Barber / Cosmetology Permits & Licenses in Butte, MT

Required for all LLCs. Annual report required separately (see below).

Applies to all LLCs regardless of industry.

1,500 hours education or equivalent apprenticeship required. Exam (written + practical) mandatory. Required for all cosmetology services.

1,500 hours education or apprenticeship. Separate license if offering barbering services (haircutting, shaving).

Required for barber/cosmetology shop or salon. Must have licensed manager/owner. Inspections required.

Not required if using exact LLC legal name. Renews automatically unless cancelled.

Required for LLCs with employees for state income tax withholding.

Barber and cosmetology services are generally exempt from Montana sales tax. However, if the business sells tangible personal property (e.g., shampoos, conditioners, combs), a sales tax license is required. Registration is done through the Montana Department of Revenue's online portal.

Required for any business that withholds state income tax from employee wages. Applies even if only one employee is hired. Registration is completed online via the Montana Department of Revenue.

Employers must register with the Montana Unemployment Insurance program if they pay wages of $1,500 or more in a calendar year or have at least one employee for 20 weeks in a year. New employers are assigned a standard rate; rates vary after experience rating.

Montana does not impose a franchise tax or gross receipts tax. However, LLCs are pass-through entities; income flows to owners' personal tax returns. The business must file Form IT-705 (Partnership/LLC Return) annually if it has income sourced in Montana, even if no tax is due. This is an informational return.

Montana does not have a statewide business license. However, many cities (e.g., Billings, Missoula, Bozeman, Great Falls) require a local business license or privilege tax for operating within city limits. Requirements and fees vary. Contact the city clerk or finance department for specific rules. Example: Billings requires a Business License Application at https://www.billingsmt.gov/business-license.

Required for all LLCs, regardless of employee status. Used for federal tax reporting, including income, employment, and excise taxes. Apply online at IRS.gov. Not a tax itself, but a prerequisite for tax compliance.

Records include timecards, wage statements, tax filings, and UI reports.

Barbers may be exposed to blood via nicks or cuts. Employers must develop an Exposure Control Plan, provide PPE, offer hepatitis B vaccination, and train employees annually. Required under 29 CFR 1910.1030.

Requires physical accessibility (e.g., door widths, counter heights), policy modifications (e.g., allowing service animals), and effective communication with people with disabilities. Applies to new construction and existing facilities (with "readily achievable" barrier removal required).

While most barbering waste is non-hazardous, some products (e.g., certain disinfectants, mercury-containing devices) may be regulated. If using mercury-containing devices (now rare), proper disposal under RCRA is required. Most barbershops qualify as Conditionally Exempt Small Quantity Generators (CESQG) if producing <220 lbs hazardous waste/month.

Applies to all businesses. Prohibits deceptive or unsubstantiated claims in advertising (e.g., "guaranteed hair growth" without evidence). Endorsements must reflect honest opinions and disclose material connections. Relevant for online ads, social media, and promotional materials.

All U.S. employers must verify identity and work authorization for each employee using Form I-9. Employers must retain forms for 3 years after hire or 1 year after employment ends, whichever is later. ICE may conduct audits.

Requires payment of federal minimum wage ($7.25/hour as of 2024) and overtime (1.5x regular rate for hours over 40/week). Tipped employees (e.g., assistants) may be paid a lower direct wage if tip credit is applied correctly. Independent contractor classification must comply with DOL rules.

Most small barber shops will not meet the 50-employee threshold. If threshold is met, eligible employees must be granted up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons.

All businesses in Montana must file a BPP return annually if they own property used in operations. This includes equipment, furniture, and inventory. Filed electronically via Revenue Online. Even home-based or mobile operators must comply if they own taxable property.

Required for all businesses; cosmetology/barber shops listed under retail/services. See fee schedule at linked page.

Applies to businesses outside city limits; barber/cosmetology not exempt.

Must verify property zoned for personal services; home occupation permit separate for residences.

Barber/cosmetology allowed if no more than 1 non-resident employee; no external signage.

Required for sinks, plumbing, or salon stations; see 2021 International Building Code adopted locally.

Max size 1.5 sq ft per linear foot of building frontage; LED allowed with restrictions.

Barber shops typically require 2 exits, extinguishers; flammable products trigger review.

Verifies zoning, building, fire compliance; change from retail to salon may trigger.

Barber shops under threshold usually exempt unless sprinklers required.

Mandatory for all employers with one or more employees under Montana Code Annotated (MCA) 39-71-411. Sole proprietors without employees are not required to carry coverage but may elect to be covered. Barbers who are independent contractors and not employees may not be counted.

