Barbershop Startup Guide: Licenses & Inspections

How to Start a Barbershop: A Practical, Step-by-Step Guide

Decide if owning a barbershop fits you

Start with a quick gut check. You will run a place that must meet health, safety, and licensing rules before day one. You will also spend time on leases, permits, and inspections. If that sounds energizing, you are in the right place.

Next, take a brief inside look at daily realities. A barbershop is a customer-facing space with steady foot traffic, sanitation routines, chemical safety needs, and strict station standards. If you plan to employ barbers, expect hiring, payroll, and training steps before opening.

If you need a broader foundation, skim these primers and come back ready to execute: points to consider before starting a business, an inside look at the business you’re considering, and the basic business startup steps.

Research your state and local rules

A barbershop is regulated at the state level for professional licensing and sanitation, and at the local level for zoning and occupancy. Most states license both the shop and each barber. Many require a pre-opening inspection and posting of licenses in public view.

Before you evaluate locations, confirm that a barbershop is an allowed use at the address. Ask about any change-of-use and whether a Certificate of Occupancy is required after build-out. This avoids surprises and keeps your schedule realistic.

Rules vary by jurisdiction. How to verify locally: State Board of Barbering/Cosmetology portal — search “barber shop (establishment) license,” “barber license,” and “inspection”; City/County Planning or Building portal — path “Business → Zoning/Permits → Certificate of Occupancy.”

Shape your barbershop model

Choose what you will offer on day one. Core services may include haircuts, shaves, beard trims, and kids’ cuts. Decide whether you will sell retail products, like pomades and beard oils. Retail triggers tax registration and labeling considerations when you package items.

Next, choose your shop format. Will you open a single-chair studio, a small neighborhood shop, or a larger space with multiple stations? Space needs drive plumbing, electrical, and ventilation decisions, and those drive permit timing.

If you are still weighing paths, review these guides to sharpen your approach: understand supply and demand, set your pricing, and owning a franchise if a franchise model is on the table.

Write a simple business plan

Write a short plan that you can hand to a lender, a landlord, or a partner. Keep it focused: services, target market, startup budget, timeline, and key risks. Add a short operations note on sanitation, inspections, and licensing so readers see you know the rules.

Include a location plan. Note your zoning status, permit needs, and inspection sequence. State when you expect to request the pre-opening inspection from the state board and when the city will issue the Certificate of Occupancy.

For structure and examples, use this walkthrough: write a business plan and consider a brief mission statement to guide choices.

Build your startup budget and funding plan

List the items you must have to open. Include lease deposits, design and build-out, permits, barber chairs, sinks and plumbing, mirrors, lighting, reception, point-of-sale, towels and capes, disinfectants, and initial retail inventory if you will sell products.

Then outline your funding path. Some owners self-fund; others use bank financing or community lenders. Lenders look for a clear plan, proof you understand licensing steps, and evidence you can pass inspections and legally open.

• Document quotes for build-out, fixtures, and permits.
• Show a simple 12-month cash need: rent, utilities, payroll, supplies.
• Prepare formation documents and your IRS EIN letter for the bank.
• Line up insurance quotes (see the insurance section) before lease signing.

Choose your legal structure and business name

Pick a structure that fits your risk and tax picture. Many small shops form an LLC, while others start as sole proprietors. If you form an entity, you will file with your state’s business filing office. If you trade under a name different from your legal name, you will file a DBA/assumed name as your state or county requires.

Search name availability before you design a logo or buy a domain. Keep records of your filing approvals so you can open your bank account and complete tax registrations without delays.

Requirements vary by jurisdiction. How to verify locally: Secretary of State portal — path “Business → Register → LLC/Corporation” and “Assumed Name/DBA”; if your state uses county-level DBAs, check the County Clerk site under “Business/Assumed Names.”

Get your federal identifiers and employer basics

Apply for an Employer Identification Number with the IRS. You can apply online or by mailing or faxing Form SS-4. Keep your EIN confirmation letter with your formation documents. You will use it for banking and payroll tax accounts.

If you will hire, complete Form I-9 for each new employee and keep it on file. E-Verify is optional unless required by your state or a contract. Post the federal labor notices that apply to your shop in a spot where employees can read them.

