Complete guide to permits and licenses required to start a barber / cosmetology in Bowling Green, KY. Fees, renewal cycles, and agency contacts.
Required under 902 KAR 45:065; inspections for sanitation, disinfection. Apply via online portal.
Issued after zoning, building, fire approvals.
Comply with Sec. 21.11 of zoning code (max size, illumination limits).
Verify extinguishers, exits, occupancy load per IFC 2021 adopted locally.
Required for assembly/business occupancies per code.
Required for all LLCs. Annual report required separately (see below).
Applies to all LLCs formed in Kentucky.
Registration valid for 5 years; renewal required.
Prerequisites: 1,500 hours training at approved school + passing exam (written 70%, practical 75%). Applies to barbers providing haircutting/shaving services.
Prerequisites: 1,000 hours training + passing exam. Required if offering cosmetology beyond basic barbering.
Shop must have licensed manager (Barber I or Cosmetologist); inspections required. Meets sanitation standards per 201 KAR 12:060.
Required if shop provides cosmetology services; licensed manager required.
6% sales tax rate. Form 51A200-SR01 online via Kentucky Taxpayer Portal.
Required for employers; quarterly/annual filings.
Barber and cosmetology services are generally exempt from Kentucky sales tax. However, if the business sells tangible personal property (e.g., shampoos, conditioners, clippers), a sales tax permit is required. Registration is done via the Kentucky Business One Stop Portal: https://onestop.ky.gov
Required for all employers in Kentucky who withhold state income tax from employee wages. Must register via Kentucky Business One Stop: https://onestop.ky.gov. Applies to LLCs with employees regardless of industry.
All employers with employees in Kentucky must register with the Office of Unemployment Insurance. Registration is completed via the Kentucky Business One Stop Portal. Governed by KRS Chapter 341. LLCs without employees are not required to register.
All LLCs doing business in Kentucky must pay the Limited Liability Entity Tax (LLET), regardless of revenue or activity level. This is Kentucky's version of a franchise tax. First payment due by June 30 following formation. File via Kentucky Department of Revenue: https://revenue.ky.gov/Taxes/Pages/LLET.aspx
Some Kentucky cities (e.g., Louisville, Lexington) impose a local business license or privilege tax. For example, Louisville requires a Business Occupation License: https://louisvilleky.gov/government/licensing/business-licenses. No statewide local tax; must check municipal code of jurisdiction. Contact local clerk for requirements.
Requires completion of approved training program and passing exam. Must be renewed every two years. LLC owners operating as barbers/cosmetologists must hold individual licenses.
Required for all businesses; cosmetology shops fall under retail/services category. See fee schedule at https://louisvilleky.gov/sites/default/files/2024-01/Business_License_Fee_Schedule.pdf (effective 2024).
Applies to all occupations; cosmetology included. Rates per KRS 67.083.
Barber/cosmetology typically allowed in commercial zones. Application via https://louisvilleky.gov/government/landmarks-form-review.
Cosmetology allowed if <25% floor area used, no employees. Specific standards in Louisville Metro Code Sec. 21.10.
Required for plumbing/electrical changes common in salons. Fee schedule: https://louisvilleky.gov/sites/default/files/2023-07/2023_Fee_Schedule.pdf.
All U.S. employers must verify identity and work authorization for employees using Form I-9. Applies to all employees, including citizens. Employers must retain completed forms for three years after hire or one year after employment ends, whichever is later.
The FDA regulates cosmetics and devices used in barber shops. Cosmetics must be safe and properly labeled. Devices such as hair clippers are Class I devices and generally exempt from premarket approval but must be registered if manufactured or distributed. Salon owners are not typically manufacturers, but must use FDA-compliant products. The FDA does not approve cosmetic ingredients pre-market but can take action against unsafe products.
Renewal must be completed before the expiration date shown on the individual’s license. The renewal includes payment of the fee and submission of continuing‑education documentation.
12 CE hours required every two years for both barbers and cosmetologists, including at least 2 hours of health & safety. CE can be earned through approved state‑registered courses or online programs.
Inspectors verify compliance with Kentucky Administrative Regulation (KAR) 311‑030‑020 (sanitation standards).
Fire inspection verifies egress, fire extinguishers, and electrical safety.
All businesses; cosmetology under service category. Fee schedule linked on page.
Annual inspection for compliance with state regs.
Kentucky law requires all employers with one or more employees to carry workers' compensation insurance. Sole proprietors and partners may elect out, but must file a formal waiver (Form WC-1A). LLC members are not automatically exempt and may need to formally exclude themselves. Coverage includes medical treatment and wage replacement for work-related injuries.
While not mandated by Kentucky state law, general liability insurance is strongly recommended and often required by landlords, lenders, or franchisors. It covers third-party bodily injury, property damage, and personal injury claims (e.g., slip-and-fall incidents).
Not mandated by Kentucky law or the Kentucky Board of Cosmetology. However, it is strongly recommended for cosmetology professionals to protect against claims of negligence, improper service, or allergic reactions. Some landlords or management contracts may require proof of coverage.
