Complete guide to permits and licenses required to start a barber / cosmetology in Minneapolis, MN. Fees, renewal cycles, and agency contacts.
Renewal must be completed online through the DLI portal. Proof of continuing‑education may be required.
Barbers must complete 6 CE hours (including 2 hours of safety & sanitation) every two‑year renewal period.
Board conducts random inspections to verify compliance with health, safety, and sanitation standards.
Limited to 25% of home space; no salon chairs/equipment storage allowed
Renewal required every 10 years for $30 (online). Applies if LLC uses DBA.
Required for all LLCs. Annual renewal report due by December 31 each year ($0 fee if filed online).
All active LLCs must file. Online filing recommended.
Prerequisites: 1,560 hours education or apprenticeship; pass written/practical exams. Updated fees effective 2023.
Prerequisites: 1,550 hours education; pass exams. Salon may require multiple licenses.
Prerequisites: Hold barber/cosmetologist license + 1 year experience; pass exam. Required for salon operators.
Must have licensed manager on file. Inspections required. Fee schedule updated 2023.
Required for collecting 6.875% sales tax on retail product sales. File via Minnesota Business Gateway.
Quarterly returns required. Register via Revenue Online.
New employer rate 2024: 9.5% on first $40,000 per employee.
Most Minnesota cities require a local business license or occupational tax permit for brick-and-mortar salons. Check with your city’s finance or licensing department. Not a state requirement, but often mandatory.
Required for all businesses selling taxable goods or services in Minnesota. Barbers and cosmetologists must collect sales tax on taxable services (e.g., haircuts, hair coloring) and retail products (e.g., shampoos, conditioners). Effective July 1, 2023, Minnesota treats certain cosmetology services as taxable if they involve 'treatment for appearance enhancement.'
Mandatory for businesses with employees. Requires withholding state income tax from employee wages and remitting it to the state. Filing frequency (monthly or quarterly) depends on the amount withheld.
All employers in Minnesota must register for unemployment insurance tax. Rate is based on employer’s experience rating. New employers are assigned a standard rate (typically 1.2% in 2024).
Most LLCs in Minnesota are pass-through entities and not subject to franchise tax. However, if the LLC elects corporate taxation, it may be liable. Barbershop LLCs structured as pass-throughs are typically exempt. Confirmed via MN Statute 290.06 and 290.061.
Many Minnesota cities require a local business license or privilege tax for barbershops. Examples: Minneapolis (https://www.minneapolismn.gov/business/license-permits/), St. Paul (https://www.stpaul.gov/departments/finance/finance-operations/business-licenses). Requirements and fees vary; must check with city clerk.
Required for all LLCs, even single-member LLCs without employees, because LLCs are separate legal entities. Used for federal tax reporting, banking, and licensing.
Minnesota does not impose an occupational privilege tax on barbers or cosmetologists. Services are subject to sales tax, but no separate profession-specific tax exists. Confirmed via MN Statutes Chapter 297A and DOR guidance.
Local sales tax is automatically administered through the Minnesota Department of Revenue. Barbershops must collect both state (6.875%) and applicable local rates (e.g., +0.5% in Minneapolis). No separate registration required beyond state sales tax permit.
Required for all businesses; barber/cosmetology shops fall under general business license category
No general county business license; handled by individual municipalities
Must verify property zoned for personal services (C1-C4 districts typically allow)
Required for sink installations, ADA modifications, electrical work
Wall signs max 1.5 sq ft per linear ft of building frontage
Required for assembly/personal service occupancies >50 occupants
Local health verifies state sanitation compliance
4 false alarms = permit suspension
Included as example for other MN cities; requirements vary significantly by municipality
Complements state Board of Cosmetology licensing
Required for all employers with one or more employees in Minnesota, including part-time and family members over 18. Sole proprietors without employees are exempt from mandatory coverage but may elect to cover themselves. Barbers are classified under NAICS 812112 (Personal Care Services) with risk code 0918.
Not legally required by Minnesota state law or the Minnesota Board of Cosmetology. However, landlords, lenders, or professional associations may require it. Strongly recommended for protection against third-party injury or property damage claims.
Not required by Minnesota law or the Board of Cosmetology. However, it is strongly recommended to cover claims of negligence, mistakes, or unsatisfactory services. Often included in broader liability policies.