Not legally required by the State of Montana for barbers or cosmetology businesses. However, landlords, lenders, or shopping centers may require proof of general liability insurance as a condition of leasing or contracting. Strongly recommended for protection against slip-and-fall or property damage claims.

Not legally required by Montana state law. However, it is strongly recommended to cover claims related to negligence, allergic reactions, or improper procedures. No statutory mandate exists under MCA Title 37 or administrative rules of the Board.

Barber shops (establishments) must be licensed by the Montana Board of Barber and Cosmetology. While a surety bond is not explicitly required, the shop must designate a licensed manager and post a $1,000 bond OR provide a $1,000 certificate of deposit OR a $1,000 cash deposit as a financial responsibility requirement under ARM 24.150.205. This is effectively a security deposit, not a traditional surety bond. Individual barbers are not required to post bonds.

FDA regulates cosmetics used in barbering (e.g., dyes, straightening products). Products must be safe and properly labeled. Prohibits use of adulterated or misbranded cosmetics. No pre-market approval required, but adverse events must be reported under the Modernization Act (MoCRA) for certain products.

MoCRA requires cosmetic manufacturers to register facilities and list products with FDA. Most barbers who only use pre-formulated products are not required to register. However, if custom mixing or formulation occurs on-site, registration may be required. Adverse event reporting (for serious events) is mandatory.

All barbers must hold a current Montana barber license. Shop owners must employ only licensed individuals. The board conducts inspections and can issue cease-and-desist orders.

Employers must register and report quarterly. Misclassification of workers can trigger audits and back payments.

Required by law for all employees. Independent contractors are not covered, but misclassification risks penalties.

Renewal must be submitted online; proof of required continuing education must be attached.

Renewal must be submitted online; proof of required continuing education must be attached.

Barbers must complete 6 CE hours every two years; courses must be approved by the Board.

Cosmetologists must complete 12 CE hours every two years; courses must be approved by the Board.

Inspection covers sanitation, sterilization, and facility conditions. Schedule through the local health department.

Check with the city or county fire marshal for specific schedule and any required fire extinguishers or signage.

Use Form 15‑ES for estimated payments. Adjustments may be required if income changes.

Attach Schedule K‑1s for members if taxed as partnership.

Register for a sales tax license (MT-1) before commencing sales.

File UI wage reports electronically via the UI Online system.

Required under Montana Code Annotated 61-6-103 for all motor vehicles operated in Montana. Applies if the LLC owns or leases a vehicle used for business (e.g., mobile barber services). Personal auto policies typically exclude business use.

Not legally required by Montana law. However, businesses selling retail products (e.g., shampoos, conditioners) assume liability under federal product liability law (e.g., Magnuson-Moss Warranty Act). While no insurance mandate exists, failure to carry coverage may expose the business to lawsuits. Recommended but not required.

Only applicable if the barber shop holds a liquor license (e.g., for a lounge area). Most barber shops do not serve alcohol. If alcohol is sold, the ABC requires proof of liquor liability insurance as a condition of licensing under ARM 42.5.101. Not relevant for standard barber operations.

Not required by Montana state law, but almost always required by commercial landlords. Covers damage to shop interior, equipment, and inventory from fire, theft, or vandalism. Often bundled with general liability in a Business Owner’s Policy (BOP).

While not all single-member LLCs without employees need an EIN, most will require one to open a business bank account or hire staff. Cosmetology businesses often hire contractors or employees, making EIN necessary.

A single-member LLC is treated as a disregarded entity for federal tax purposes and reports income on Schedule C of Form 1040. Multi-member LLCs are taxed as partnerships. All net income is subject to self-employment tax unless structured otherwise.

OSHA does not have specific standards for barbershops, but the General Duty Clause (Section 5(a)(1) of the OSH Act) requires employers to provide a workplace free from recognized hazards. This includes exposure to bloodborne pathogens, chemical hazards (e.g., disinfectants), and ergonomic risks. Compliance with Bloodborne Pathogens Standard (29 CFR 1910.1030) is strongly recommended if employees handle sharp instruments or blood-contaminated materials.

Changes are submitted via IRS Form SS‑4 or online.

Use Form 1040‑ES for individuals; Form 1120‑W for corporations.

Attach Schedule K‑1s for each member.

Required posters include Minimum Wage, Workers’ Compensation, OSHA, and Unemployment Insurance.

Include the “OSHA Job Safety and Health: It’s the Law” poster.

Board requires a list of all active barber and cosmetology licenses employed at the establishment.

Renewal is typically due on the same date as the state license renewal.

Coverage is obtained through a private insurer or the state fund.

Use the MT Withholding Tax Electronic Filing System (e‑File).