Complete guide to permits and licenses required to start a barber / cosmetology in Huntsville, AL. Fees, renewal cycles, and agency contacts.
Required for all LLCs. Annual Report also required ($100 fee, due by April 15 each year).
Issued by county/state; required for all businesses with nexus in AL. Local rates vary.
Prerequisites: 1,000 hours education or apprenticeship; pass written/practical exam. Required for barbers.
Prerequisites: 1,000 hours (cosmetology) or 500 hours (specialty); state exam. Required for cosmetologists.
Requires licensed manager/barber on-site; inspections for sanitation/equipment.
Must have licensed booth renters or manager; health/safety inspections required.
File with SOS and county probate office. Renewal not required unless name changes.
Simplified Seller Use Tax Return required monthly/quarterly based on revenue.
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.
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.
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.
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.
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'.
Required for all businesses; barber shops classified under retail/services
Applies outside city limits; all businesses must obtain
Barber/cosmetology typically allowed in C-1/C-2 zones; site plan review required
Limited to 25% floor area; no external signage; 1 non-resident employee max
Required for sinks, partitions, ADA modifications common in salons
Max 1 freestanding sign; illuminated signs restricted
Requires approved floor plan, equipment list, 3-compartment sink
Max occupancy posted; 2 exits typically required for salons
Monitored systems required in commercial plazas
3 free false alarms/year then escalating fines
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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 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 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.
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.
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.
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.
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.
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.
All barbers and cosmetologists must be individually licensed. The business must employ only licensed personnel. Operating without a license is a misdemeanor.
Must register for a sales tax permit if selling retail items. File returns monthly/quarterly as assigned.
Required by law for most employers in Alabama. Independent contractors are not covered, but misclassification can trigger audits.
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.
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.
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.
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.
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.
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.
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.
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.
Employers must display the Alabama Department of Labor's 'Notice to Employees' poster, which includes minimum wage, child labor, and workers' compensation information.
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.
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.
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.
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.
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.
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.
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.
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.
The Alabama Department of Revenue requires annual renewal of the Business Privilege License, with a fee of $100.00 each year.
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.
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.
Permit Finder asks follow-up questions to give you an exact list of permits.
Find Your Permits