• Apply for an EIN and save the confirmation letter.
• Prepare I-9 onboarding steps for day one.
• Download and post required federal workplace posters.
• Bookmark IRS Publication 15 for payroll tax rules.

Register for state taxes and unemployment

If you will sell retail products, register for a state sales/use tax permit. If you will have employees, also register for employer withholding and state unemployment insurance (SUI). Some states tax certain grooming services; check your state’s definitions during registration.

Register early so you can collect and remit taxes from the first sale and set up payroll with proper withholding. Keep your account numbers in your opening checklist alongside your shop license and city license.

Requirements vary by jurisdiction. How to verify locally: State Department of Revenue/Taxation portal — path “Business → Register → Sales tax / seller’s permit; Withholding”; State unemployment insurance agency — path “Employers → Register.”

Confirm workers’ compensation and related state insurance rules

States often require workers’ compensation coverage if you have employees. The trigger may be your first employee or another headcount threshold. Your lender, landlord, or inspector may ask for proof during the build-out phase or before the Certificate of Occupancy.

Ask your agent to explain how your policy works with your payroll and indicate who is covered. Keep the certificate of insurance in your inspection folder with your licenses and permits.

Requirements vary by jurisdiction. How to verify locally: State workers’ compensation agency directory — search “Employers” and “Coverage requirements.”

Secure your professional and shop licenses

Most states require both an individual barber license and a barbershop (establishment) license. Many require a pre-opening inspection by the state board. Inspectors check sanitation setups, station spacing, hot water, disinfectants, and posting of licenses and rules.

Submit complete applications and schedule the inspection after your build-out is ready. Display all licenses where customers can see them. If you rent chairs to licensed barbers, keep copies of their licenses on file and posted as state rules require.

• Apply for individual barber licenses for all barbers who will work day one.
• Apply for the barbershop/establishment license and request inspection.
• Set up your sanitation station, kit storage, and tool disinfection area.
• Post all licenses at the front or at each station as required.

Requirements vary by jurisdiction. How to verify locally: State Board of Barbering/Cosmetology portal — search “barber shop license application,” “inspection checklist,” and “sanitation rules.”

Handle city licensing, zoning, and occupancy

Many cities or counties require a general business license. Most require a Certificate of Occupancy before opening, especially if you made tenant improvements. The CO usually follows final inspections for building, electrical, plumbing, and sometimes fire/life safety.

Submit your business license application with your entity formation details and your EIN. Confirm whether your city will accept the application before your CO or only after final inspections. Keep dates and approvals in your startup file so you can schedule a firm opening.

Requirements vary by jurisdiction. How to verify locally: City/County business licensing portal — search “business license,” “zoning,” and “certificate of occupancy.”

Plan your lease and build-out with permits in mind

Before you sign a lease, walk through the permit steps. A barbershop needs plumbing for sinks, adequate hot water, code-compliant electrical, and often new lighting and ventilation. Tenant improvements usually require building permits and inspections.

Ask your landlord for prior floor plans and permits. Talk to a contractor familiar with local code and salon layouts. Build your schedule around permit review, rough inspections, and final inspections. Keep your state board pre-opening inspection near the end, after local finals but before the grand opening.

Requirements vary by jurisdiction. How to verify locally: City/County Building Department portal — path “Permits → Commercial → Tenant Improvement.”

Design for accessibility and customer flow

Make the shop welcoming and accessible. Provide an accessible route from the entrance to the service area, space to maneuver at the station, and an accessible restroom where required. Check counter heights and door hardware during design, not after construction.

Plan the customer flow from arrival to payment. Place reception where you can greet each client, keep walkways clear, and set storage so clean and soiled items never mix. Note any tactile or visual markers that help all guests move safely.

Federal accessibility rules apply to places open to the public. If you are unsure how to meet them in your space, ask your contractor or designer to review the standards with you before submitting plans.

Set up safety, sanitation, and chemical handling

Create a simple safety file and keep it at the front desk or office. Include a written Hazard Communication program, Safety Data Sheets for each chemical you use, your labeling approach, and the employee training notes. Use only EPA-registered disinfectants and follow the label directions for contact times and surfaces.

If your staff could have occupational exposure to blood (for example, nicks or cuts during shaves), set up an exposure control plan and follow universal precautions. Stock and maintain first aid supplies, disposable gloves, and sharps disposal if required by your procedures.