A $10,000 surety bond is required for all cosmetology establishments (salons), including barber shops, licensed under Minnesota Rules, part 1550.0100. The bond ensures compliance with state laws and regulations. Not required for individual barber licenses, only for the business location. Source: MN Rule 1550.0100, subp. 2.
Required for any vehicle owned or operated by the business. Minnesota law mandates minimum liability coverage of $30,000 bodily injury per person, $60,000 per accident, and $10,000 for property damage (30/60/10). Applies regardless of industry.
Not legally required by Minnesota or federal law. However, businesses selling cosmetic products (e.g., hair care items) may face liability for defective or harmful products. Recommended but not mandated. FDA regulates product safety but does not require insurance.
Not required unless alcohol is served or sold on premises. Most barbershops do not serve alcohol. If alcohol is served, the Minnesota Alcohol and Gambling Enforcement Division (AGED) may require liquor liability insurance as part of licensing. Not applicable to standard barber/cosmetology operations.
Duplicate of "Surety Bond (License Bond)" but listed with official name. Required under Minnesota Rules Chapter 1550.0100 for all licensed establishments. The bond protects consumers against violations of state law by the salon. Must be issued by a surety company authorized in Minnesota.
Required for any LLC that files a tax return, opens a bank account, or has employees.
Single‑member LLCs report on Schedule C of Form 1040; multi‑member LLCs file Form 1065.
Barber shops typically have fewer than 10 employees, but if the LLC grows beyond that threshold, recordkeeping becomes mandatory.
Requirements include accessible parking, entry, restroom, and service‑area modifications.
Most barber shops use low‑hazard chemicals, but if using regulated substances (e.g., certain peroxide or ammonia concentrations), SQG rules apply.
Retail sale of pre‑manufactured cosmetics does not require a license, but labeling must comply with FDA regulations.
All promotional materials (signage, online ads, social media) must be truthful and not deceptive.
Form I‑9 must be retained for 3 years after hire or 1 year after termination, whichever is later.
Includes minimum wage, overtime, record‑keeping, and child‑labor rules.
Many small barber shops will not meet the employee threshold, but the requirement is noted for completeness.
No fee for on‑time filing. Must be filed electronically via the Secretary of State’s portal.
Check with the specific city or county fire marshal for exact schedule and fees.
LLCs taxed as partnerships file Form M4 (Partnership). If elected to be taxed as a corporation, file the corporate version of Form M4.
If the LLC has elected corporate taxation, use Form 1120; otherwise use Form 1065.
Both federal and Minnesota estimated taxes are due on the same dates.
Registration for sales tax is required before making taxable sales.
Report wages and UI taxable wages for each employee.
Employers may elect to pay quarterly; in that case, payments are due on the same schedule as UI reports.
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Required posters include Minimum Wage, Workers’ Compensation, Unemployment Insurance, and OSHA rights.
Many Minnesota cities (e.g., Minneapolis, St. Paul, Rochester) require a local business license in addition to state licensing.
Check with the specific county or city health department for exact requirements.
Many landlords and the Board of Cosmetology require proof of $1M per occurrence liability coverage.
ADA compliance ensures your business is accessible to individuals with disabilities, covering aspects like physical access, communication, and services. The Department of Justice enforces these regulations, and non-compliance can lead to penalties, with potential fees ranging from $200.00 to $5000.00.
Yes, the Federal Trade Commission (FTC) has rules regarding truth-in-advertising and consumer protection that apply to all businesses, including barber and cosmetology services. These rules cover things like accurate pricing, honest claims, and clear disclosures, and fees vary depending on the situation.
An Employer Identification Number (EIN) is a unique tax ID number assigned by the Internal Revenue Service (IRS) to businesses operating in the U.S. If you plan to hire employees or operate as a corporation or partnership, you will likely need to obtain an EIN; it is free to obtain.
The Internal Revenue Service requires you to keep records related to taxes and licenses for at least three years, but it’s often recommended to keep them for longer. Proper record retention helps you demonstrate compliance during an audit and can protect you from penalties.
If you operate as an LLC, you're generally required to pay self-employment taxes on your profits, in addition to federal income tax. The IRS has specific rules and forms for LLCs, and the amount you owe will depend on your income and deductions; fees vary.
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