Barber / Cosmetology Permits & Licenses in Ankeny, IA

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

Iowa State Income Tax Filing Obligation

Iowa Department of Revenue
Required
Renewal: one time
Type: filing

LLC owners report business income on personal Iowa income tax returns (Form IA 1040). Iowa does not impose a separate entity-level income tax on pass-through entities like LLCs.

Health Inspection

Local Public Health Department or Iowa Department of Public Health
Required
Renewal: one time
Type: permit

Certificate of Organization (LLC Formation)

Iowa Secretary of State - Business Services Division
Required
Fee: $50.00-$50.00
Renewal: one time
Type: registration

Required for all LLCs. File online via Fast Track Filing system.

Biennial Report

Iowa Secretary of State
Required
Fee: $30.00-$30.00
Renewal: one time
Type: registration

Applies to all LLCs in good standing.

Iowa Sales Tax Filing

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

Filing frequency (monthly or quarterly) is assigned by IDOR based on expected sales volume. Even with $0 sales, a return must be filed if registered.

Iowa Withholding Tax Filing

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

Employers must file Form IA 119W monthly or more frequently based on payroll size. Due dates depend on assigned filing frequency.

Federal Employer Identification Number (EIN)

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

Required for all LLCs with employees. Also recommended for all LLCs to open business bank accounts and file taxes. Apply online via IRS EIN Assistant.

City Business License or Privilege Tax

Local Municipal Government (e.g., City of Des Moines, Cedar Rapids, Davenport)
May Apply
Fee: $50.00-$200.00
Renewal: one time
Type: registration

Many Iowa cities (e.g., Des Moines, Cedar Rapids, Davenport) require a local business license or privilege tax for barbershops. Fees and requirements vary. Example: Des Moines charges $50 annually for a barber shop (as of 2023).

City of Des Moines General Business License

City of Des Moines, Iowa
May Apply
Fee: $50.00-$50.00
Renewal: annual
Type: license

Required for all businesses; barber shops must also comply with state cosmetology licensing

Polk County Zoning Compliance (Des Moines area)

Polk County Planning & Development
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: permit

Barber/cosmetology classified as personal service; home occupation permit available with restrictions (e.g., no more than 25% floor area)

Des Moines Building Permit for Interior Modifications

City of Des Moines, Iowa
May Apply
Fee: $100.00-$100.00
Renewal: one time
Type: permit

Plumbing permits separate if adding sinks/barber stations

Des Moines Sign Permit

City of Des Moines Development Services
May Apply
Fee: $75.00-$75.00
Renewal: one time
Type: permit

Must comply with sign code size/height limits (e.g., max 1.5 sq ft per linear foot of building frontage)

Polk County Health Department Salon Inspection

Polk County Health Department
Required
Fee: $200.00-$200.00
Renewal: one time
Type: permit

Enforces state sanitation rules locally; annual re-inspections

Des Moines Fire Department Inspection and Occupancy Permit

City of Des Moines Fire Department
May Apply
Fee: $150.00-$150.00
Renewal: one time
Type: permit

Covers fire alarms, exits, extinguishers; max occupancy based on sq footage

Des Moines Fire Alarm System Permit

Des Moines Fire Department
May Apply
Fee: $150.00-$150.00
Renewal: one time
Type: permit

Required for commercial buildings per fire code

Cedar Rapids Business License (example for Linn County)

City of Cedar Rapids
May Apply
Fee: $35.00-$35.00
Renewal: annual
Type: license

Varies significantly by municipality; check specific city code

Home Occupation Permit (Generic Iowa Municipal)

Varies by city/county (e.g., Polk County)
May Apply
Fee: $50.00-$100.00
Renewal: annual
Type: permit

Barber/cosmetology often restricted or prohibited in homes due to water/waste

Workers' Compensation Insurance

Iowa Workers' Compensation Commission
May Apply
Fee: $1.50-$3.50
Renewal: one time
Type: certificate

Required for all employers with one or more employees in Iowa, including part-time and minor employees. Sole proprietors without employees are exempt from mandatory coverage but may elect to cover themselves. Applies to barbers employed by the LLC, not independent contractors. Enforced under Iowa Code § 85.7.

General Liability Insurance

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

Not mandated by Iowa state law or the Iowa Board of Cosmetology. However, landlords or property managers may require it as part of a lease agreement. Strongly recommended to protect against third-party injury or property damage claims. Not a legal requirement at state level.

