Barber / Cosmetology Permits & Licenses in Indianapolis, IN

Indiana imposes a franchise tax on corporations and LLCs that elect corporate taxation. Standard LLCs taxed as pass-through entities are not subject to franchise tax. The tax is based on apportioned net income with a minimum tax of $200.

Over 90 Indiana cities and counties impose local income taxes (e.g., County Option Income Tax - COIT). Rates vary (e.g., Allen County: 1.5%, Marion County: 2.5%). Business must register with the Indiana Department of Revenue for local tax withholding if located in a taxing jurisdiction. Barber shops are not exempt.

Required for all businesses operating in Marion County/Indianapolis; cosmetology shops classified under retail/services

Local health departments (e.g., Marion County Public Health) conduct inspections for compliance with 830 IAC 1-1 sanitation rules

Verify property zoning allows "personal services" (barber/cosmetology); home occupation permit required if in residential zone per Indianapolis Zoning Ordinance Sec. 61-404

Specific limits on clients/traffic per Indianapolis Rev. Code Sec. 586-303

Required for salon sinks, partitions, or ADA compliance upgrades per Indianapolis Building Code

Comply with Indianapolis Sign Ordinance Chapter 587; max size 1.5 sq ft per linear ft of building frontage

Requires extinguishers, exits, max occupancy posting per IFC 2018 adopted locally

Required for all LLCs; includes filing cover sheet

Applies to ALL Indiana LLCs; maintains good standing

1500 hours education OR 3000 hours apprenticeship required; exam (written/practical) prerequisite

1500 hours education required; state exam prerequisite. Required if offering barber services

Required for physical salon location; must meet sanitation/inspection standards

Applies ONLY if using trade name/DBA; checked via INBiz portal

Required for sales tax collection/remittance if selling products; most barber/cosmetology shops need it

Barber and cosmetology services are generally exempt from Indiana sales tax. However, if tangible personal property (e.g., shampoos, conditioners, combs) is sold, a sales tax permit is required. Services themselves are not taxable unless they include a product component.

Required for all employers in Indiana who withhold state income tax from employee wages. Applies regardless of business type.

All employers with one or more employees must register. New employers pay 2.5% on first $9,500 of each employee's wages (2024 rate). Rate may change after experience rating.

Mandatory for commercial alarms per Indianapolis Alarm Ordinance

Specific to cosmetology for sanitation, waste disposal, no food handling involved

Mandatory for all employers with one or more employees in Indiana, including LLCs. Sole proprietors without employees are exempt but may elect coverage. Enforced under IC 22-3-2-23.

Not legally mandated by the state of Indiana for barbers or cosmetologists, but highly recommended. Often required by landlords or shopping centers. Covers third-party injuries and property damage.

Not legally required by Indiana law or IPLA regulations, but strongly recommended for protection against claims of negligence or improper service. Not a condition of licensure.

A $10,000 surety bond is required for barber shops operated as corporations or LLCs under IC 25-8-2-4. Sole proprietorships are exempt. Bond ensures compliance with state barber laws. Enforced by IPLA under 865 IAC 1-4-3.

Required under Indiana's Financial Responsibility Law (IC 9-25-4-2) for any vehicle registered to the business. Personal auto policies do not cover business use. Minimum liability: $25,000 bodily injury per person, $50,000 per accident, $25,000 property damage.

Not mandated by Indiana law, but strongly recommended. Federal product liability law (under CPSA) holds sellers accountable for defective or harmful products. Risk mitigation essential if selling shampoos, conditioners, clippers, etc.

Not applicable to standard barber shops. Only required if the business obtains a liquor license to serve alcohol on premises. Most barbershops do not serve alcohol; thus, this is typically not required.

Required for LLCs with employees or more than one member; also needed for opening a business bank account.

Multi‑member LLC files Form 1065; single‑member LLC files Schedule C on Form 1040. Estimated quarterly taxes may be required.

Required if the LLC has employees and withholds federal income, Social Security, and Medicare taxes.

Barber and cosmetology services involve use of sharp instruments; must develop an Exposure Control Plan, provide Hepatitis B vaccination, and train staff.

Includes requirements for hazardous chemicals, ventilation, electrical safety, and ergonomics.

Barber shops are considered public accommodations; must provide accessible entrances, restrooms, and services.

Most small barber shops generate less than the threshold; however, if they use regulated chemicals, they must track and possibly report.

If the shop uses spray hair products or nail polish removers with high VOC content, it may need to meet state‑implemented VOC limits that derive from the federal Clean Air Act.

LLCs are pass-through entities; income flows to owners' Indiana individual income tax returns (Form IT-40). The LLC itself does not pay state income tax unless it elects corporate taxation. Owners must report income and pay tax annually.

Claims about hair growth, skin improvement, etc., must be substantiated; no deceptive practices.

Minimum wage, overtime, child labor rules apply; Indiana follows federal minimum wage if not higher.

Must retain I‑9 for 3 years after hire or 1 year after termination.

Barber shops that retail cosmetics must ensure products are FDA‑approved (i.e., not adulterated or misbranded). No federal license required, but labeling must meet FDA standards.

Only required for businesses that meet the Small Quantity Generator threshold.