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

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Starting a Hair Salon in Mississippi typically costs between $12,750 and $212,500, with a median estimate of $63,750. Mississippi’s cost of living is 15% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Mississippi costs $50 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 Mississippi?

Low

$12,750

Medium

$63,750

High

$212,500

National average: $15,000 – $250,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Hair Salon in Mississippi

Budget:

Salon Space Lease & Build-Out

$29,750

Salon Equipment & Furniture

$17,000

Professional Hair Care Products

$6,800

Salon Software & POS

$1,700

Cosmetology Licenses & Business Permits

$1,275

Insurance

$2,125

Marketing & Grand Opening

$4,250

Working Capital Reserve

$12,750

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$75,650

Monthly Costs

First Year Total

$75,650

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Salon Space Lease & Build-Out	$6,800	$29,750	$102,000	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	$4,250	$17,000	$51,000	Professional styling chairs cost $300-$800 each. A complete 6-station setup runs $3,000-$8,000 in chairs alone.
Professional Hair Care Products	$1,700	$6,800	$21,250	Retail product sales can add 15-25% to total revenue. Stock 2-3 months of inventory at opening.
Salon Software & POS	$425	$1,700	$5,100	Vagaro, Fresha, and Square Appointments are popular for salons. Budget $50-$200/month for software.
Cosmetology Licenses & Business Permits	$255	$1,275	$4,250	Cosmetology establishment licenses cost $50-$500. Each employed stylist must hold a state cosmetology license.
Insurance	$680	$2,125	$5,950	Professional liability for salons covers chemical burns, allergic reactions, and service errors. Budget $100-$300/month.
Marketing & Grand Opening	$850	$4,250	$12,750	Before/after transformation photos on Instagram are the most powerful salon marketing tool. Invest in photography.
Working Capital Reserve	$4,250	$12,750	$42,500	Booth rental salons have lower risk — renters cover their own expenses. Commission-based employees require more capital.
Total Startup Cost	$19,210	$75,650	$244,800	Required costs only

Licenses & Permits in Mississippi

General Business License

Mississippi does not have a statewide general business license. Businesses must register their entity with the Mississippi Secretary of State and register with the Mississippi Department of Revenue for sales tax purposes. Individual cities and counties in Mississippi issue their own business licenses — Jackson, Gulfport, Biloxi, and other municipalities have their own licensing programs. Mississippi offers an online business registration portal through the Secretary of State's website.

Industry-Specific Licenses

Food Service Establishment Permit — Mississippi Department of Health — Bureau of Environmental Health
Cost: $50-$300 • Renewal: Annual
General Contractor License — Mississippi State Board of Contractors
Cost: $200-$800 • Renewal: Annual
Cosmetology Shop License — Mississippi Board of Cosmetology
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — Mississippi Real Estate Commission
Cost: $100-$300 • Renewal: Annual
Child Care Facility License — Mississippi State Department of Health — Child Care Facilities Licensure
Cost: $50-$200 • Renewal: Annual
Retailer's Package License — Mississippi Department of Revenue — Alcoholic Beverage Control
Cost: $400-$2,000 • Renewal: Annual
Gaming Operator License — Mississippi Gaming Commission
Cost: $5,000-$50,000 • Renewal: Annual
Pesticide Business Registration — Mississippi Department of Agriculture and Commerce
Cost: $50-$150 • Renewal: Annual

Home-Based Business Rules

Home-based businesses in Mississippi are regulated by local city and county ordinances. Mississippi's many rural areas outside incorporated municipalities generally have no restrictions on home-based businesses. Cities like Jackson and Gulfport allow home occupations with standard restrictions on commercial signage, customer visits, and business activities that could disturb neighbors. Mississippi's cottage food law 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 Mississippi Compares to Neighboring States

Mississippi is one of the more affordable states for launching a Hair Salon, with a cost-of-living index of 84.7 (national average is 100). Compared to neighboring Tennessee ($69,000 median startup cost), Mississippi offers lower costs for a Hair Salon.

State	Est. Cost	LLC Fee
Mississippi (current)	$63,750	$50
Tennessee	$69,000	$300
Alabama	$66,000	$200
Louisiana	$69,000	$100
Arkansas	$66,750	$45

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 Mississippi cosmetology license from the Mississippi Board of Cosmetology before opening
2
Register your Hair Salon as an LLC with the Mississippi Secretary of State ($50 filing fee)
3
Pass the Mississippi 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 Mississippi 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 Mississippi.