How to Start a Hair Salon in Washington (2026)

Last updated: February 25, 2026

Opening a hair salon in Washington requires a cosmetology license from the Department of Licensing (DOL) and a salon/shop license for your establishment. The cosmetology program requires 1,600 hours of school training (or 2,000 hours apprenticeship), followed by written and practical exams. The good news: Washington has no continuing education requirement for license renewal, no state income tax, and salon services are not subject to retail sales tax – only B&O tax applies. This guide covers every requirement from official Washington sources.

Hair Salon Requirements in Washington at a Glance

Requirement	Agency	Cost	Timeline
Cosmetology License	DOL	$35 license + $8 processing	After 1,600 hours training + exams
Written Exam (NIC)	DOL/testing provider	$180	When within 100 hours of completing training
Practical Exam (NIC)	DOL/testing provider	$114	When within 100 hours of completing training
Salon/Shop License	DOL	$121	Before opening salon
LLC Formation	Secretary of State	$200	7-10 business days
State Business License (UBI)	DOR	~$50	~10 business days
Workers’ Compensation Insurance	L&I (state fund)	Varies	Before hiring employees
General Liability Insurance	Private Carrier	$300-$1,000/year	Before opening
Federal EIN	IRS	Free	Immediate (online)

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

Step 1: Get Your Cosmetology License

All cosmetologists in Washington must be licensed through the Department of Licensing (DOL).

Training requirements:

Cosmetology school: 1,600 hours of instruction at a DOL-approved school
Apprenticeship: 2,000 hours under a licensed cosmetologist (alternative path)
Minimum age: 17 years old

Exams (NIC – National Interstate Council):

Written exam: $180 (75% minimum passing score)
Practical exam: $114 (75% minimum passing score)
You can schedule exams when within 100 hours of completing your training

License fees:

Initial license: $35 + $8 processing fee
Biennial renewal: $66 (every 2 years)
No continuing education required for renewal

Step 2: Get a Salon/Shop License

Any establishment where cosmetology services are performed for a fee must have a salon/shop license from DOL. The fee is $121. Your salon must meet DOL sanitation and safety standards, including proper ventilation, sterilization equipment, and clean workstations.

Step 3: Form Your Business Entity

Register an LLC with the Secretary of State ($200 online). Get your UBI number from DOR. Apply for a free EIN from the IRS.

Step 4: Understand Your Tax Obligations

B&O Tax: Salon services fall under the Service & Other Activities B&O tax classification at 1.5% of gross receipts (for businesses under $1M). Businesses under $28,000/year may qualify for the Small Business B&O Tax Credit.

Sales Tax: Personal services like haircuts, coloring, and styling are NOT subject to retail sales tax in Washington. However, retail product sales (shampoo, styling products, etc.) ARE subject to sales tax at the combined state and local rate (6.5% state + local).

No Income Tax: Washington has no state income tax, keeping more money in your pocket.

Step 5: Get Insurance and Workers’ Comp

Get general liability insurance and consider professional liability (malpractice) insurance for protection against claims of service-related injury. Workers’ compensation through L&I is mandatory for any employees. If you rent chairs to independent contractors, verify their independent contractor status carefully – misclassification carries penalties.

Step 6: Set Up Your Salon

Secure a location that meets DOL requirements. Key setup items include styling stations, shampoo bowls, sterilization equipment, ventilation system, and retail display area. Budget $10,000-$50,000+ for salon buildout depending on size and location.

Cost to Start a Hair Salon in Washington

Item	Cost	Notes
Cosmetology License	$337	Written ($180) + practical ($114) + license ($35) + processing ($8)
Salon/Shop License	$121	DOL establishment license
LLC Certificate of Formation	$200	One-time SOS filing fee
Annual Report	$70/year	Due annually
State Business License (UBI)	~$50	Processing fee
General liability insurance	$300-$1,000/year	Salon-rated coverage
Professional liability insurance	$200-$500/year	Recommended for service claims
Salon buildout & equipment	$10,000-$50,000+	Stations, chairs, sinks, decor
Initial product inventory	$2,000-$5,000	Professional and retail products
First/last month rent + deposit	$3,000-$10,000+	Varies by location

Estimated total startup cost: $16,300-$67,000+ (varies widely based on salon size, location, and buildout scope)

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Frequently Asked Questions

How many hours do I need for a cosmetology license in Washington?

You need 1,600 hours of cosmetology school training or 2,000 hours of apprenticeship under a licensed cosmetologist. The minimum age is 17.

How much does a cosmetology license cost in Washington?

Total exam and license costs are $337: written exam ($180), practical exam ($114), license fee ($35), and processing ($8). Biennial renewal is $66. No continuing education is required for renewal.

Do I need a salon license in Washington?

Yes. Any establishment where cosmetology services are performed for a fee must have a salon/shop license from DOL. The fee is $121.

Are salon services subject to sales tax in Washington?

No. Personal services like haircuts, coloring, and styling are not subject to retail sales tax. Only B&O tax applies (1.5% for businesses under $1M). However, retail product sales ARE subject to sales tax.

Do I need workers’ compensation for salon employees in Washington?

Yes. Workers’ comp through L&I is mandatory for all employers. Washington uses a monopolistic state fund. Be careful with booth renters – misclassifying employees as independent contractors carries penalties.

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

Total startup costs range from $16,300 to $67,000+ depending on location, size, and buildout scope. The salon buildout and equipment ($10,000-$50,000+) is the largest expense.

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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.

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