Barber / Cosmetology Permits & Licenses in Huntsville, AL

Complete guide to permits and licenses required to start a barber / cosmetology in Huntsville, AL. Fees, renewal cycles, and agency contacts.

Certificate of Formation (LLC Registration)

Alabama Secretary of State
Required
Fee: $208.00-$208.00
Renewal: one time
Type: registration

Required for all LLCs. Annual Report also required ($100 fee, due by April 15 each year).

Annual Business Privilege Tax Registration (Business Privilege License)

Alabama Department of Revenue
Required
Fee: $100.00-$100.00
Renewal: annual
Type: license

Issued by county/state; required for all businesses with nexus in AL. Local rates vary.

Barber License

Alabama Board of Barber Examiners
Required
Fee: $150.00-$150.00
Renewal: biennial
Type: license

Prerequisites: 1,000 hours education or apprenticeship; pass written/practical exam. Required for barbers.

Cosmetology License

Alabama Board of Cosmetology
Required
Fee: $120.00-$120.00
Renewal: biennial
Type: license

Prerequisites: 1,000 hours (cosmetology) or 500 hours (specialty); state exam. Required for cosmetologists.

Barber Shop License

Alabama Board of Barber Examiners
May Apply
Fee: $100.00-$100.00
Renewal: annual
Type: license

Requires licensed manager/barber on-site; inspections for sanitation/equipment.

Salon License

Alabama Board of Cosmetology
May Apply
Fee: $150.00-$150.00
Renewal: annual
Type: license

Must have licensed booth renters or manager; health/safety inspections required.

Assumed Name (DBA) Filing

Alabama Secretary of State
May Apply
Fee: $30.00-$30.00
Renewal: one time
Type: registration

File with SOS and county probate office. Renewal not required unless name changes.

Sales Tax License (if selling retail products)

Alabama Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Simplified Seller Use Tax Return required monthly/quarterly based on revenue.

Alabama Sales Tax Permit (Sales and Use Tax Certificate of Registration)

Alabama Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Barber and cosmetology services themselves are not subject to sales tax in Alabama, but the sale of tangible personal property (e.g., shampoos, conditioners, combs) is taxable. Registration required if selling such items. Registration is done via the My Alabama Taxes (MAT) system.

Alabama Withholding Tax Registration (Employer Tax Withholding)

Alabama Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Required for all employers in Alabama. Must register via My Alabama Taxes (MAT) system. Applies to barbershops with hired stylists, assistants, or other staff. Owner-operators of an LLC who do not take a salary are not required to withhold.

Alabama Unemployment Insurance Tax (UI Tax)

Alabama Department of Labor
May Apply
Fee: $8000.00-$8000.00
Renewal: one time
Type: registration

Employers must register with the Alabama Department of Labor. Applies to all employers with one or more employees working 20+ hours/week or paying $1,500+ in wages per quarter. New employers pay 2.7% on first $8,000 of wages per employee annually.

Alabama Annual Report and Privilege Tax (Business Privilege License Tax)

Alabama Department of Revenue
Required
Fee: $100.00-$100.00
Renewal: annual
Type: registration

All Alabama LLCs must file an Annual Report and pay the Business Privilege License Tax. This is a state-level requirement, not a federal one. Filed via My Alabama Taxes (MAT). Amount is based on total capital employed in Alabama. Due every year regardless of revenue or activity level.

Local Business Privilege Tax or Occupational License

Local County or Municipal Government
May Apply
Fee: $50.00-$500.00
Renewal: one time
Type: registration

Most cities and counties in Alabama require a local business license or occupational tax receipt. Examples include Birmingham, Montgomery, Huntsville. Fees and requirements vary. Must be renewed annually. Check with the city clerk or county revenue commissioner. Barber shops are typically classified under 'personal services' or 'cosmetology'.

City Business License

City of Birmingham Revenue Department
May Apply
Fee: $0.15-$1.00
Renewal: annual
Type: license

Required for all businesses; barber shops classified under retail/services

Jefferson County Business Privilege License

Jefferson County Revenue Commissioner
May Apply
Fee: $100.00-$100.00
Renewal: annual
Type: license

Applies outside city limits; all businesses must obtain

Zoning Compliance / Use Permit

[County/City] Planning & Zoning Department
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: permit

Barber/cosmetology typically allowed in C-1/C-2 zones; site plan review required

Home Occupation Permit

[County/City] Planning Department
May Apply
Fee: $25.00-$25.00
Renewal: one time
Type: permit

Limited to 25% floor area; no external signage; 1 non-resident employee max

Building Permit for Interior Modifications

City of Huntsville Building Safety
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: permit