• Write a one-page Hazard Communication plan and keep SDSs on site.
• Train staff on chemical labels, handling, and disinfectant use.
• Use EPA-registered disinfectants and observe required contact times.
• Post safety rules and keep a signed training log.

Build your brand assets: name, logo, and web presence

Once your name is cleared, design a simple, readable logo that fits exterior signage and business cards. Keep the look clean so it scales from a door decal to a price card. If you plan to file a DBA, do that before you order graphics.

Register a domain and publish a basic website with location, services, and pricing. Add hours, parking tips, and a booking link. Use the same name, address, and phone number across your website, cards, and signage to avoid confusion.

For quick help, review these focused guides: build a business website, corporate identity package, and business cards.

Plan signage and get approvals

Exterior signs often need a sign permit. Many cities regulate size, lighting, and placement. Your landlord may also require a specific style or location on a shared facade. Get written approval before fabrication to avoid rework.

Design your window and door signage around visibility, accessibility, and required postings. Keep hours and phone number legible from the sidewalk. Confirm whether the city has rules for temporary banners or sidewalk signs if you plan to use them for opening week.

Requirements vary by jurisdiction. How to verify locally: City Planning/Building portal — search “sign permit” and follow the submittal checklist for commercial signs.

Set up your office, point-of-sale, and records

Create a small back-office system for the essentials. You will need a bank account, a way to track sales tax when relevant, and a simple file for licenses, permits, inspections, tax accounts, and insurance certificates. Keep digital copies and a printed binder on site.

Choose a point-of-sale that issues clear receipts and supports gratuities. If you sell retail, set up basic inventory tracking and barcode labels. Keep separate storage for clean towels and soiled linens and document your laundry process in your sanitation plan.

• Open a business bank account with your entity approval and EIN letter.
• Activate POS and test receipt, tip, and refund functions.
• Create a licenses/permits binder for inspectors and landlords.
• Prepare a retail inventory list if you will sell products.

Line up suppliers and initial inventory

Set accounts with barber supply distributors for tools, blades, capes, neck strips, disinfectants, towels, and cleaning products. If you sell retail, open wholesale accounts for the brands you will carry. Confirm lead times so your first order arrives before inspection.

Store chemicals and disinfectants per the label. Keep SDSs for each product in your safety file. If you plan to package or label your own cosmetics, learn the labeling rules before printing and keep samples for your records.

Choose your insurance package

Talk to a licensed agent about policies that fit a barbershop. Common needs include general liability, property coverage for your improvements and equipment, and workers’ compensation if you have employees. Landlords often require proof of general liability with the landlord named as additional insured.

Ask for certificates of insurance early. You may need them for the lease, for final inspections, and for your state shop license. Keep the certificates in your binder with your permits and licenses.

If you are new to insurance, this primer helps you frame the conversation with your agent: business insurance.

Prepare to hire and onboard

If you will employ barbers, set a simple hiring plan. Verify active licenses, schedule orientation on sanitation and safety, and complete new-hire reporting to your state directory. Keep I-9 forms and any state payroll forms in a secure file.

Explain your tools and chemical handling, your disinfection routine, and how you handle accidental cuts. Review station setup, handwashing, and cleaning between clients. Post your policies where staff can see them, and keep a signed training record.

Requirements vary by jurisdiction. How to verify locally: Administration for Children & Families (HHS) — find your state new-hire reporting directory and follow the “Report a New Hire” instructions; State labor or revenue portal — search “withholding registration” if not completed earlier.

Check your tax, payroll, and poster obligations

Set up payroll so tax withholding is correct from the first paycheck. Confirm your federal tax deposit schedule and file the right periodic returns. Post required federal workplace notices where employees can read them without obstruction.

Keep your federal and state account numbers handy in case an inspector or lender requests them. Save credentials for each portal in a secure manager so you can file on time and update addresses when you move or renew.

• Review IRS Publication 15 for withholding, deposits, and returns.
• Post current federal labor posters in a visible location.
• Keep your state sales tax and withholding account IDs in your binder.
• Test payroll with a mock run before the first pay date.

Confirm music, TV, and media use in the shop

If you plan to play radio, streaming services, or TV for customers, check whether you need public performance licensing. This depends on how you use music in the shop and the type of service. Do not wait until after opening; resolve it with your provider or the relevant organizations before launch.

