Last updated: May 3, 2026

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

Three things make opening a salon in North Dakota structurally different from most states. First, North Dakota’s cosmetology training requirement is a school-based 1,800 hours, with no apprenticeship pathway as an equivalent track – if you trained on the apprenticeship side in another state, your hours typically do not transfer cleanly into a ND license. Second, hair braiding is not deregulated in ND – unlike Wisconsin, Kentucky, or many other states that exempted natural hair braiders from cosmetology licensure in the last decade, North Dakota requires a full cosmetology license to braid hair commercially. Third, the 2026 cosmetology law and rule changes took effect January 1, 2026, and the new fee schedule applies to all licenses issued or renewed in 2026 – confirm current fees on the Board’s website before submitting any application.

This guide compiles the specific North Dakota agency requirements, statutory citations, training hours, and 2026 fee changes for opening a salon in 2026. Source agencies are the North Dakota State Board of Cosmetology (under NDCC chapter 43-11 and NDAC Title 32), the ND Secretary of State, the ND Office of State Tax Commissioner, and Workforce Safety & Insurance (WSI).

North Dakota Salon Requirements at a Glance

Requirement	Agency	Cost	Timeline
Cosmetology training (1,800 hours)	ND Board-approved school	$15,000-$22,000 tuition (typical)	~10-15 months full-time
NIC theory exam + NIC practical exam	National-Interstate Council via ND Board	Per Board fee schedule	Pass at 75%
ND laws and statutes test	ND Board of Cosmetology	Per Board fee schedule	Pass at 75%
Cosmetologist license (individual)	ND Board of Cosmetology	2026 schedule – confirm with Board	Annual renewal by Dec 31
Salon License (establishment)	ND Board of Cosmetology	2026 schedule – confirm with Board	Required before opening
Late renewal penalty	ND Board of Cosmetology	$50 per license	Applies after Dec 31
LLC Articles of Organization	ND SOS – FirstStop	$135	1-3 business days
WSI workers’ compensation policy	Workforce Safety & Insurance	Premium per WSI class code (~9586 Beauty Parlor)	Before first W-2 employee
Sales & use tax permit (retail products only)	ND TAP	Free	Required if selling retail products
Local zoning approval / occupancy permit	City building department (Fargo, Bismarck, Grand Forks, etc.)	Varies	Before opening

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

Step 1: Complete Training Hours for Your Scope

The ND Board of Cosmetology issues separate licenses by scope. Each has a specific training hour requirement under NDAC chapter 32-05-01:

License	Training Hours	What It Authorizes
Cosmetologist	1,800 hours	Hair, skin, nails – full-scope salon services
Esthetician	600 hours	Skin care – facials, waxing, makeup, body wraps
Manicurist	350 hours	Nail services – manicures, pedicures, nail extensions
Instructor	Per Board rule	Teaching at a Board-approved school

Cosmetologist training is broken into specific subject hours: hair shaping, hair styling, nails, facials, chemical services, theory, and law/sanitation. The full curriculum is set in NDAC 32-05-01.

School-based pathway only. Unlike Wisconsin, where apprenticeship up to 4,000 hours is an equivalent path, North Dakota requires the 1,800 hours to be completed at a Board-approved school. ND has no formal apprentice license that converts to cosmetologist via on-the-job hours alone.

Reciprocity: Licensees from other states with comparable training can apply for endorsement using SFN 11800. The Board reviews each application on its specifics – hour counts, exam equivalence, and active license status. If you trained as an apprentice in a state that allows it, expect a longer review and possibly required additional training.

Step 2: Pass the Three-Part Exam Stack

Cosmetologist candidates must pass three separate exams at 75% or higher:

1. NIC Theory (written) Exam: Administered by the National-Interstate Council via the ND Board. Standard cosmetology theory.
2. NIC Practical Exam: Hands-on demonstration of cosmetology skills.
3. North Dakota Laws and Statutes Test: ND-specific – chapter 43-11 of the NDCC, Board rules under NDAC Title 32, salon sanitation requirements under NDAC 32-03.

