How to Start a Hair Salon in Nebraska (2026)

Last updated: February 25, 2026

Opening a hair salon in Nebraska requires two separate DHHS licenses: an individual cosmetology license for each stylist and a salon establishment license for the business itself. The Nebraska Department of Health and Human Services administers both. The salon establishment application requires a facility sketch, proof of liability insurance, and a $150 fee – and DHHS must approve the application before you can open. This guide covers every requirement using official DHHS sources.

Hair Salon Requirements in Nebraska at a Glance

Requirement	Agency	Cost	Timeline
LLC – Certificate of Organization	Nebraska Secretary of State	$100 online + $2 fee	3-5 business days
Federal EIN	IRS	Free	Immediate (online)
Individual Cosmetology License	Nebraska DHHS	$30 application fee	After 1,800 hours of school + exam pass
NIC Written Exam (cosmetology)	PSI / NIC (DHHS-approved)	Varies (~$100)	After completing school hours
Salon Establishment License	Nebraska DHHS	$150	DHHS must approve before opening
General Liability Insurance (for salon)	Private insurer	Varies	Required with salon establishment application
Nebraska Sales Tax Permit	Nebraska Dept. of Revenue	Free	Immediate (online)
Workers’ Compensation Insurance	Private insurer (required by NEWCC)	Varies	Before first employee starts

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

Step 1: Get Your Individual Cosmetology License

Every cosmetologist who provides services in your salon must hold an individual Nebraska cosmetology license issued by DHHS. You cannot operate as an owner-operator without your own individual license if you will be cutting hair or providing cosmetology services.

• Training required: Complete 1,800 hours at a DHHS-approved cosmetology school and receive a diploma upon graduation.
• Examinations: Pass two exams:
  1. NIC written examination (administered by PSI). This satisfies both written and practical requirements – Nebraska does not require a separate hands-on practical exam.
  2. Jurisprudence examination: A free, open-book exam of 50 multiple-choice questions covering Nebraska cosmetology law. Taken online.
• Application: Submit a cosmetology license application with a $30 fee to Nebraska DHHS. Download the application at: dhhs.ne.gov – Cosmetology and Esthetics
• DHHS contact: Nebraska DHHS Cosmetology Licensure Division, (402) 471-2115

Step 2: Form Your Business Entity and Get an EIN

An LLC is the standard structure for Nebraska salon owners. File a Certificate of Organization with the Nebraska Secretary of State online at nebraska.gov/apps-sos-edocs. Fee: $100 online (plus $2 processing fee).

Publication requirement: After filing your LLC, you must publish a notice of organization in a legal newspaper in the county of your principal office. File an Affidavit of Publication with the SOS after publication.

Apply for a free federal EIN at irs.gov.

Step 3: Find and Prepare Your Salon Space

Nebraska DHHS sets specific physical requirements for salon establishments. Your space must meet these before DHHS will issue an establishment license:

• Minimum floor space: 150 square feet for 1 licensee, plus an additional 50 square feet for each additional licensee working in the salon at the same time.
• Physical separation: The salon must be physically separated from all other business or residential activities (except barbering, manicuring, pedicuring, and retail sales) by at least 6-foot fixed walls or partitions.
• Toilet facilities: Required unless the salon is located in a commercial building where public toilet facilities open directly off a public area are available.
• Building and fire code: The salon must meet all applicable state and local building codes and fire codes. Check with your local building department before signing a lease.
• Ventilation: Adequate ventilation for chemical use (color, perms, relaxers) is required.

Step 4: Get General Liability Insurance

Nebraska requires proof of general liability insurance as part of the salon establishment license application. DHHS will not approve your application without it. The policy must provide minimum property damage, bodily injury, and liability coverage. Work with a licensed Nebraska insurance agent to get a commercial general liability policy before submitting your salon application.

Step 5: Apply for Your Salon Establishment License

Once your space is ready and you have insurance, apply for the salon establishment license through DHHS. Your application must include:

• Completed salon establishment application (download from dhhs.ne.gov – Salon Application PDF)
• A sketch or diagram of the salon with room dimensions and layout, showing all stations, sinks, shampoo bowls, and processing areas
• Proof of liability insurance
• Fee: $150

Important: DHHS must review and approve your application before you can legally open the salon. Do not schedule your opening date until you have written DHHS approval in hand. A DHHS self-inspection form must be completed as part of the application.

