How to Start a Hair Salon in North Dakota (2026)

Last updated: February 26, 2026

Opening a hair salon in North Dakota requires a cosmetologist license from the North Dakota State Board of Cosmetology and a salon establishment license for your physical location. Cosmetologists must complete 1,800 training hours at a licensed cosmetology school and pass both written and practical examinations. The individual cosmetologist license costs $15 per year and renews annually. The Board adopted a new fee schedule in January 2026 – contact the Board at (701) 224-9800 to confirm current salon establishment license fees. North Dakota’s WSI monopolistic workers’ comp requirement applies to all salon employees before their first day of work.

Hair Salon Requirements in North Dakota at a Glance

Requirement	Agency	Cost	Timeline
LLC formation (Articles of Organization)	ND Secretary of State (FirstStop)	$135	1-3 business days
Cosmetologist license (individual)	ND State Board of Cosmetology	$15/year (annual renewal)	After 1,800 hours training + exam
Cosmetology school training	Licensed ND cosmetology school	$10,000-$20,000+ (tuition)	1,800 hours (approx. 12-18 months)
Written + practical exam	ND Board of Cosmetology	$25 written exam fee	After completing training hours
Salon establishment license	ND State Board of Cosmetology	Contact Board for 2026 fee	Board inspection required before opening
Sales and Use Tax Permit	ND State Tax Commissioner	Free	Apply 30 days before opening
WSI workers’ comp (if employees)	Workforce Safety & Insurance	Premium based on payroll	Before day 1 of employment

How to Start a Hair Salon in North Dakota (Step by Step)

Step 1: Complete Cosmetology School and Earn Your License

To hold a cosmetologist license in North Dakota, you must:

• Complete 1,800 hours of training at a cosmetology school licensed by the North Dakota State Board of Cosmetology
• Pass the Board’s written examination ($25 exam fee) administered through the Board
• Pass a practical (hands-on skills) examination
• Pay the annual cosmetologist license fee: $15/year

The 1,800 hours typically takes 12-18 months of full-time enrollment at a licensed cosmetology school. Contact the North Dakota State Board of Cosmetology for a list of approved schools:

• Website: ndcosmetology.com
• Phone: 701-224-9800
• Email: ndboard@ndcosmetology.com

Out-of-state licensees may apply for an endorsement (reciprocity) for a separate fee of $105 plus the license fee. Contact the Board to verify your training hours qualify for endorsement.

Other license types offered by the Board:

• Nail Technician
• Esthetician / Aesthetician
• Advanced Esthetician
• Manicurist
• Electrologist
• Cosmetology Instructor

Step 2: Register Your Business Entity

File Articles of Organization for an LLC with the North Dakota Secretary of State via FirstStop for $135. Pay the $50 annual report fee each November 15. An LLC separates your personal assets from salon liabilities. Apply for a free EIN from the IRS before opening business bank accounts or state tax accounts.

Step 3: Apply for a Salon Establishment License

Every location where cosmetology services are performed commercially must be licensed as an establishment by the North Dakota State Board of Cosmetology. You cannot open your salon until the Board issues the establishment license.

• Submit the establishment license application to the Board
• 2026 fee note: The Board adopted a new fee schedule effective January 2026. Contact the Board directly at (701) 224-9800 or visit ndcosmetology.com for the current salon establishment license fee
• Designate a licensed cosmetologist as the salon’s professional-in-charge
• Pass a Board inspection of your salon before opening – inspectors check equipment, sanitation stations, mirror/lighting requirements, and compliance with the North Dakota Cosmetology Rules
• Salons operating mobile or booth rental arrangements must also be licensed

Step 4: Register for State Taxes

Register for a free Sales and Use Tax Permit via ND TAP at least 30 days before opening. Hair salon services including haircuts, coloring, perms, and other personal care services are subject to North Dakota sales tax at the 5.0% state rate plus applicable local rates. Product sales (shampoo, styling products sold retail) are also taxable. File sales tax returns monthly, quarterly, or annually based on your tax volume.