Professional Liability / Errors and Omissions Insurance

None
Required
Fee: $800.00-$2000.00
Renewal: one time
Type: certificate

Not required by the Iowa Board of Cosmetology or any state agency. However, it is strongly recommended for protection against claims of negligence, mistakes, or unsatisfactory services. No statutory mandate exists for barber or cosmetology businesses in Iowa.

Barber License

Iowa Department of Public Health - Board of Barbering
May Apply
Fee: $75.00-$75.00
Renewal: one time
Type: license

Requires 2,100 hours education or apprenticeship + exam (80% pass). Shop permit also required.

Cosmetology License

Iowa Department of Inspections, Appeals, & Licensing - Board of Cosmetology Arts & Sciences
May Apply
Fee: $75.00-$75.00
Renewal: one time
Type: license

Requires 2,100 hours education + theory/practical exams. Multiple specialties available.

Barber Shop Registration

Iowa Department of Inspections, Appeals, & Licensing - Board of Barbering
May Apply
Fee: $100.00-$100.00
Renewal: one time
Type: registration

Must have licensed manager/barber on-site. Inspections required.

Cosmetology Establishment Registration

Iowa Department of Inspections, Appeals, & Licensing (DIAL) - Barbering & Cosmetology Arts Board
May Apply
Fee: $110.00-$110.00
Renewal: one time
Type: license

Requires licensed cosmetologist manager. Must meet sanitation standards.

Assumed Name (DBA) Certificate

Iowa Secretary of State
May Apply
Fee: $10.00-$10.00
Renewal: one time
Type: registration

Publish in county newspaper within 30 days of filing.

Sales Tax Permit

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

Barber/cosmetology services generally nontaxable; products are taxable. File returns monthly/quarterly.

Iowa Sales Tax Permit

Iowa Department of Revenue
May Apply
Renewal: one time
Type: registration

Barber and cosmetology services are generally exempt from sales tax in Iowa, but retail sales of hair care products are taxable. A sales tax permit is required if selling taxable items. See Iowa Admin. Code r. 78-25.1(2).

Iowa Withholding Tax Registration

Iowa Department of Revenue
May Apply
Renewal: one time
Type: registration

Required for all employers in Iowa. Includes withholding state income tax from employee wages. Registration is done via Iowa Taxpayer Access Point (TAP).

Iowa Unemployment Insurance Tax Registration

Iowa Workforce Development
May Apply
Renewal: one time
Type: registration

Employers must register with Iowa Workforce Development and pay state unemployment insurance (SUI) tax. New employers pay 1% on first $6,000 of each employee's wages annually (rate subject to change).

OSHA workplace safety compliance (General Duty Clause and hazard communication)

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $50.00-$200.00
Renewal: one time
Type: permit

Applies only if the business has employees. Requires compliance with OSHA’s Hazard Communication Standard (29 CFR 1910.1200) for handling chemicals (e.g., hair dyes, disinfectants). Must provide Safety Data Sheets (SDS), employee training, and proper labeling. Also subject to OSHA’s General Duty Clause requiring a safe workplace free from recognized hazards.

ADA compliance for public accommodations

Department of Justice (DOJ)
Required
Renewal: one time
Type: permit

All barber shops and cosmetology businesses serving the public must comply with Title III of the ADA. This includes physical access (e.g., door width, restroom access), communication access (e.g., serving customers with disabilities), and policy modifications. Applies regardless of number of employees or business size.

EPA regulations on hazardous waste and chemical management

Environmental Protection Agency (EPA)
May Apply
Renewal: one time
Type: permit

Most barber and cosmetology businesses are considered Conditionally Exempt Small Quantity Generators (CESQG) and are exempt from federal hazardous waste regulations if they produce less than 220 lbs per month. However, they must still properly dispose of items like used disinfectant containers, aerosol cans, and chemical residues. State rules may be stricter.

FTC compliance with advertising and consumer protection rules

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

Applies to all advertising, including websites, social media, and flyers. Must avoid deceptive claims (e.g., “FDA-approved” for unapproved products), ensure testimonials reflect typical results, and disclose material connections (e.g., paid influencers). Also includes compliance with the FTC’s “Green Guides” if making environmental claims.

DOL requirements for wage and hour compliance (FLSA)

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

Applies to businesses with employees. Must comply with Fair Labor Standards Act (FLSA) including minimum wage ($7.25/hour federally), overtime pay (1.5x regular rate after 40 hours), and proper recordkeeping. Tipped employees (e.g., shampoo assistants) must still earn at least minimum wage when tips are included.