Esthetician and manicurist candidates take the equivalent NIC exams (theory + practical) for their category, plus the ND laws test. Failed exams may be retaken per Board policy.

Step 3: Submit the Individual License Application

After passing exams, submit your individual license application to the ND Board of Cosmetology at ndcosmetology.com. Required attachments:

• School transcript showing completed hours
• Exam pass slips for NIC theory, NIC practical, and ND laws test
• Application fee (per 2026 fee schedule)
• Passport-style photo
• Background check authorization

The Board reviews and issues licenses on a rolling basis. Once issued, the license is valid until the next December 31 – all ND cosmetology licenses renew annually on a calendar-year cycle.

Step 4: Get the Salon License (Establishment License) Under NDAC Chapter 32-03

Holding a personal cosmetology license does not authorize you to operate a salon. You also need a separate Salon License issued by the ND Board of Cosmetology under NDAC chapter 32-03. The Salon License covers the establishment itself.

Before issuing a Salon License, the Board inspects the location for compliance with NDAC 32-03 sanitation rules:

• Hot and cold running water at each shampoo bowl and station
• Approved sanitation procedure for tools and surfaces
• Proper chemical storage (separated from food, locked where required)
• Proper ventilation for chemical services
• Adequate lighting
• Posted Board materials (license display, sanitation chart)
• Restroom access for clients and staff

The Salon License is required regardless of whether you personally provide services or just employ/lease space to licensed practitioners. Booth rental salons are still salon establishments under ND law.

Step 5: Renew Annually by December 31

All North Dakota cosmetology licenses – personal and salon – are issued on a calendar-year cycle and must be renewed by December 31 each year. A $50 late penalty per license applies for renewals paid or postmarked after December 31. Renewal late beyond a Board-set window may require re-licensure rather than simple renewal.

North Dakota does not require continuing education hours for routine cosmetology renewal as of 2026 – the renewal is a fee-and-attestation cycle. This is structurally different from states like Texas (1 hour/year), Iowa (8 hours/biennial), or Minnesota (4 hours/annually). Use the time savings to focus on continuing education that drives revenue rather than compliance.

Step 6: Open the WSI Workers’ Comp Account

North Dakota is one of four monopolistic workers’ compensation states. Private workers’ comp policies are not legal in ND – all coverage flows through Workforce Safety & Insurance (WSI) at workforcesafety.com.

Salon Staffing Model	WSI Coverage Required?
Owner only (sole prop, no staff)	Optional – sole prop is exempt; can elect
Owner + W-2 employee stylists	Yes – required before first hire
Booth rental salon (1099 contractors)	Required for any W-2 staff (front desk, cleaning); not for true 1099 stylists
Mixed model (some W-2, some 1099)	Yes – required for the W-2 portion

The relevant WSI class code for salon work is typically NCCI 9586 (Barber Shop or Beauty Parlor). Premium per $100 of payroll varies year to year. Worker classification is audited. Misclassifying W-2 employees as 1099 contractors triggers retroactive premium plus penalties – if a stylist’s chair, products, and schedule are controlled by the salon, ND treats that stylist as an employee even if labeled “booth renter.” The classic test is whether the stylist sets their own rates, brings their own product, and could refuse a referral – if not, ND will likely treat them as W-2 on audit.

Step 7: Form the LLC and Set Up Sales Tax for Retail Products

File Articles of Organization on the ND Secretary of State FirstStop portal for $135. The annual report is $50, due November 15.

For sales tax: salon services are NOT subject to ND sales tax under NDCC chapter 57-39.2. Haircuts, color, perms, manicures, facials, waxing, and body treatments are all non-taxable services. Retail products ARE taxable: shampoo, conditioner, styling product, take-home color, hair extensions sold to clients, retail nail polish. Combined sales tax rates run from ~5% (state-only) up to ~8% in Fargo and Grand Forks.

