How to Start a Hair Salon in North Dakota: Cosmetology Board Licenses, 1,500 Hour School Minimum and the Independent Licensee Booth-Rent License
How to Start a Hair Salon in North Dakota: Cosmetology Board Licenses, 1,500 Hour School Minimum and the Independent Licensee Booth-Rent License
Opening a hair salon in North Dakota involves two separate tracks. The first is forming the business with the Secretary of State. The second is licensing, and that comes from the State Board of Cosmetology, not the Secretary of State. North Dakota has no general statewide business license, so registering your LLC does not let you cut hair. The shop itself needs an establishment license, and every stylist who works there needs an individual license or an independent licensee license if they rent a booth.
This article is informational content, not legal or tax advice. Entity choice, booth-rent agreements, how you classify workers and your tax obligations all affect your liability and your bottom line. Talk with a qualified North Dakota attorney and a CPA before you sign a lease or a booth agreement.
What You Need Before You Start
- A business name you have checked against the Secretary of State business search at firststop.sos.nd.gov/search/business
- A North Dakota registered agent with a physical address in the state, approved by that agent before you name them
- A FirstStop account for filing your Articles of Organization
- Training transcripts from a licensed cosmetology school, or an apprenticeship registration if you train under the apprenticeship route
- A floor plan showing styling stations, shampoo areas, treatment rooms and any rental booths
- A roster of everyone who will work in the salon, with each person's license type and license number
- A budget that covers state license fees, Secretary of State fees, and the sales tax permit
- A federal employer identification number if you will have employees or taxable sales
Step 1: Choose a Legal Structure and Register It
Most salon owners form a limited liability company. The Articles of Organization are filed under North Dakota Century Code Chapter 10-32.1 through the FirstStop portal at firststop.sos.nd.gov. The filing fee is $135. The LLC then owes a $50 annual report, due November 15 every year.
A corporation is the other option. Articles of Incorporation under Chapter 10-19.1 cost $100 to file, and the corporation's annual report is $25, due August 1 each year. Corporations and LLCs are taxed differently in North Dakota, so compare the two with your CPA before you choose.
Your name must follow the rules in NDCC 10-32.1-11. An LLC name must include 'limited liability company,' 'L.L.C.' or 'LLC.' It cannot include 'corporation,' 'incorporated,' 'limited partnership' or 'limited liability partnership,' or their abbreviations. It also cannot use 'limited' or 'company' unless the name carries the LLC wording. The Secretary of State must be able to tell your name apart from every other registered entity, reserved name and registered trade name. If you want to hold a name while you finish paperwork, a name reservation costs $10 and lasts 12 months, renewable for successive 12 month periods.
Every LLC and corporation must maintain a North Dakota registered agent. The business cannot serve as its own agent. The agent must be an individual who lives in North Dakota, or a North Dakota or out of state entity that is registered with the Secretary of State and has a North Dakota business office. Get the agent's approval before you name them. Changing the agent or address costs $10, and service of process costs $25.
If the salon will operate under a name other than the LLC's legal name, such as 'Prairie Glow Hair Studio' for a company named 'Prairie Glow Hair Studio LLC,' you may also need a trade name registration. Trade name registration costs $25 to register, $25 to amend and $25 to renew. Registration must be renewed every 5 years and gives you exclusive rights to the name in North Dakota only. Trade names are filed with the Secretary of State, not your county.
Step 2: Learn Which Licenses Apply to Your Salon
The State Board of Cosmetology licenses cosmetology, esthetics, advanced esthetics, manicuring, instruction, establishments and schools under NDCC Chapter 43-11. Operating without the right license is not allowed, and the board's rules also bar employing an unlicensed person under 43-11-13. The table below shows the statutory maximum fees and school minimums. The board has published a new fee schedule for 2026, so confirm the amounts you will actually pay at ndcosmetology.com.
| License | Who holds it | Statutory maximum fee (original / annual) | School minimum hours |
|---|---|---|---|
| Cosmetologist | Stylists who cut, color and style hair | $50 / $50 | 1,500 |
| Esthetician | Facial and skin care services | $50 / $50 | 600 |
| Advanced esthetician | Advanced skin treatments | $50 / $50 | 1,100 |
| Manicurist | Nail services | $50 / $50 | 350 |
| Establishment | The salon or shop itself | $150 / $100 | Not applicable |
| Independent licensee | A stylist who rents a booth and works independently | $150 / $100 | Not applicable |
Out of state licensees may qualify for reciprocity, which carries a statutory maximum of $105. Ask the board how reciprocity works before you assume your current license transfers.
Step 3: Complete Training That Meets the Board's Hour Minimums
The 1,500 hour school minimum for cosmetology under NDCC 43-11-16 is the most important number in this process. It applies to every stylist you plan to license as a cosmetologist. Esthetics requires 600 hours, advanced esthetics requires 1,100 hours and manicuring requires 350 hours. These are school minimums, so enroll in a program that is approved by the board and confirm that its hours will be accepted before you pay tuition.
North Dakota also offers a registered apprenticeship route under NDAC 32-06-01. Apprentice registration costs up to $15, and apprentice trainer registration costs up to $25. Apprenticeship is useful if you already work in a salon and want to train on the job, but confirm with the board how apprenticeship hours are counted and whether they meet the same minimums as school hours.
Step 4: Apply for the Establishment License Before You Open
The salon itself needs an establishment license. Apply through the cosmetology board before you start serving clients. The fee is set in NDCC 43-11-28, with a statutory maximum of $150 for the original license and $100 for each annual renewal. Because the board's current fee schedule may differ from the statute, check the amount on the board's site before you submit payment.