Required for sinks, partitions, ADA modifications common in salons

Sign Permit

[County/City] Building or Sign Enforcement
May Apply
Fee: $25.00-$25.00
Renewal: one time
Type: permit

Max 1 freestanding sign; illuminated signs restricted

Jefferson County Health Department Salon License

Jefferson County Department of Health
Required
Fee: $200.00-$200.00
Renewal: annual
Type: license

Requires approved floor plan, equipment list, 3-compartment sink

Fire Inspection / Certificate of Occupancy

City or County Fire Department
May Apply
Fee: $100.00-$300.00
Renewal: one time
Type: permit

Max occupancy posted; 2 exits typically required for salons

Fire Alarm System Permit

Birmingham Fire Code Enforcement
May Apply
Fee: $100.00-$250.00
Renewal: one time
Type: permit

Monitored systems required in commercial plazas

Alarm System Registration Permit

Birmingham Police Department
May Apply
Fee: $50.00-$50.00
Renewal: annual
Type: permit

3 free false alarms/year then escalating fines

Workers' Compensation Insurance

Alabama Workers' Compensation Board
May Apply
Fee: $1000.00-$3000.00
Renewal: one time
Type: certificate

Mandatory for all employers with four or more employees under Alabama Workers' Compensation Act. Sole proprietors and partners may opt out. Barbers employed by the LLC are considered employees. Coverage must be obtained from a licensed insurer or approved self-insurance program.

General Liability Insurance

None (not state-mandated)
Required
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Not mandated by Alabama state law for barbers or cosmetology businesses specifically. However, many local municipalities, landlords, and professional associations require it as a condition of operation. Strongly recommended to cover slip-and-fall accidents or property damage.

Professional Liability Insurance (Errors & Omissions)

None
Required
Renewal: one time
Type: certificate

Not legally required by the Alabama Board of Cosmetology. However, it is strongly recommended for protection against claims of negligence, hair loss, burns, or allergic reactions. Some private insurers offer combined general and professional liability policies for salons.

Surety Bond (License Bond)

Alabama Department of Health – Office of Health Professions Licensing
May Apply
Fee: $50.00-$500.00
Renewal: one time
Type: certificate

A $10,000 surety bond is required for all cosmetology establishments, including barber shops, as a condition of licensure. The bond ensures compliance with state cosmetology laws and regulations. Issued by a licensed surety company and filed with the Alabama Board of Cosmetology.

Commercial Auto Insurance

Alabama Department of Insurance
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Required by Alabama law for any vehicle registered to the business. Personal auto policies do not cover business use. Applies if the LLC owns or leases a vehicle used for business purposes (e.g., mobile barber services).

Product Liability Insurance

None
May Apply
Fee: $1000.00-$3000.00
Renewal: one time
Type: certificate

Not legally mandated by Alabama, but highly recommended if selling shampoos, conditioners, pomades, or other cosmetic products. Covers claims related to defective or harmful products. May be included in broader liability policies.

Liquor Liability Insurance

Alabama Alcoholic Beverage Control Board
May Apply
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Only applicable if the barber shop holds an alcohol license (e.g., for a lounge area). Most barber shops do not serve alcohol; therefore, this is rarely required. If applicable, coverage must meet ABC Board requirements for dram shop liability.

Obtain an Employer Identification Number (EIN)

Internal Revenue Service (IRS)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

While not required for a single-member LLC with no employees, most banks require an EIN to open a business account. This is a federal requirement for tax administration.

Federal tax filing obligations for LLC

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: filing

By default, a multi-member LLC is taxed as a partnership and must file Form 1065. A single-member LLC is disregarded unless electing corporate taxation. Alabama barber LLCs must comply with federal income and self-employment tax rules.

OSHA Workplace Safety and Hazard Communication

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $0.00-$500.00
Renewal: one time
Type: permit

Federal OSHA standard 29 CFR 1910.1200 requires employers to maintain Safety Data Sheets (SDS) for all hazardous chemicals (e.g., hair dyes, disinfectants, perms), label containers, and train employees. Barbershops commonly use regulated chemicals.

ADA Compliance for Public Accommodations

Department of Justice (DOJ)
May Apply
Fee: $1000.00-$10000.00
Renewal: one time
Type: permit

Under Title III of the ADA, barbershops must be accessible to customers with disabilities. This includes physical access (entrances, restrooms), communication access, and service policies. New constructions or alterations must meet ADA Standards for Accessible Design.

EPA Regulations on Hazardous Waste and Chemicals

Environmental Protection Agency (EPA)
May Apply
Fee: $1000.00-$1000.00
Renewal: one time
Type: permit

EPA regulates disposal of chemicals under RCRA. Barbershops typically do not produce large volumes, but must still identify hazardous products and dispose of them properly. EPA does not require federal permits for most small salons.

