How Much Does It Cost to Start a Hair Salon in Minnesota?

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Starting a Hair Salon in Minnesota typically costs between $14,100 and $235,000, with a median estimate of $70,500. Minnesota’s cost of living is 6% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Minnesota costs $155 to file. Most hair salon businesses take 2-5 months to launch.

Last updated: May 2026

Hair Salon startup costs illustration — typical equipment and setup

How Much Does It Cost to Start a Hair Salon in Minnesota?

Low

$14,100

Medium

$70,500

High

$235,000

National average: $15,000 – $250,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Hair Salon in Minnesota

Budget:

Salon Space Lease & Build-Out

$32,900

Salon Equipment & Furniture

$18,800

Professional Hair Care Products

$7,520

Salon Software & POS

$1,880

Cosmetology Licenses & Business Permits

$1,410

Insurance

$2,350

Marketing & Grand Opening

$4,700

Working Capital Reserve

$14,100

Options

Include 3 months working capital (+$33,840)

Employees:Just Me1–34–10

Startup Costs

$83,660

Monthly Costs

$11,280

First Year Total

$219,020

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Salon Space Lease & Build-Out	$7,520	$32,900	$112,800	Each shampoo bowl requires plumbing rough-in, which is itself a meaningful per-bowl cost. A 6-chair salon's full build-out — plumbing, electrical, finishes — runs into the high five figures.
Salon Equipment & Furniture	$4,700	$18,800	$56,400	Professional styling chairs are a per-station capital purchase. A complete 6-station setup adds up across chairs, mirrors, shampoo bowls, and dryer chairs to a meaningful four-to-low-five-figure investment in chairs alone.
Professional Hair Care Products	$1,880	$7,520	$23,500	Retail product sales meaningfully expand revenue per visit. Stock 2-3 months of inventory at opening.
Salon Software & POS	$470	$1,880	$5,640	Vagaro, Fresha, and Square Appointments are popular salon platforms billed on monthly subscriptions that scale with stylist count.
Cosmetology Licenses & Business Permits	$282	$1,410	$4,700	Cosmetology establishment licenses are a low three-figure cost in most states. Each employed stylist must hold an individual state cosmetology license.
Insurance	$752	$2,350	$6,580	Professional liability for salons covers chemical burns, allergic reactions, and service errors. Premiums scale with stylist count and chemical-service mix.
Marketing & Grand Opening	$940	$4,700	$14,100	Before/after transformation photos on Instagram are the most powerful salon marketing tool. Invest in photography.
Working Capital Reserve	$4,700	$14,100	$47,000	Booth rental salons have lower risk — renters cover their own expenses. Commission-based employees require more capital.
Total Startup Cost	$21,244	$83,660	$270,720	Required costs only

Licenses & Permits in Minnesota

General Business License

Minnesota does not have a statewide general business license. Businesses must register their entity with the Minnesota Secretary of State and register with the Minnesota Department of Revenue for sales and use tax and withholding tax purposes. Some Minnesota cities require local business licenses, though this varies by municipality. Minneapolis and Saint Paul have their own business licensing requirements. Many business types are regulated through specific licensing programs at the state level.

Industry-Specific Licenses

Food Handler License — Minnesota Department of Agriculture or Local Health Department
Cost: Varies — contact agency • Renewal: Annual
Residential Building Contractor License — Minnesota Department of Labor and Industry
Cost: Varies — contact agency • Renewal: Annual
Cosmetology Salon License — Minnesota Department of Labor and Industry — Board of Cosmetologist Examiners
Cost: Varies — contact agency • Renewal: Annual
Real Estate Broker License — Minnesota Department of Commerce — Real Estate
Cost: Varies — contact agency • Renewal: Annual
Child Care Center License — Minnesota Department of Human Services — Child Care Licensing
Cost: Varies — contact agency • Renewal: Annual
On-Sale Intoxicating Liquor License — Minnesota Department of Public Safety — Alcohol and Gambling Enforcement or Local Authority
Cost: Varies — contact agency • Renewal: Annual
Cannabis Retailer License — Minnesota Office of Cannabis Management
Cost: Varies — contact agency • Renewal: Annual
Pesticide Business License — Minnesota Department of Agriculture
Cost: Varies — contact agency • Renewal: Annual

Home-Based Business Rules

Minnesota municipalities regulate home-based businesses through local zoning ordinances. Minneapolis allows home occupations in all residential zones with restrictions on customer visits, signage, and deliveries. Saint Paul has similar home occupation rules. Minnesota's rural areas are generally very accommodating of home-based businesses. The state's Cottage Food Law specifically supports home-based food production and direct consumer sales.