Keep any licenses or confirmations on file with your other permits. If you switch services later, revisit the rules so you remain in compliance.

Create your opening-day identity set

Print only what you need now and keep it simple. Use the same logo, colors, and contact details on your core items so customers can recognize you. Keep your tone clear and direct so prices and policies are easy to read.

Start with cards that list your address, booking link, and hours. Add a basic price card for the counter and the website. If you offer retail, set a small display near the checkout that does not clog the customer flow.

• Design business cards and price cards using your approved name and logo.
• Publish a one-page website with location, services, and booking link.
• Place door and window lettering with hours and phone number.

Final compliance and pre-opening inspection

As build-out wraps up, book your final city inspections. After finals, request your Certificate of Occupancy from the city or county. When the space is clean and fully set up, schedule your state board pre-opening inspection if required. Keep your disinfectants, SDSs, licenses, and posters in place before the inspector arrives.

Test your POS, phone, and booking link. Walk through the customer journey from the front door to the chair and back to the counter. Fix any trip hazards or tight turns. Check hot water, handwashing, and towel storage. Do a mock day with friends or family to see what you missed.

• Confirm city finals and obtain your Certificate of Occupancy.
• Schedule the state board pre-opening inspection.
• Post licenses and federal labor notices in visible locations.
• Stage sanitation supplies, SDSs, and your written safety program.

Local steps vary. How to verify locally: City/County Building and Business Licensing portals — follow “Final inspections → Certificate of Occupancy”; State board portal — search “shop inspection” and “license posting.”

Open with a controlled soft launch

Begin with a soft opening to test your flow. Take a few appointments per hour, watch timing between services, and check that staff follow your sanitation routine. Adjust schedules and stock based on what you see, then plan your public opening.

After the soft launch, complete any small fixes and confirm you have met all license, permit, tax, and posting requirements. Keep your binder updated so future renewals and inspections are simple.

If you want a quick cross-check, compare your plan against this new business checklist and scan these common startup mistakes to avoid before you announce your grand opening.

Keep your compliance file current

Create a monthly reminder to review licenses, tax accounts, insurance certificates, and safety documents. Add any new chemical SDSs when you change products. If you change your layout, update your plans and confirm you do not need a new permit.

Beneficial Ownership Information reporting is overseen by FinCEN. Domestic companies are currently exempt. Check the FinCEN site for the current status before you form, acquire, or restructure a company.

If your shop expands, revisit hiring rules and posters, insurance limits, and your sanitation plan so your growth stays in line with your legal obligations.

101 Tips for Running Your Barbershop

Use this list to plan, launch, and run a professional barbershop with confidence. Each tip tells you what to do and why it matters, using plain language. Focus on legal compliance, safe service, and steady growth. Work the list from start to finish or jump to the sections that fit your next move.

What to Do Before Starting

1. Confirm your state requires both a barbershop (establishment) license and individual barber licenses, then map the application and inspection steps in your timeline.
2. Call your city or county to verify zoning allows a barbershop at your chosen address and whether a new Certificate of Occupancy is needed after build-out.
3. Walk the space with a contractor to confirm plumbing capacity for shampoo bowls, hot water supply, electrical outlets at stations, and ventilation before you sign a lease.
4. Choose a business structure that fits your risk and tax needs, then keep formation approval and operating agreement in a binder for banks and inspectors.
5. Apply for an IRS EIN so you can open a business bank account, set up payroll, and register for state tax accounts without delay.
6. Price your core services by timing each cut and shave, then set menu prices that cover labor, rent, supplies, and taxes with a modest profit target.
7. Budget for one-time costs (permits, build-out, equipment) and for at least three months of fixed expenses so you can open without cash stress.
8. Obtain general liability and property coverage quotes early; many landlords require proof of insurance before giving possession of the unit.
9. Plan ADA access from door to station to restroom so your drawings meet accessibility rules and you avoid costly changes after inspections.
10. Decide if you will sell retail products; if yes, plan for a sales tax permit and set a small, high-turn assortment you can actually keep in stock.
11. Create a pre-opening inspection checklist for sanitation, license posting, and safety so you are ready when the state board arrives.
12. Note that many steps vary by jurisdiction; ask the State Board of Barbering/Cosmetology about shop licensing and the city building office about permits and occupancy.

