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 $14,700 and $245,000, with a median estimate of $73,500. Minnesota’s cost of living is 2% 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: March 2026

Hair Salon startup costs illustration — typical equipment and setup

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

Low

$14,700

Medium

$73,500

High

$245,000

National average: $15,000 – $250,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Hair Salon in Minnesota

Budget:

Salon Space Lease & Build-Out

$34,300

Salon Equipment & Furniture

$19,600

Professional Hair Care Products

$7,840

Salon Software & POS

$1,960

Cosmetology Licenses & Business Permits

$1,470

Insurance

$2,450

Marketing & Grand Opening

$4,900

Working Capital Reserve

$14,700

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$87,220

Monthly Costs

First Year Total

$87,220

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Salon Space Lease & Build-Out	$7,840	$34,300	$117,600	Each shampoo bowl requires plumbing installation ($500-$2,000 each). A 6-chair salon needs $30,000-$80,000 in build-out.
Salon Equipment & Furniture	$4,900	$19,600	$58,800	Professional styling chairs cost $300-$800 each. A complete 6-station setup runs $3,000-$8,000 in chairs alone.
Professional Hair Care Products	$1,960	$7,840	$24,500	Retail product sales can add 15-25% to total revenue. Stock 2-3 months of inventory at opening.
Salon Software & POS	$490	$1,960	$5,880	Vagaro, Fresha, and Square Appointments are popular for salons. Budget $50-$200/month for software.
Cosmetology Licenses & Business Permits	$294	$1,470	$4,900	Cosmetology establishment licenses cost $50-$500. Each employed stylist must hold a state cosmetology license.
Insurance	$784	$2,450	$6,860	Professional liability for salons covers chemical burns, allergic reactions, and service errors. Budget $100-$300/month.
Marketing & Grand Opening	$980	$4,900	$14,700	Before/after transformation photos on Instagram are the most powerful salon marketing tool. Invest in photography.
Working Capital Reserve	$4,900	$14,700	$49,000	Booth rental salons have lower risk — renters cover their own expenses. Commission-based employees require more capital.
Total Startup Cost	$22,148	$87,220	$282,240	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: $100-$800 • Renewal: Annual
Residential Building Contractor License — Minnesota Department of Labor and Industry
Cost: $150-$500 • Renewal: Annual
Cosmetology Salon License — Minnesota Department of Labor and Industry — Board of Cosmetologist Examiners
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — Minnesota Department of Commerce — Real Estate
Cost: $150-$400 • Renewal: Annual
Child Care Center License — Minnesota Department of Human Services — Child Care Licensing
Cost: $50-$200 • Renewal: Annual
On-Sale Intoxicating Liquor License — Minnesota Department of Public Safety — Alcohol and Gambling Enforcement or Local Authority
Cost: $300-$3,000 • Renewal: Annual
Cannabis Retailer License — Minnesota Office of Cannabis Management
Cost: $2,500-$10,000 • Renewal: Annual
Pesticide Business License — Minnesota Department of Agriculture
Cost: $50-$200 • 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 close to the national average for Hair Salon startup costs, with a cost-of-living index of 98. Compared to neighboring Wisconsin ($71,250 median startup cost), Minnesota has higher costs for a Hair Salon.

State	Est. Cost	LLC Fee
Minnesota (current)	$73,500	$155
Wisconsin	$71,250	$130
Iowa	$68,250	$50
South Dakota	$72,750	$150
North Dakota	$74,250	$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 are expensive
3
Not building a retail sales program — product sales at 50% markup are high-margin revenue
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 risk

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 ($5,000–$25,000)
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 ($1,500–$3,500/year)
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 costs $15,000 to $250,000 depending on size and model. A small 2-3 chair salon in a modest space can open for $15,000-$40,000. A full 6-10 chair salon in a premium location with high-end finishes typically costs $75,000-$200,000. A large commission-based salon with 15+ stations can exceed $250,000.

Booth rental salons ($300-$800/week per chair) have lower risk — stylists rent chairs and keep all their earnings. Commission salons (40-60% to stylists) require building a client base to fill chairs. Booth rental provides predictable income regardless of business performance; commission salons have higher upside when fully booked.

Hair salon owners earn $30,000-$100,000+ annually. A small 4-chair booth rental salon charging $400/week per station grosses $83,200/year in rent alone, with the owner keeping most of it. A commission salon with 8 stylists averaging $3,000/week in production grosses $1.25M/year; owner takes 10-15% net after expenses.

Required: state cosmetology establishment license ($50-$500), 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.