DOL requirements for Form I-9 verification

Department of Homeland Security (DHS) / USCIS
May Apply
Renewal: one time
Type: permit

All employers in the U.S., including LLCs, must complete Form I-9 for every employee to verify identity and work authorization. E-Verify is not federally required for this business type unless contracting with federal agencies or in certain states.

Surety Bond (License Bond)

Iowa Department of Public Health – Bureau of Health Facilities
May Apply
Fee: $100.00-$300.00
Renewal: one time
Type: certificate

A $10,000 surety bond is required for all barber shop licenses issued to businesses (including LLCs) under Iowa Administrative Code rule 653—10.2(1). This bond ensures compliance with state cosmetology laws and regulations. Sole proprietors are not required to post a bond. The bond must be issued by a surety company licensed in Iowa.

Commercial Auto Insurance

Iowa Department of Transportation
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Required under Iowa’s financial responsibility law (Iowa Code § 321.18) if the business owns and operates a vehicle. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $25,000 property damage. Applies only if the LLC owns or leases a vehicle used for business (e.g., mobile barber services).

Product Liability Insurance

None
Required
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Not mandated by Iowa law for barbershops selling retail products (e.g., hair care items). However, businesses selling physical goods assume liability risk. While not required, it is advisable to carry coverage. No state regulatory body enforces this as a standalone requirement.

Liquor Liability Insurance

None
May Apply
Renewal: one time
Type: certificate

Only applicable if the barber shop holds a liquor license and serves alcohol. Most barbershops in Iowa do not serve alcohol, so this is not typical. If applicable, the Iowa Alcoholic Beverages Division requires compliance with liability insurance or bond requirements. Not relevant for standard barber/cosmetology operations.

Obtain an Employer Identification Number (EIN)

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

Required for all LLCs, including single-member LLCs that elect to be taxed as corporations or have employees. Even if not legally required, it is strongly recommended for banking and licensing purposes.

Federal income and self-employment tax obligations for LLC

Internal Revenue Service (IRS)
Required
Fee: $168600.00-$168600.00
Renewal: one time
Type: filing

A single-member LLC in Iowa is disregarded for federal tax purposes and reports income on Schedule C of the owner’s Form 1040. Multi-member LLCs are taxed as partnerships and must file Form 1065. All owners pay self-employment tax on net earnings via Schedule SE.

DOL compliance with Family and Medical Leave Act (FMLA)

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

FMLA applies only if the business employs 50 or more employees for at least 20 workweeks in the current or preceding year. Requires providing eligible employees up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons.

FDA regulation of cosmetics and salon products

Food and Drug Administration (FDA)
May Apply
Renewal: one time
Type: permit

The FDA regulates cosmetics used in barber and cosmetology businesses. Businesses must not use adulterated or misbranded products. No pre-market approval is required, but labels must list ingredients and avoid false claims. Businesses are not required to register but must comply with labeling and safety standards.

Annual Report Filing for Iowa LLC

Iowa Secretary of State
Required
Fee: $45.00-$45.00
Renewal: annual
Type: permit

All Iowa LLCs must file an annual report by April 30 each year. The report confirms business information such as principal address, registered agent, and management structure. Failure to file within 60 days after April 30 may lead to dissolution.

Iowa Cosmetology License Renewal

Iowa Board of Cosmetology
Required
Fee: $75.00-$75.00
Renewal: biennial
Type: license

All licensed barbers, cosmetologists, and specialty practitioners must renew their license every two years. Renewal opens 60 days prior. Licensees must complete 12 hours of continuing education prior to renewal.

Continuing Education Requirement for Cosmetology License Renewal

Iowa Board of Cosmetology
Required
Renewal: biennial
Type: certificate

12 hours of board-approved continuing education required every two years, including at least 2 hours in Iowa laws and rules. Courses must be from approved providers.

Sales Tax License Renewal

Iowa Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: license

Iowa does not require periodic renewal of sales tax license. Once registered, the license remains active unless canceled. However, businesses must file regular sales tax returns.

Sales Tax Return Filing

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

Barber shops selling retail items (e.g., hair products) must collect and remit sales tax. Filing frequency is assigned by the Department of Revenue based on volume.

Employer Withholding Tax Registration and Filing

Iowa Department of Revenue
May Apply
Renewal: varies
Type: filing

Employers must withhold Iowa income tax from employee wages. Employers register once, then file Form IA 990 (quarterly) and deposit taxes based on payroll frequency.

