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

Compare in another state:

Starting a Hair Salon in Montana typically costs between $14,550 and $242,500, with a median estimate of $72,750. Montana’s cost of living is 3% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Montana costs $35 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 Montana?

Low

$14,550

Medium

$72,750

High

$242,500

National average: $15,000 – $250,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Hair Salon in Montana

Budget:

Salon Space Lease & Build-Out

$33,950

Salon Equipment & Furniture

$19,400

Professional Hair Care Products

$7,760

Salon Software & POS

$1,940

Cosmetology Licenses & Business Permits

$1,455

Insurance

$2,425

Marketing & Grand Opening

$4,850

Working Capital Reserve

$14,550

Options

Include 3 months working capital (+$34,920)

Employees:Just Me1–34–10

Startup Costs

$86,330

Monthly Costs

$11,640

First Year Total

$226,010

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Salon Space Lease & Build-Out	$7,760	$33,950	$116,400	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	$4,850	$19,400	$58,200	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	$1,940	$7,760	$24,250	Retail product sales meaningfully expand revenue per visit. Stock 2-3 months of inventory at opening.
Salon Software & POS	$485	$1,940	$5,820	Vagaro, Fresha, and Square Appointments are popular salon platforms billed on monthly subscriptions that scale with stylist count.
Cosmetology Licenses & Business Permits	$291	$1,455	$4,850	Cosmetology establishment licenses are a low three-figure cost in most states. Each employed stylist must hold an individual state cosmetology license.
Insurance	$776	$2,425	$6,790	Professional liability for salons covers chemical burns, allergic reactions, and service errors. Premiums scale with stylist count and chemical-service mix.
Marketing & Grand Opening	$970	$4,850	$14,550	Before/after transformation photos on Instagram are the most powerful salon marketing tool. Invest in photography.
Working Capital Reserve	$4,850	$14,550	$48,500	Booth rental salons have lower risk — renters cover their own expenses. Commission-based employees require more capital.
Total Startup Cost	$21,922	$86,330	$279,360	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: Varies — contact agency • Renewal: Annual
Contractor Registration — Montana Department of Labor and Industry — Employment Relations Division
Cost: Varies — contact agency • Renewal: Annual
Cosmetology Salon License — Montana Board of Barbers and Cosmetologists
Cost: Varies — contact agency • Renewal: Annual
Real Estate Broker License — Montana Board of Realty Regulation
Cost: Varies — contact agency • Renewal: Annual
Outfitter License — Montana Board of Outfitters
Cost: Varies — contact agency • Renewal: Annual
Child Care Facility License — Montana Department of Public Health and Human Services — Child Care Licensing
Cost: Varies — contact agency • Renewal: Annual
Beer or Liquor License — Montana Department of Revenue — Liquor Control Division
Cost: Varies — contact agency • Renewal: Annual
Pesticide Dealer License — Montana Department of Agriculture
Cost: Varies — contact agency • 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 close to the national average for Hair Salon startup costs, with a cost-of-living index of 96.8. Compared to neighboring North Dakota ($61,500 median startup cost), Montana has higher costs for a Hair Salon.

State	Est. Cost	LLC Fee
Montana (current)	$72,750	$35
North Dakota	$61,500	$135
South Dakota	$62,250	$150
Wyoming	$63,000	$100
Idaho	$72,000	$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 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 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 ($35 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
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 Montana 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.

Related Businesses in Montana

Barbershop

Beauty & Personal Care

$15,000 – $175,000

View in Montana →

Nail Salon

Beauty & Personal Care

$20,000 – $250,000

View in Montana →

Esthetics & Skincare Business

Beauty & Personal Care

$8,000 – $120,000

View in Montana →

Beauty Supply Store

Beauty & Personal Care

$30,000 – $300,000

View in Montana →

Med Spa

Health & Wellness

$100,000 – $1,000,000

View in Montana →

Start a Hair Salon in Other States

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