Resources

Monthly Operating Costs

After launch, plan for these ongoing monthly expenses for your Hair Salon:

Low

$4,000/mo

Medium

$12,000/mo

High

$35,000/mo

Revenue Potential

Annual Revenue Range

$80,000 – $700,000 (annual)

Profit Margins

8-20%

Break-Even Timeline

12-24 months

How Minnesota Compares to Neighboring States

Minnesota is one of the more affordable states for launching a Hair Salon, with a cost-of-living index of 93.6 (national average is 100). Compared to neighboring Wisconsin ($68,250 median startup cost), Minnesota has higher costs for a Hair Salon.

State	Est. Cost	LLC Fee
Minnesota (current)	$70,500	$155
Wisconsin	$68,250	$130
Iowa	$62,250	$50
South Dakota	$62,250	$150
North Dakota	$61,500	$135

Common Mistakes to Avoid

1
Choosing a booth rental model without calculating whether booth fees cover overhead costs
2
Underestimating build-out costs — plumbing for shampoo bowls and electrical upgrades are expensive
3
Not building a retail sales program — product sales carry strong markups and meaningfully expand revenue per visit
4
Hiring stylists before building a client base — staff idle time is expensive
5
Not having stylist non-solicitation agreements — stylists leaving and taking clients is the biggest single risk in the model

Next Steps to Launch Your Hair Salon

1
Obtain your Minnesota cosmetology license from the Minnesota Board of Cosmetology before opening
2
Register your Hair Salon as an LLC with the Minnesota Secretary of State ($155 filing fee)
3
Pass the Minnesota health and safety inspection for your salon — includes sanitation, ventilation, and plumbing
4
Sign a salon suite lease or studio lease and outfit your stations with styling chairs, mirrors, and shampoo bowls
5
Establish wholesale hair product accounts with your color, shampoo, and treatment distributors for professional pricing
6
Get professional liability and general liability insurance for salon operations; premiums scale with stylist count and chemical-service mix
7
Set up your salon booking software (StyleSeat, Vagaro, or GlossGenius) and Google Business Profile
8
Hire licensed cosmetologists — verify all stylists hold a current Minnesota cosmetology license before their first client

Frequently Asked Questions

Opening a hair salon spans a wide range driven by chair count, location quality, and finish level. A small 2-3 chair salon in a modest space can open in the low five figures. A full 6-10 chair salon in a premium location with high-end finishes requires meaningfully more — well into the six figures. A large commission-based salon with 15+ stations requires materially more capital again. Use the calculator on this page to model your specific scenario.

Booth rental salons (stylists pay a weekly rent for their chair and keep all earnings) have lower risk — chair rent is predictable revenue regardless of how busy each stylist is. Commission salons (a percentage split between stylist and house) require building a client base to fill chairs but have higher upside when fully booked.

Owner take-home varies materially with model and station count. A small chair-rental salon with several stations grosses meaningful annual rent income with the owner keeping the bulk of it after overhead. A commission salon with multiple stylists at full production grosses substantially more per year, with the owner's net depending on the commission split and overhead discipline.

Required: state cosmetology establishment license, business license, health department inspection clearance, and a cosmetology license for every licensed service provider. Some states require a separate salon owner license. All chemical services (color, perms) require licensed cosmetologists.

Attract stylists by offering competitive booth rental rates or commission splits, a professional work environment, strong retail product selection, a built-in client marketing program, flexible schedules, and education opportunities. Building relationships with local cosmetology schools for new-graduate recruitment is also effective.

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Start a Hair Salon in Other States

See the national overview for Hair Salon or browse all businesses you can start in Minnesota.