Register for the sales and use tax permit through TAP at tap.nd.gov if you sell any retail products. The permit is free. File monthly or quarterly depending on volume.

The Hair Braiding Question: ND Did Not Deregulate

This is one of the more distinctive features of ND cosmetology law versus its neighbors. In the 2010s and 2020s, many states – Wisconsin (2021), Kentucky, Iowa, Minnesota, Texas, and others – deregulated natural hair braiding, removing the cosmetology license requirement for braiders who use no chemicals, heat, or wax. The economic argument was that requiring 1,500-1,800 hours of cosmetology training to braid hair was a meaningful barrier to entry for African and Caribbean immigrant communities and other groups whose braiding skills are culturally taught rather than school-taught.

North Dakota has not gone this direction. Under the current ND cosmetology law, hair braiding (defined as the maintenance of natural hair braids without chemicals, heat, or wax) may only be performed by a licensed cosmetologist in a licensed salon. This means:

• A natural hair braider operating without a cosmetology license is practicing without authorization, even if no chemicals are used
• Mobile or in-home braiding services are not exempted from the licensure requirement
• Braiding-only services performed in unlicensed locations expose the operator to Board enforcement

This is a relevant policy point because Fargo’s growing African immigrant population includes meaningful natural-hair-braiding demand. Practitioners working in ND should plan for the full 1,800-hour cosmetology pathway or relocate to a state with a deregulated braiding pathway.

North Dakota Salon Market: Where the Demand Is

• Fargo / West Fargo: Largest metro area; salon density is highest here. NDSU student demographic creates demand for color services and shorter hair styles. West Fargo is one of the fastest-growing ND cities by household.
• Bismarck: State government workforce demand for traditional professional styles plus growing premium spa/salon segment.
• Grand Forks: University and military demographic. UND students and Air Force families drive demand; high turnover among military-spouse stylists.
• Williston / Dickinson: Bakken oil-economy markets. Boom-period demand for premium services from oil-services workers and their families is real but cyclical.
• Reservation communities (Standing Rock, Spirit Lake, Turtle Mountain, Fort Berthold): Underserved by salon density. Mobile-services or partnership models with tribal health organizations can be a niche entry point for a new operator.

Booth rental versus W-2 model is one of the bigger structural choices ND salon operators face. Because ND is a monopolistic workers’ comp state, the W-2 model carries WSI premium that booth-rental does not. But ND audits worker classification aggressively, and the misclassification penalty math (retroactive premium + interest + civil penalty) often exceeds the savings on the front end. Many established Fargo and Bismarck salons run booth rental with proper documentation: separate stylist business licenses, separate retail accounts, written booth-rental contracts, stylist-set pricing, and stylist-supplied product.

Cost to Start a Hair Salon in North Dakota

Cost Item	Single-Chair Studio	4-Chair Booth Rental	6-Chair Full-Service Salon
LLC formation + first annual report	$135 + $50	$135 + $50	$135 + $50
Cosmetology school tuition (if not already licensed)	$15,000-$22,000	n/a	n/a
Personal cosmetology license	Per 2026 schedule	n/a	n/a
Salon License + inspection	Per 2026 schedule	Per 2026 schedule	Per 2026 schedule
Lease deposit + first month commercial	$2,000-$4,000	$4,000-$8,000	$6,000-$15,000
Build-out (plumbing, chairs, mirrors, station)	$5,000-$15,000	$15,000-$35,000	$30,000-$80,000
Initial product / color inventory	$1,500-$3,000	$4,000-$8,000	$8,000-$15,000
POS + booking software (annual)	$300-$900	$900-$2,500	$2,500-$5,000
Liability insurance + professional liability	$400-$700	$900-$1,500	$1,500-$3,000
WSI workers’ comp deposit (if W-2)	n/a if owner-only	varies (front desk only)	$1,000-$3,000
Marketing + grand opening	$500-$2,000	$1,500-$5,000	$3,000-$10,000
Working capital (3 months)	$5,000-$10,000	$15,000-$30,000	$30,000-$60,000
Total estimated startup	$30,000-$57,000	$45,000-$95,000	$85,000-$200,000+

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Frequently Asked Questions

How many hours of cosmetology training do I need in North Dakota?