FTC Compliance with Advertising and Consumer Protection

Federal Trade Commission (FTC)
Required
Renewal: one time
Type: permit

FTC enforces truth-in-advertising rules. Barbershops must avoid deceptive claims (e.g., "FDA-approved" for services, unsubstantiated "organic" claims). Applies to websites, social media, and signage. No federal license required, but compliance is mandatory.

DOL I-9 Employment Eligibility Verification

U.S. Department of Homeland Security (DHS) in coordination with DOL
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

All U.S. employers must complete Form I-9 to verify identity and work authorization. Applies to barbershops with employees. E-Verify is not federally required unless contracting with federal agencies.

DOL Fair Labor Standards Act (FLSA) Wage and Hour Compliance

U.S. Department of Labor (DOL)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

FLSA sets federal minimum wage ($7.25/hour), overtime pay (1.5x regular rate after 40 hours), and recordkeeping requirements. Barbers paid by commission or tips must still meet minimum wage thresholds. Independent contractor arrangements must meet FLSA criteria.

DOL Family and Medical Leave Act (FMLA)

Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

FMLA requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave annually for qualifying medical and family reasons. Most small barbershops do not meet the 50-employee threshold and are exempt.

No Federal License Required for Barbering or Cosmetology

U.S. Department of Commerce / Small Business Administration
Required
Fee: $0.00-$0.00
Renewal: one time
Type: license

There is no federal license for barbers or cosmetologists. Licensing is regulated entirely at the state level (Alabama Board of Cosmetology). This is a common point of confusion—federal requirements are limited to tax, labor, and safety compliance.

FDA Regulation of Cosmetics and Devices

Food and Drug Administration (FDA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

The FDA regulates the safety and labeling of cosmetics and personal care products used in barbershops. While no pre-market approval is required, products must be safe and properly labeled. Barbers using laser hair removal devices may be subject to additional FDA device regulations.

Alabama Barber/Cosmetology Salon License

Alabama Board of Cosmetology
May Apply
Fee: $50.00-$150.00
Renewal: annual
Type: license

All barbers and cosmetologists must be individually licensed. The business must employ only licensed personnel. Operating without a license is a misdemeanor.

Alabama Sales Tax Permit

Alabama Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Must register for a sales tax permit if selling retail items. File returns monthly/quarterly as assigned.

Workers’ Compensation Insurance

Alabama Department of Labor
May Apply
Fee: $300.00-$1500.00
Renewal: one time
Type: certificate

Required by law for most employers in Alabama. Independent contractors are not covered, but misclassification can trigger audits.

Annual Report Filing for Alabama LLC

Alabama Secretary of State
Required
Fee: $100.00-$100.00
Renewal: one time
Type: permit

Every Alabama LLC must file an annual report with the Secretary of State. The due date is based on the anniversary month of the business’s formation. For example, if formed on March 15, the report is due by the first business day of April each year.

Barber/Cosmetology License Renewal

Alabama Board of Cosmetology
Required
Fee: $55.00-$55.00
Renewal: biennial
Type: license

All licensed barbers, cosmetologists, and related professionals must renew their license every two years by September 30 in odd-numbered years (e.g., 2023, 2025). Renewal requires completion of 16 hours of continuing education.

Continuing Education Requirement for Barber/Cosmetology License

Alabama Board of Cosmetology
Required
Renewal: biennial
Type: certificate

Licensees must complete 16 hours of board-approved continuing education every two years, including at least 2 hours in infection control and safety. Courses must be from approved providers.

Sales Tax Return Filing

Alabama Department of Revenue
May Apply
Renewal: one time
Type: filing

Businesses collecting sales tax must file returns electronically. Filing frequency (monthly or quarterly) is assigned by the Department of Revenue based on volume. Barber services are generally exempt from sales tax, but retail product sales are taxable.

Employer Withholding Tax Filing

Alabama Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: filing

Employers must withhold state income tax from employee wages and file Form A-6 or electronic equivalent. Frequency (monthly or quarterly) depends on deposit schedule assigned by the department.

Unemployment Insurance Tax Filing and Payment

Alabama Department of Labor
May Apply
Fee: $8000.00-$8000.00
Renewal: varies
Type: filing

Employers with one or more employees must register and file quarterly unemployment tax returns (Form UCB-601) and pay tax on first $8,000 in wages per employee annually.

Federal EIN Annual Filing Requirement (Form 941, 940, 944)

Internal Revenue Service
May Apply
Renewal: annual
Type: filing

Form 941 (quarterly federal tax return), Form 940 (federal unemployment tax), and Form 944 (annual alternative for small employers) must be filed as applicable. Form 944 is rare and assigned by IRS.

