Minimum passing score: 75%.
• Practical examination: Hands-on skills evaluation. Minimum passing score: 75%.

Register for the NIC exam through the Board or NIC’s testing portal. Exam fees are typically $85-$125 depending on delivery format. You must pass both portions; failed portions may be retaken independently.

Step 3: Apply for Your Individual Cosmetologist License

After passing both exam portions, apply for your Montana Cosmetologist license through the Montana Board of Barbers and Cosmetologists:

• Application fee: $80
• Online portal: ebiz.mt.gov/pol
• Board website: boards.bsd.dli.mt.gov/barber-and-cosmetologists
• Phone: (406) 444-6880
• Email: DLIBSDHELP@MT.GOV
• Renewal: Biennially (every 2 years) by March 1; renewal fee: $80
• Continuing education: Not required in Montana for cosmetology license renewal

Submit your application, exam passing documentation, school completion certificate, and any other required documents. Processing takes 4-8 weeks.

Step 4: Form Your Salon Business (LLC)

Register your salon as an LLC with the Montana Secretary of State at biz.sosmt.gov for $35. The LLC separates your personal assets from business liability claims. You will also need an EIN from the IRS (free, instant online) for banking and employee tax purposes.

Step 5: Apply for the Salon/Shop Establishment License

The salon location itself requires a separate Salon/Shop Establishment License from the Board of Barbers and Cosmetologists. This is in addition to each individual stylist’s personal cosmetology license.

• Initial license fee: $85
• Initial inspection fee: $150 (pre-opening inspection required before license is issued)
• Annual renewal fee: $85 (renewal period: May 3 – July 1 each year)
• New license required if the salon relocates or undergoes ownership change of more than 50%
• Salon license page: boards.bsd.dli.mt.gov/barber-and-cosmetologists/license-information/salon-shop

Submit your establishment license application, proof of your individual cosmetology license, and pay both the license and inspection fees.

Step 6: Pass the Pre-Opening Establishment Inspection

A Board inspector will visit your salon to verify it meets all physical and sanitation standards before your Salon/Shop license is issued. Standards cover:

• Shampoo bowl(s) with running hot and cold water
• Proper sterilization and disinfection equipment (autoclave or chemical disinfection)
• Covered waste receptacles at each workstation
• Adequate lighting and ventilation
• Proper storage of implements and chemicals
• Client seating and workstation spacing
• Restroom accessible to clients
• No open food or beverages in the service area (in most jurisdictions)

Address any deficiencies noted by the inspector before your license can be issued. Annual unannounced inspections will follow once you are licensed.

Step 7: Local License and Insurance

Obtain a local business license from your city or county clerk’s office. Carry workers’ compensation insurance if you have any employees (even one part-time stylist). General liability insurance is strongly recommended for client injury or allergic reaction claims.

If stylists rent booth space in your salon rather than working as employees, the booth renter relationship has different tax and insurance implications. The Board of Barbers and Cosmetologists regulates Booth Rental licenses separately ($85 application fee). Consult with a tax advisor about the booth renter vs. employee classification.

Cost to Start a Hair Salon in Montana

Item	Cost	Notes
Cosmetology School Tuition	$10,000-$20,000+	2,000 hours required; financial aid available
NIC Exam Fees	$85-$125	Written + practical; $75% passing score required
Individual Cosmetologist License	$80	Renews biennially for $80; no CE required
LLC Formation	$35	Online at biz.sosmt.gov
Salon/Shop Establishment License	$85	Annual renewal; $85/year
Pre-Opening Inspection Fee	$150	One-time; required before license issuance
Local Business License	$25-$100	Varies by city
Salon Build-Out or Lease	$5,000-$50,000+	Highly variable; existing salon space reduces costs
Equipment (chairs, shampoo bowls, tools)	$5,000-$20,000	Per styling station; used equipment reduces costs
General Liability Insurance (annual)	$400-$1,200	Protects against client injury or allergic reaction claims

Estimated total startup cost: $25,000-$100,000+ (excluding cosmetology school, which is a pre-business personal investment)

Related Montana Business Guides

• How to Start a Daycare in Montana
• How to Start a Cleaning Service in Montana
• How to Become a Private Investigator in Montana

← Back to all Montana business guides

Frequently Asked Questions

How many hours of cosmetology school are required in Montana?

Montana requires 2,000 hours of cosmetology training at a Board-approved school. At full-time attendance (approximately 40 hours/week), this takes about 12-18 months to complete. After completing school hours, you must pass both the written and practical NIC cosmetology exams with a minimum score of 75% on each portion before you can apply for your individual cosmetologist license.

Does Montana require continuing education for cosmetology license renewal?

No. Montana does not require continuing education (CE) for cosmetology license renewal. You simply renew your license biennially (every 2 years) by March 1 and pay the $80 renewal fee. This is a notable advantage compared to states that require 8-16+ hours of CE per renewal cycle. No coursework, training hours, or certificates are needed for renewal.

What does it cost to open a hair salon in Montana?

The state licensing fees alone are: $80 (individual cosmetologist license) + $85 (salon establishment license) + $150 (pre-opening inspection) = $315. However, total startup costs including space build-out, equipment, and insurance typically range from $25,000 to $100,000+. The largest pre-business cost is cosmetology school tuition ($10,000-$20,000+), which is required before you can obtain a license.

Can out-of-state cosmetologists get a Montana license?

Yes. Montana offers licensure by endorsement for out-of-state cosmetologists who hold a valid license in another state. Requirements vary depending on whether your original state’s training hours and exam requirements are comparable to Montana’s. New rules implementing HB 246, effective November 2025, created additional pathways for out-of-state licensees. Contact the Board at (406) 444-6880 for the current endorsement process and documentation requirements.

Does every stylist in my salon need their own individual license?

Yes. Every person performing cosmetology services (cutting, coloring, chemical treatments, styling) in your salon must hold their own individual Montana Cosmetologist license. Your Salon/Shop Establishment license covers the business location, but it does not cover individual practitioners. Hiring an unlicensed person to perform cosmetology services is a violation subject to Board enforcement action.