What Successful Barbershop Owners Do

13. Track station utilization weekly and add a chair only when current stations are booked at peak hours for several weeks in a row.
14. Pre-book clients before they leave; a steady rebook rate stabilizes revenue and reduces no-shows.
15. Keep a visible sanitation routine between clients; clean habits build trust and pass inspections.
16. Meet vendors quarterly to review blade, cape, and disinfectant costs and switch brands when quality and lead times improve.
17. Review cash flow each Monday and schedule bill payments on known deposit days to avoid fees.
18. Train the team on consistent consultations; consistent outcomes drive referrals and reduce redos.
19. Maintain a compliance calendar with license renewals, poster updates, and inspection windows so nothing lapses.
20. Photograph before/after work with client consent and build a portfolio that represents your actual services.
21. Negotiate multi-year leases with improvement allowances tied to permit approvals to reduce build-out risk.
22. Keep a short set of written SOPs and revisit them after every surprise, turning mistakes into better systems.

Running the Business (Operations, Staffing, SOPs)

23. Write opening and closing checklists so cash, towels, chemicals, and trash are handled the same way every day.
24. Set a tool disinfection SOP using EPA-registered products and manufacturer contact times to protect clients and pass state board checks.
25. Keep Safety Data Sheets for every chemical in a labeled binder and train staff on where to find them during service.
26. Create a simple Hazard Communication plan that covers labeling, storage, and spill steps so new hires learn fast.
27. Prepare an exposure control plan for nicks and cuts, including gloves, disposal, and surface disinfection steps.
28. Install adequate hot water capacity for back-to-back services and test recovery time before opening day.
29. Standardize station layout: clipper hooks, disinfectant jar, clean cape drawer, and soiled bin to the side for fast turnover.
30. Adopt a laundry routine with separate bins for clean and soiled linens and document wash temperatures and detergents.
31. Set cash-handling rules: drop limits in the till, counted drawer transfers, and end-of-day reconciliation with two people present.
32. Use a POS that supports tips, tax calculation, and basic inventory so you can track retail margins by item.
33. Define roles for reception, floor lead, and closing lead so accountability is clear on each shift.
34. Create a training path for new barbers that covers consultation, timing, sanitation, and redo policy before independent booking.
35. Verify professional licenses at hire and keep copies on file and posted as your state requires.
36. Register as an employer, set up payroll withholding, and calendar filing due dates to avoid penalties.
37. Obtain workers’ compensation if required in your state once you hire your first employee.
38. Schedule periodic mock inspections to check license posting, SDS access, sanitation timing, and expired products.
39. Maintain a repair log for chairs, clippers, and water heaters and budget for preventative maintenance.
40. Document a severe weather or power outage plan so you can secure equipment and contact clients quickly.

What to Know About the Industry (Rules, Seasons, Supply, Risks)

41. Expect service spikes around holidays, graduations, and back-to-school; plan staffing and inventory for those peaks.
42. Some states tax certain grooming services, while others tax only retail products; verify how your state treats your menu.
43. Supply chains for blades and disinfectants can tighten; keep a two-order buffer for essentials you cannot substitute.
44. Retail can lift average tickets, but only if you restock bestsellers and train staff to recommend by hair type and use.
45. Inspections check sanitation, license posting, and water temperature; rehearse the walkthrough so the team is calm.
46. Chair rental and employment rules differ by state; classify workers correctly to avoid tax and wage issues.
47. Clipper maintenance affects cut quality and skin safety; set a sharpening and replacement cadence.
48. Insurance policies often exclude wear-and-tear; log incidents and keep service logs for claims support.
49. Music and TV in the shop may require public performance licensing; confirm your setup before opening.
50. Local wastewater rules can affect how you handle mop water and chemicals; ask your public works department before you dump.