OSHA Poster Display

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Employers must display the OSHA Job Safety and Health – It's the Law poster (OSHA 2206) in a conspicuous location accessible to employees. Available free from OSHA website.

Alabama Minimum Wage and Labor Law Poster

Alabama Department of Labor
May Apply
Renewal: one time
Type: permit

Employers must display the Alabama Department of Labor's 'Notice to Employees' poster, which includes minimum wage, child labor, and workers' compensation information.

Display of Barber/Cosmetology License

Alabama Board of Cosmetology
Required
Renewal: one time
Type: permit

All licensed individuals must display their current, unexpired license in a visible location at the place of employment. This includes barbers, cosmetologists, and booth renters.

Health and Sanitation Inspection

Alabama Department of Public Health (ADPH)
Required
Renewal: one time
Type: permit

Barber shops and cosmetology salons are subject to periodic inspections by the Alabama Board of Cosmetology for compliance with sanitation, sterilization, and facility standards. No fixed schedule; inspections are unannounced.

Fire Safety Inspection

Alabama Fire Marshal’s Office
May Apply
Renewal: one time
Type: permit

Most commercial buildings, including barber shops, are subject to fire code inspections. Frequency and requirements vary by municipality. Contact local fire department for local requirements.

Business License Renewal (Local)

Local County or Municipal Government
May Apply
Fee: $50.00-$500.00
Renewal: one time
Type: license

Most cities and counties require a local business license or occupational tax permit. Renewal deadlines and fees vary (e.g., Montgomery requires annual renewal by January 31). Check with local clerk’s office.

Record Retention for Tax and Licensing Purposes

Internal Revenue Service
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Businesses must keep sales tax, payroll, and income tax records for at least 3 years. This includes invoices, receipts, tax returns, and employee records. Records must be available for audit.

Workers' Compensation Insurance Coverage

Alabama Workers' Compensation Board
May Apply
Fee: $5.00-$15.00
Renewal: one time
Type: certificate

Alabama law requires employers with five or more employees to carry workers' compensation insurance. Coverage must be maintained continuously. Independent contractors may not count toward the threshold.

Step-by-Step Compliance Guide

  1. First, register your business with the Alabama Secretary of State and obtain a Certificate of Formation if operating as an LLC, with a fee of $208.00.
  2. Next, obtain a Business Privilege License from the Alabama Department of Revenue, which requires an initial fee of $100.00 and annual renewal.
  3. You must also register for the Annual Business Privilege Tax with the Alabama Department of Revenue, costing $100.00 annually.
  4. Acquire the necessary professional license, either a Barber License from the Alabama Board of Barber Examiners ($150.00) or a Cosmetology License from the Alabama Board of Cosmetology ($120.00).
  5. Ensure you comply with FTC guidelines regarding advertising and consumer protection, which may involve varying fees.
  6. Obtain General Liability Insurance, though not state-mandated, it is required by many landlords and typically costs between $500.00 and $1500.00.
  7. Consider Professional Liability Insurance (Errors & Omissions) to protect against potential claims.
  8. Maintain accurate records for tax and licensing purposes as required by the IRS and state agencies.

Common Mistakes to Avoid

  • Forgetting to renew your Barber or Cosmetology License with the Alabama Board every two years will result in penalties.
  • Failing to pay the annual Business Privilege Tax to the Alabama Department of Revenue can lead to fines and potential business closure.
  • Operating without General Liability Insurance, while not legally required by the state, can leave your business vulnerable to significant financial risk.
  • Neglecting to comply with FTC advertising regulations can result in legal action and costly fines.
  • Assuming a federal license is required for barbering or cosmetology services in Huntsville, AL is incorrect.

Frequently Asked Questions

What is the cost of renewing my Cosmetology License in Huntsville?

The Alabama Board of Cosmetology charges $55.00 for a biennial renewal of your Cosmetology License, and continuing education may be required as part of the renewal process.

Is a federal license needed to operate a barber shop in Huntsville, Alabama?

No, the U.S. Department of Commerce/Small Business Administration does not require a federal license for barbering or cosmetology services; licensing is handled at the state level.

How often do I need to renew my Business Privilege License?

The Alabama Department of Revenue requires annual renewal of the Business Privilege License, with a fee of $100.00 each year.

What kind of insurance is recommended for a barber shop or salon?

While not mandated by the state, General Liability Insurance is highly recommended, typically costing between $500.00 and $1500.00, and Professional Liability Insurance is also advisable.

Does Huntsville require a separate salon license from the state?

No, Huntsville does not issue a separate salon license; however, you will need a Jefferson County Health Department Salon License, which costs $200.00 annually.

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