Federal EIN and Payroll Tax Filings (Form 941, Form 940)

Internal Revenue Service (IRS)
May Apply
Fee: $0.00-$0.00
Renewal: annual
Type: filing

Employers must file Form 941 (quarterly federal tax return) and Form 940 (federal unemployment tax) annually. EIN is one-time registration but ongoing filings required.

OSHA Injury and Illness Recordkeeping (Form 300, 300A)

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

Most small barbershops are exempt from OSHA recordkeeping due to industry classification (NAICS 812112 – low risk). Applies only if business has 11+ employees.

Display of Iowa Cosmetology License

Iowa Board of Cosmetology
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Each licensed practitioner must display their current Iowa cosmetology license in a visible location at the place of business. The establishment must also post the Board’s consumer rights notice.

Display of Federal and State Labor Law Posters

U.S. Department of Labor
May Apply
Renewal: one time
Type: permit

Employers must display current federal (e.g., FLSA, OSHA, EEO) and Iowa labor law posters in a conspicuous place accessible to employees. Posters must be updated as laws change.

Iowa Business Tax Registration (BTR)

Iowa Department of Revenue
Required
Fee: $0.00-$0.00
Renewal: one time
Type: registration

One-time registration for all state tax accounts (sales, withholding, etc.). No renewal required, but business must update information if changes occur.

Local Business License or Permit Renewal

Local City or County Government
May Apply
Fee: $50.00-$200.00
Renewal: annual
Type: license

Cities such as Des Moines, Cedar Rapids, and Davenport require annual business licenses for barbershops. Fees and deadlines vary. Contact local clerk’s office for specifics.

Fire Inspection

Local Fire Department
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Most cities require annual fire inspections for commercial establishments. Inspections cover exits, fire extinguishers, smoke detectors, and compliance with NFPA standards.

Step-by-Step Compliance Guide

  1. Begin by confirming no federal license is required for barbering or cosmetology services through the U.S. Department of Commerce.
  2. Ensure your advertising and consumer protection practices comply with Federal Trade Commission (FTC) regulations; fees vary depending on violations.
  3. Maintain thorough record retention for all tax and licensing purposes as required by the Internal Revenue Service.
  4. Address potential accessibility concerns by ensuring ADA compliance for public accommodations, with potential costs ranging from $200.00 to $5000.00.
  5. If operating as an LLC, understand and fulfill your federal income and self-employment tax obligations to the IRS.
  6. Obtain an Employer Identification Number (EIN) from the IRS if you plan to hire employees or operate as a corporation or partnership.
  7. Comply with OSHA’s General Duty Clause to maintain a safe workplace for employees and customers.
  8. Stay current with FTC guidelines on advertising and consumer protection to avoid potential penalties and legal issues.

Common Mistakes to Avoid

  • Failing to obtain an EIN when required can lead to penalties from the IRS.
  • Ignoring ADA compliance can result in lawsuits and significant fines.
  • Incorrectly classifying workers as independent contractors instead of employees can cause tax issues.
  • Neglecting to retain accurate tax records can lead to audits and penalties.
  • Disregarding FTC advertising guidelines can result in cease and desist orders and financial penalties.

Frequently Asked Questions

What federal agencies oversee barber and cosmetology businesses?

The Federal Trade Commission (FTC) regulates advertising and consumer protection, while the Internal Revenue Service (IRS) handles tax obligations and employer identification numbers. The Department of Justice (DOJ) oversees ADA compliance for public accommodations.

Are there any federal licensing requirements for barbers and cosmetologists in Ankeny, IA?

No, there is no federal license required for barbering or cosmetology services; however, you must adhere to all federal regulations regarding business operations, taxes, and consumer protection.

What are the potential costs associated with ADA compliance?

ADA compliance costs can vary significantly, ranging from $200.00 to $5000.00, depending on the necessary modifications to your business to ensure accessibility for individuals with disabilities.

What is the purpose of obtaining an EIN?

An EIN, or Employer Identification Number, is required by the IRS for businesses operating as corporations or partnerships, or if you plan to hire employees; it’s essentially a Social Security number for your business.

What happens if I don't comply with FTC advertising guidelines?

Failure to comply with FTC advertising guidelines can lead to a variety of consequences, including cease and desist orders, financial penalties, and damage to your business’s reputation.

Need a personalized checklist?

Permit Finder asks follow-up questions to give you an exact list of permits.

Find Your Permits