Marketing (Local, Digital, Offers, Community)

51. Claim and complete your key business listings with consistent name, address, and phone so customers can find you.
52. Use clear exterior signage and window lettering with hours and phone number visible from the sidewalk.
53. Publish a one-page website with services, prices, parking tips, and booking link so visitors can act in one minute.
54. Post three strong portfolio photos per core service to set expectations and reduce mismatched requests.
55. Offer a simple new-client incentive tied to a second booking to encourage return visits rather than one-time deals.
56. Partner with nearby businesses for cross-referrals, such as men’s boutiques or gyms whose clients match your target.
57. Collect email or SMS opt-ins at checkout and send appointment reminders and seasonal hours notices.
58. Create a referral card with space for the referrer’s name and a small thank-you to track word-of-mouth.
59. Join neighborhood associations and attend monthly meetings to learn about street closures and events early.
60. Ask for reviews after successful services and respond to every review with short, polite replies.
61. Offer “student cut weeks” or “first responder days” that align with your brand and capacity.
62. Use simple window posters for holiday hours and limited offers so passersby know what’s new.
63. Track marketing by source in your POS notes and shift budget toward channels that book repeat clients.
64. Shoot short, clean videos of common services to explain what to expect, timing, and aftercare.

Dealing with Customers (Trust, Education, Retention)

65. Start each service with a two-minute consultation that covers style, length, and maintenance so results match expectations.
66. Show clients how to describe guard lengths and texture so future visits are faster and more accurate.
67. Offer realistic timing and price estimates before you begin; surprises damage trust.
68. Use a visible waitlist with accurate time blocks; honesty about waits reduces walk-outs.
69. Teach simple at-home upkeep and product use that supports the cut they chose.
70. Note client preferences in the POS, including allergies and sensitivities, to personalize the next visit.
71. Handle nicks and irritations with calm, clear steps and document the incident in your log.
72. Give a clear aftercare tip when a client changes styles so they know how to keep the look.
73. Invite clients to pre-book when they are most happy—with the mirror in hand—so retention rises.
74. Thank clients who refer friends and track referrals so you can reward them consistently.

Customer Service (Policies, Guarantees, Feedback)

75. Post service prices and key policies where clients can read them before they sit.
76. Offer a simple redo policy within a short window for reasonable adjustments to build goodwill.
77. Publish a no-show and late policy that respects your time but allows one courtesy waiver for first-time clients.
78. Provide accessible seating and assistance as needed and train staff on respectful, discreet support.
79. Set a standard for greeting and checkout so every client feels seen and not rushed.
80. Use short satisfaction surveys quarterly and act on themes, not one-offs.
81. Escalate complaints to a manager immediately and aim to resolve before the client leaves.
82. Document compliments and share them in team meetings to reinforce what works.

Sustainability (Waste, Sourcing, Long-Term)

83. Use EPA-registered disinfectants efficiently by mixing only what you need and following label contact times.
84. Replace single-use plastics where possible with durable tools and washable linens to cut waste and cost.
85. Install LED lighting and occupancy sensors to reduce energy use without hurting visibility.
86. Wash full towel loads at the proper temperature and use high-spin cycles to shorten dryer time.
87. Buy in bulk for high-turn items and split cases with a nearby shop to avoid overstock and waste.
88. Store chemicals away from heat and sunlight so they last to their shelf date and remain effective.

Staying Informed (Trends, Sources, Cadence)

89. Check your state board website monthly for rule updates, inspection schedules, and license renewals.
90. Review OSHA updates for salon-relevant safety topics and refresh your training notes as rules evolve.
91. Use SBA and IRS news pages each quarter to spot tax and small-business changes that alter filings or benefits.
92. Follow CDC guidance for hand hygiene and illness prevention to keep staff and clients safer.
93. Keep a one-page legal change log so you can brief the team quickly when requirements shift.

Adapting to Change (Seasonality, Shocks, Competition, Tech)

94. Staff up for back-to-school and holiday peaks and reduce hours during predictable dips to protect margins.
95. Create a quick pivot plan for health advisories that covers spacing, masks if needed, and enhanced cleaning.
96. Monitor new competitors’ menus and adjust your own only when data shows demand for the change.
97. Add online booking features clients request most—waitlist, reminders, or deposits—to cut no-shows.
98. Test a new service on slow days with time trials and feedback before adding it to the price card.

What Not to Do

99. Do not open without required licenses, inspections, and posted notices; fines and closures are more costly than waiting a week.
100. Do not skip SDSs or label checks for chemicals; ignorance is not a defense during an inspection or incident.
101. Do not rely on cash alone; a modern POS improves tips, reduces errors, and supports taxes and renewals.

Sources: U.S. Small Business Administration, IRS, U.S. Department of Labor, OSHA, EPA, ADA, CDC, USCIS, U.S. Copyright Office, USA.gov