Step 5: Register with WSI Before Hiring Staff

Before any employee’s first day of work, register with Workforce Safety & Insurance (WSI) at workforcesafety.com/employers. North Dakota prohibits private workers’ comp insurance – WSI is the only option. Booth renters (independent contractors) are responsible for their own WSI coverage if they qualify as independent contractors. If the IRS would classify a worker as an employee, WSI coverage is required. Penalties for non-compliance: $10,000 plus $100/day.

Step 6: Verify All Working Cosmetologists Hold Valid ND Licenses

Every cosmetologist performing services in your salon must hold a valid, current North Dakota cosmetology license. As a salon owner, you are responsible for ensuring your staff’s license status. The Board publishes license status information – use it to verify credentials before employing any cosmetologist. Also remember: cosmetologist licenses renew annually. Track your employees’ renewal dates to ensure no one works with an expired license.

Cost to Start a Hair Salon in North Dakota

Item	Cost	Notes
Cosmetology school tuition	$10,000-$20,000+	1,800 hours required; varies by school
Board written exam fee	$25	Plus any Prometric practical exam fee if applicable
Individual cosmetologist license	$15/year	Annual renewal
LLC formation	$135	One-time via FirstStop
Annual LLC report	$50/year	Due November 15
Salon establishment license	Contact Board for 2026 fee	New fee schedule effective January 2026; call (701) 224-9800
Salon equipment (chairs, stations, washers)	$5,000-$30,000+	Major variable; new vs. used equipment
General liability insurance	$500-$1,500/year	Recommended; not state-mandated for salons
WSI workers’ comp (per employee)	Payroll-based premium	Required for all salon employees; cosmetology class codes apply

Estimated startup cost (licensing and compliance side, excluding school tuition): $1,000 to $3,000+

Related North Dakota Business Guides

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

← Back to all North Dakota business guides

Frequently Asked Questions

How many training hours do I need to become a licensed cosmetologist in North Dakota?

North Dakota requires 1,800 hours of training at a licensed cosmetology school to qualify for a cosmetologist license. After completing your hours, you must pass a written examination ($25 fee) and a practical exam administered by or through the North Dakota State Board of Cosmetology. After passing, pay the annual license fee of $15 to receive your license. Contact the Board at (701) 224-9800 or visit ndcosmetology.com.

Do I need a separate establishment license to open a salon in North Dakota?

Yes. Every salon or cosmetology establishment in North Dakota must be separately licensed by the North Dakota State Board of Cosmetology. You cannot legally operate a salon without an establishment license. The Board adopted a new fee schedule in January 2026 – contact them at (701) 224-9800 for the current establishment license fee. A Board inspection of your salon is required before the license is issued.

Are hair salon services taxable in North Dakota?

Yes. Hair salon services (haircuts, coloring, styling, perms, waxing, etc.) are subject to North Dakota sales tax. The state rate is 5.0%, with local rates adding up to 3.5% more. Retail product sales from your salon are also taxable. Register for a free Sales and Use Tax Permit via ND TAP at least 30 days before opening.

Can booth renters in my North Dakota salon manage their own workers’ comp?

It depends on their classification. True independent contractors (booth renters who set their own hours, supply their own tools, and are not economically dependent on your salon) are responsible for their own WSI elective coverage if they choose it. However, if the IRS would classify the worker as an employee – even if you call them a booth renter – you must cover them through WSI. Misclassifying employees as independent contractors carries significant penalties. When in doubt, consult with WSI or an employment attorney.

How often does the North Dakota cosmetologist license need to be renewed?

North Dakota cosmetologist licenses renew annually at a cost of $15. The renewal cycle and exact expiration date are set by the Board – contact them to confirm the renewal deadline for your specific license. The Board adopted a new fee schedule in January 2026. No continuing education hours are currently required for North Dakota cosmetology license renewal, though this should be verified directly with the Board as regulations may change.