A $10,000 surety bond is required for all cosmetology establishments licensed by the Kentucky Board of Cosmetology. The bond protects clients against financial loss due to violations of state cosmetology laws. The bond must be issued by a surety company licensed in Kentucky and filed with the Board.
If the LLC elects partnership taxation, it must file Form 765 annually.
Only applicable if the LLC elects to be taxed as a corporation.
Even if no sales tax is collected, a “zero” return must be filed for the reporting period.
LLC taxed as partnership files Form 1065; if elected corporate tax treatment, file Form 1120.
Includes Social Security, Medicare, and federal income tax withholding.
Employers must maintain continuous coverage; report any change in payroll within 30 days.
Records include timecards, wage statements, tax filings, and workers’ comp reports.
Logs must detail each client’s service, tools used, and disinfection steps.
Required posters include: Kentucky Minimum Wage, Unemployment Insurance, Workers’ Compensation, OSHA (OSHA 300 Log notice), and Federal posters (FLSA, EEOC, etc.).
Both the business (city/county) license and each individual practitioner’s barber/cosmetology license must be posted.
The report includes the number of licensed practitioners, services offered, and any changes in ownership.
Kentucky law requires all vehicles used for business purposes to carry commercial auto insurance meeting minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, and $25,000 for property damage. Personal auto policies do not cover business use.
Kentucky does not mandate product liability insurance. However, businesses selling beauty or grooming products should carry coverage to protect against claims of defective or harmful products. This is typically included in broader general liability or commercial liability policies.
Liquor liability insurance is required for any business holding a liquor license in Kentucky. Since barbershops typically do not serve alcohol, this does not apply unless the business operates a bar or lounge area. Coverage protects against claims arising from alcohol-related incidents, such as intoxication or accidents.
While not all LLCs need an EIN, it is required if the business has employees or files employment, excise, or alcohol/tobacco/firearms taxes. A single-member LLC with no employees may use the owner’s SSN, but obtaining an EIN is recommended for liability separation. This is a federal requirement applicable to all business structures, but mandatory for barber shops with employees.
A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C (Form 1040). Multi-member LLCs file as a partnership (Form 1065). All owners must pay self-employment tax on net earnings. This applies to all sole proprietors and LLCs, including barber shops.
Applies to all employers with employees. Barbershops must provide a safe workplace, including proper handling of bloodborne pathogens (29 CFR 1910.1030), use of personal protective equipment (PPE), and accessible Material Safety Data Sheets (now Safety Data Sheets) for chemicals (e.g., hair dyes, disinfectants). OSHA requires training on hazardous chemicals under the Hazard Communication Standard (HCS). Even small shops must comply if they have employees.
All businesses open to the public, including barber shops, must comply with the Americans with Disabilities Act (ADA). This includes accessible entrances, restrooms (if provided), and service counters. Websites must also be accessible if they provide services. While full structural changes are only required when "readily achievable," all discriminatory practices are prohibited. This is not industry-specific but applies to all public-facing businesses.
Most barber shops generate minimal hazardous waste and are classified as Conditionally Exempt Small Quantity Generators (CESQG), producing less than 220 lbs per month. They are exempt from most federal hazardous waste regulations if they do not accumulate more than 2,200 lbs at any time. However, proper disposal of chemicals (e.g., not pouring down drains) is required. EPA does not typically regulate typical salon chemicals unless they are listed as hazardous.
The FTC Act prohibits deceptive or unfair business practices. Barber shops must ensure advertising (e.g., pricing, services, "chemical-free" claims) is truthful and not misleading. If offering promotions or discounts, terms must be clear. Applies to all businesses, including small service providers. The FTC also enforces the Telemarketing Sales Rule if the business uses phone marketing.
FLSA requires payment of at least federal minimum wage ($7.25/hour) and overtime (1.5x regular rate) for hours over 40 per week. Applies to all employees in barber shops. Independent contractors must meet strict IRS and DOL criteria to avoid misclassification. Employers must maintain accurate time and payroll records for at least three years.
FMLA requires covered employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Most small barber shops do not meet the 50-employee threshold and are exempt. However, if the business grows or operates as part of a larger network, this may apply.
No, there is no Federal License required for barbering or cosmetology services; however, you must still adhere to all other applicable federal regulations like those from the FTC and IRS.
ADA compliance means ensuring your business is accessible to individuals with disabilities, which may include physical access, accessible restrooms, and website accessibility. Fees can range from $200.00 to $5000.00 depending on necessary modifications.
The fees associated with FTC compliance vary depending on the specific regulations and any potential enforcement actions. It’s best to consult the FTC website for current guidance and potential costs.
An Employer Identification Number (EIN) is a unique tax identification number assigned by the IRS to businesses. It's required for LLCs and businesses that hire employees, even if you don't have employees currently.
As an LLC owner, you'll have federal income and self-employment tax obligations, which can be substantial, potentially reaching $160440.00. It’s crucial to understand these obligations and file accurately with the IRS.
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