Your salon's establishment license and the individual licenses of your team members are separate. Both must be current. If a stylist's license is not active, that person cannot work in the salon, and the shop cannot put them on the schedule.
Step 5: Set Up Booth Rental the Right Way
If you rent booths to self-employed stylists, each renter must hold an independent licensee license. The statutory maximum is $150 for the original license and $100 for each annual renewal. An independent licensee is not the same as an employee holding an individual cosmetology license, and the way you draft the booth agreement affects how the arrangement is viewed. Have an attorney draft the agreement and a CPA review how you pay and supervise renters.
Under NDCC 43-11-29.1, establishment and independent licenses expire each December 31. An expired license can be reinstated within 12 months of its expiration by paying the late fee and the current renewal fee. After 12 months you must reapply. Calendar the renewal date for each renter so you are not surprised.
Step 6: Add Barbering and Esthetics If You Plan to Offer Them
If you plan to offer men's cuts by a licensed barber, you need a North Dakota barber license. Barbers are regulated under NDCC 43-04-42 by a separate barber board. North Dakota does not have one combined barber and cosmetology board, so you apply to each agency for its own licenses. The barber board's fees are a master barber exam and certificate at $100, renewal at $100, a barbershop license at $50 a year, plus $100 to open a new shop. A mobile barbershop costs $150 initially and $100 to renew.
If you plan to offer facials or skin care, each esthetician needs a North Dakota esthetician license from the cosmetology board, which requires 600 hours of school. Advanced skin treatments require the advanced esthetician license and 1,100 hours.
Step 7: Register for Taxes and Workers' Compensation
Any business that makes taxable sales must hold a sales and use tax permit from the Office of State Tax Commissioner. Apply through ND TAP at tap.tax.nd.gov about 30 days before you open. The state sales tax rate is 5 percent, and city and county taxes may be added. Retail products such as shampoo or styling products you sell at the counter are the sales most salons need to confirm with the Tax Commissioner, since taxability can depend on the type of sale. Check the state's guidance at tax.nd.gov.
North Dakota has no franchise tax. An LLC taxed as a partnership or disregarded entity passes income to its owners, who pay North Dakota individual income tax at 0 percent, 1.95 percent or 2.50 percent depending on bracket. An LLC that elects C corporation treatment pays the corporate income tax instead.
If you have employees, you must carry workers' compensation through WorkForce Safety & Insurance (WSI), because workers' compensation is a state monopoly in North Dakota. Contact WSI before your first payroll.
If you are building out the space yourself or hiring contractors for construction work, pay attention to the contractor rule. When the cost, value or price of a construction job exceeds $4,000, the person doing the work must hold a North Dakota contractor license. Contractor licenses are issued by the Secretary of State and range from $100 for Class D to $450 for Class A, and they renew annually by March 1.
Step 8: Check Local Requirements With Your City
North Dakota counties do not license businesses. Cities license specific activities only, not general business activity. Your city may still require a building permit for the build-out, a certificate of occupancy or zoning approval for a hair salon at your address. Call the city planning or building office before you sign a lease, since a site that does not allow your use can delay the opening for months. The Small Business Development Centers at the University of North Dakota can help you work through local requirements at und.edu/ndsbdc.
Tips and Common Mistakes to Avoid
- Hiring a stylist before the license is active. Employing an unlicensed person is barred under 43-11-13. Get the license number in writing before the first shift.
- Letting a license go late. Licenses expire December 31. Late renewal within one year costs a late fee plus the renewal fee. Renewals that are 1 to 5 years late also require the law and rules exam, and licenses more than 5 years expired require you to reapply under 43-11-29.
- Missing the November 15 LLC annual report. A $50 late fee applies after the statutory due date under NDCC 10-32.1-92. If the LLC is terminated, reinstatement costs $135.
- Using a salon name that does not match the LLC. If customers see one name and the filing shows another, register the trade name before you print signs.
- Naming an agent without permission. Failing to get approval before naming a registered agent can lead to involuntary dissolution.
- Relying on old fee sheets. The board's 2026 schedule replaces older figures. Confirm every fee on the agency page before you budget.
- Making unsupported product claims. The FDA regulates cosmetic labeling and advertising. Avoid promising that a product will repair damage, change the structure of hair or skin, or stop hair loss unless you have solid support and have had a lawyer review the claim.
What to Expect and How Long It May Take
The Secretary of State does not publish a guaranteed turnaround for LLC filings. Its office directs filers to call Business Services at (701) 328-2900 for current timing. Secondary sources commonly cite about 5 business days for FirstStop filings, but that figure does not appear on a state page, so plan for a longer window. Expect the license process to take longer than the entity filing, because it depends on training completion, exam scheduling and application review.
Once the steps above are complete, a properly registered and licensed salon may be able to open its doors and serve clients legally. Results depend on your location, staffing, pricing and marketing, and nothing in this guide promises revenue, client counts or any particular outcome.
Official Resources
- North Dakota Secretary of State: sos.nd.gov
- FirstStop filing portal: firststop.sos.nd.gov
- Office of State Tax Commissioner: tax.nd.gov
- State Board of Cosmetology: ndcosmetology.com
- North Dakota Small Business Development Centers: und.edu/ndsbdc
- SBA North Dakota District: sba.gov/district/north-dakota
When to Talk to a Professional
If you are bringing in investors, renting booths to a large team, buying an existing salon with its client list and lease, or building out a space that requires contractor work, talk with a North Dakota attorney and a CPA before you commit. Those decisions are hard to undo, and this guide cannot account for the facts of your situation.