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

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Starting a Hair Salon in Montana typically costs between $15,900 and $265,000, with a median estimate of $79,500. Montana’s cost of living runs 6% above the national average, which increases commercial rent and labor costs. LLC formation in Montana costs $70 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 Montana?

Low

$15,900

Medium

$79,500

High

$265,000

National average: $15,000 – $250,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Hair Salon in Montana

Budget:

Salon Space Lease & Build-Out

$37,100

Salon Equipment & Furniture

$21,200

Professional Hair Care Products

$8,480

Salon Software & POS

$2,120

Cosmetology Licenses & Business Permits

$1,590

Insurance

$2,650

Marketing & Grand Opening

$5,300

Working Capital Reserve

$15,900

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$94,340

Monthly Costs

First Year Total

$94,340

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Salon Space Lease & Build-Out	$8,480	$37,100	$127,200	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	$5,300	$21,200	$63,600	Professional styling chairs cost $300-$800 each. A complete 6-station setup runs $3,000-$8,000 in chairs alone.
Professional Hair Care Products	$2,120	$8,480	$26,500	Retail product sales can add 15-25% to total revenue. Stock 2-3 months of inventory at opening.
Salon Software & POS	$530	$2,120	$6,360	Vagaro, Fresha, and Square Appointments are popular for salons. Budget $50-$200/month for software.
Cosmetology Licenses & Business Permits	$318	$1,590	$5,300	Cosmetology establishment licenses cost $50-$500. Each employed stylist must hold a state cosmetology license.
Insurance	$848	$2,650	$7,420	Professional liability for salons covers chemical burns, allergic reactions, and service errors. Budget $100-$300/month.
Marketing & Grand Opening	$1,060	$5,300	$15,900	Before/after transformation photos on Instagram are the most powerful salon marketing tool. Invest in photography.
Working Capital Reserve	$5,300	$15,900	$53,000	Booth rental salons have lower risk — renters cover their own expenses. Commission-based employees require more capital.
Total Startup Cost	$23,956	$94,340	$305,280	Required costs only

Licenses & Permits in Montana

General Business License

Montana does not have a statewide general business license. Businesses must register their entity with the Montana Secretary of State and register with the Montana Department of Revenue for withholding taxes. Montana has no sales tax, which simplifies business registration. Some Montana cities and counties require local business licenses. The state's outdoor economy and tourism industry influence many licensing requirements.

Industry-Specific Licenses

Food and Drug Establishment License — Montana Department of Public Health and Human Services — Food and Consumer Safety
Cost: $50-$400 • Renewal: Annual
Contractor Registration — Montana Department of Labor and Industry — Employment Relations Division
Cost: $70-$250 • Renewal: Annual
Cosmetology Salon License — Montana Board of Barbers and Cosmetologists
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — Montana Board of Realty Regulation
Cost: $100-$300 • Renewal: Annual
Outfitter License — Montana Board of Outfitters
Cost: $200-$800 • Renewal: Annual
Child Care Facility License — Montana Department of Public Health and Human Services — Child Care Licensing
Cost: $50-$200 • Renewal: Annual
Beer or Liquor License — Montana Department of Revenue — Liquor Control Division
Cost: $400-$10,000 • Renewal: Annual
Pesticide Dealer License — Montana Department of Agriculture
Cost: $50-$150 • Renewal: Annual

Home-Based Business Rules

Home-based businesses in Montana face minimal regulation in rural and unincorporated areas, which make up most of the state's land area. Bozeman, Missoula, Billings, and Great Falls regulate home occupations through local zoning ordinances with standard restrictions on signage and customer traffic. Montana's cottage food law supports home-based food production. Remote home-based businesses are common in Montana's scattered rural communities.

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 Montana Compares to Neighboring States

Montana is a higher-cost state for starting a Hair Salon, with a cost-of-living index of 105.6 (national average is 100). Compared to neighboring North Dakota ($74,250 median startup cost), Montana has higher costs for a Hair Salon.

State	Est. Cost	LLC Fee
Montana (current)	$79,500	$70
North Dakota	$74,250	$135
South Dakota	$72,750	$150
Wyoming	$75,000	$100
Idaho	$77,250	$100

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 Montana cosmetology license from the Montana Board of Cosmetology before opening
2
Register your Hair Salon as an LLC with the Montana Secretary of State ($70 filing fee)
3
Pass the Montana 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 Montana 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 Montana.