Mail to or contact:
Nebraska DHHS – Cosmetology and Esthetics Licensure
Phone: (402) 471-2115
dhhs.ne.gov – Cosmetology and Esthetics

Note on expired licenses: Nebraska does not reinstate expired salon establishment licenses. If your salon establishment license expires, you must submit a completely new application with a new $150 fee, new sketch, and new insurance proof.

Step 6: Register for Taxes and Set Up Employer Accounts

• Sales Tax: Retail product sales (shampoo, styling products) are taxable in Nebraska. Register for a free Nebraska Sales Tax Permit at revenue.nebraska.gov. Hair services themselves are generally not subject to Nebraska sales tax, but retail product sales are.
• Income Tax Withholding and UI: If you have employees or booth renters classified as employees, register through the NeDOR and NEworks portals.
• New Hire Reporting: Report each new hire within 20 days at ne-newhire.com.
• Workers’ Compensation: Required for any business with one or more employees in Nebraska. newcc.gov

Cost to Open a Hair Salon in Nebraska

Item	Cost	Notes
LLC Certificate of Organization (online)	$102	$100 + $2 processing fee
LLC newspaper publication	$30-$75	Required; varies by county
Individual Cosmetology License Application	$30	Per cosmetologist; after 1,800 hours + exam
NIC Written Exam	~$100	Per cosmetologist; PSI-administered
Salon Establishment License	$150	Annual DHHS license; new application if expired
General Liability Insurance	~$600-$1,800/year	Required with salon license application
Nebraska Sales Tax Permit	$0	Free; no renewal required
Federal EIN	$0	Free from IRS
Workers’ Compensation Insurance	Varies	Required if 1+ employees

Note: Cosmetology school (1,800 hours) is a major pre-business cost, typically $10,000-$20,000+. Salon buildout, equipment (chairs, shampoo bowls, mirrors, dryers), and initial inventory are your largest business startup costs and are not reflected above.

Related Nebraska Business Guides

• How to Start a Cleaning Service in Nebraska
• How to Start a Food Truck in Nebraska
• How to Start a Daycare in Nebraska
• How to Start an HVAC Business in Nebraska
• How to Start a Landscaping Business in Nebraska
• How to Become a Private Investigator in Nebraska

← Back to all Nebraska business guides

Frequently Asked Questions

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

Two DHHS licenses are required: (1) an individual cosmetology license for each stylist who will provide services ($30 application fee; requires 1,800 school hours and passing the NIC exam), and (2) a salon establishment license ($150; requires a facility sketch, proof of liability insurance, and DHHS approval before opening). Nebraska DHHS administers both. Contact DHHS at (402) 471-2115 or visit dhhs.ne.gov.

How many training hours are required for a Nebraska cosmetology license?

Nebraska requires 1,800 hours of training at a DHHS-approved cosmetology school. After completing the program and receiving a diploma, you must pass the NIC written exam (administered by PSI) and a free jurisprudence exam before submitting your $30 license application. Nebraska does not require a separate hands-on practical exam – the NIC written exam satisfies both written and practical requirements.

What are the space requirements for a Nebraska salon establishment?

Your salon must have at least 150 square feet of usable floor space for one licensee, plus an additional 50 square feet for each additional licensee working at the same time. The salon must be physically separated from other business activities by at least 6-foot fixed walls or partitions. Toilet facilities must be available, either within the salon or in a commercial building where public restrooms open off a public area.

Can I rent booth space to independent contractor stylists in Nebraska?

Yes. Booth rental is common in Nebraska salons. However, DHHS requires that your salon establishment license covers all stations in your salon, regardless of whether stylists are employees or independent contractors. Each renting stylist must hold their own individual Nebraska cosmetology license. If booth renters are truly independent contractors, you may not need to provide workers’ comp for them – but misclassification is a significant legal risk; consult an attorney before deciding their status.

What happens if my Nebraska salon establishment license expires?

Nebraska does not reinstate expired salon establishment licenses. You must submit a completely new application with a new $150 fee, a new facility sketch, and new proof of liability insurance. This is different from most states, which allow renewal even after expiration. Keep track of your renewal date and renew before your license expires to avoid reapplying from scratch.

Do I need a separate license for esthetics services in Nebraska?

Yes. Esthetics (facials, skin care) is a separate license category from cosmetology in Nebraska. An individual esthetician license requires 1,000 hours of training at an approved school and passing the NIC esthetics exam. If your salon offers both hair and skin services, each service provider must hold the appropriate individual license for their specific services. The salon establishment license covers the business – individual practitioners need their own licenses.