North Dakota requires 1,800 hours of cosmetology training at a Board-approved school for a full cosmetologist license under NDAC chapter 32-05-01. Esthetician licensure requires 600 hours; manicurist requires 350 hours. Unlike some states, ND does not have an apprenticeship pathway equivalent to school hours – the 1,800 hours must be completed in a school setting. Reciprocity is available for licensees from other states with comparable training (Form SFN 11800).

What exams do I need to pass to get a North Dakota cosmetology license?

Cosmetology candidates must pass three separate exams at 75% or higher: (1) the NIC theory/written exam, (2) the NIC practical exam, and (3) the North Dakota laws and statutes test. Esthetician and manicurist candidates take the equivalent NIC exams for their category plus the ND laws test. The ND Board of Cosmetology administers the laws test directly; NIC exams are administered through the National-Interstate Council.

Do I need a separate license for the salon establishment in North Dakota?

Yes. Holding an individual cosmetology license does not authorize you to operate a salon. The Salon License under NDAC chapter 32-03 is a separate establishment license issued by the ND Board of Cosmetology. The Board inspects the location before approval – water access, sanitation, ventilation, chemical storage, and posted Board materials. The Salon License is required even for booth rental establishments where the owner does not personally provide services.

When do North Dakota cosmetology licenses renew?

All ND cosmetology licenses (individual and salon) renew on an annual calendar-year cycle. Renewal is due by December 31 each year. A $50 late penalty per license applies for renewals paid or postmarked after December 31. North Dakota does not require continuing education hours for routine renewal as of 2026 – it is a fee-and-attestation cycle.

Is hair braiding deregulated in North Dakota?

No. Unlike Wisconsin (2021), Kentucky, Iowa, Minnesota, and Texas – which deregulated natural hair braiding from cosmetology licensure – North Dakota requires hair braiding to be performed by a licensed cosmetologist in a licensed salon. The braiding definition under ND law specifies maintenance of natural hair braids without chemicals, heat, or wax. Practitioners offering braiding services in ND need the full 1,800-hour cosmetology license.

Are salon services taxable in North Dakota?

No – salon services (haircuts, color, perms, manicures, facials, waxing) are exempt from ND sales tax under NDCC chapter 57-39.2. However, retail products are taxable – shampoo, conditioner, styling products, take-home color, hair extensions sold to clients all carry sales tax. The state rate is 5%; combined rates run ~8% in Fargo, ~7% in Bismarck, depending on local option taxes. Register for the sales and use tax permit through TAP at tap.nd.gov if you sell any retail products.

Can I run a booth rental salon in North Dakota without workers’ comp on the stylists?

Only if the booth renters are truly independent contractors in a way that survives a WSI audit. ND audits worker classification aggressively. The classic test: do the stylists set their own pricing, supply their own products, schedule their own hours, and have the right to refuse work? If yes, they are likely true 1099. If the salon controls pricing, schedules, products, or referrals, ND will likely treat them as W-2 employees on audit, triggering retroactive WSI premium plus penalties. Document the booth-rental relationship with written contracts, separate ND business licenses for each stylist, and separate retail accounts.

What does it cost to open a hair salon in North Dakota?

Single-chair studio (already licensed): $30,000-$57,000. Four-chair booth rental: $45,000-$95,000. Six-chair full-service salon: $85,000-$200,000+. Major variables are commercial real estate (much cheaper in ND than coastal markets), build-out (sinks, plumbing, station fixtures), initial inventory ($1,500-$15,000 depending on size), and working capital. Cosmetology school tuition adds $15,000-$22,000 if you are not already licensed.