Barber / Cosmetology Permits & Licenses in Great Falls, MT

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

Montana Business Personal Property (BPP) Tax Filing

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

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.

City Business License

City of Billings
May Apply
Fee: $50.00-$200.00
Renewal: annual
Type: license

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

Montana LLC Articles of Organization Filing

Montana Secretary of State
Required
Fee: $70.00-$70.00
Renewal: one time
Type: registration

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

Montana LLC Annual Report

Montana Secretary of State
Required
Fee: $20.00-$20.00
Renewal: annual
Type: registration

Applies to all LLCs regardless of industry.

Cosmetologist License

Montana Board of Barbers and Cosmetologists
Required
Fee: $110.00-$110.00
Renewal: biennial
Type: license

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

Barber License

Montana Board of Barbers and Cosmetologists
Required
Fee: $110.00-$110.00
Renewal: biennial
Type: license

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

Establishment License

Montana Board of Barbers and Cosmetologists
Required
Fee: $150.00-$150.00
Renewal: annual
Type: license

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

County Business License

Yellowstone County
May Apply
Renewal: one time
Type: license

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

Zoning Compliance Verification

City of Billings Planning Division
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: permit

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

Home Occupation Permit

City of Billings
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: permit

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

Building Permit

City of Billings
May Apply
Fee: $75.00-$75.00
Renewal: one time
Type: permit

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

Assumed Business Name (DBA) Registration

Montana Secretary of State
May Apply
Fee: $20.00-$20.00
Renewal: annual
Type: registration

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

Withholding Account Registration (if employees)

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

Required for LLCs with employees for state income tax withholding.

Montana Sales and Use Tax License

Montana Department of Revenue
May Apply
Fee: $15.00-$15.00
Renewal: one time
Type: registration

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.

Montana Employer Withholding Tax Registration

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

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.

Montana Unemployment Insurance Tax Registration

Montana Department of Public Health & Human Services (DPHHS), Taxation Division
May Apply
Renewal: one time
Type: registration

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 Corporate Income Tax / Pass-Through Entity Reporting

Montana Department of Revenue
Required
Renewal: one time
Type: registration

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.

Local Business License or Privilege Tax

Local City or County Government
May Apply
Fee: $25.00-$100.00
Renewal: one time
Type: registration

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.

Federal Employer Identification Number (EIN)

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

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.

Employee Payroll Record Retention

Montana Department of Labor & Industry
May Apply
Renewal: one time
Type: permit

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

Bloodborne Pathogens Standard (OSHA)

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

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.

ADA Title III compliance for public accommodations

Department of Justice (DOJ)
May Apply
Fee: $0.00-$5000.00
Renewal: one time
Type: permit

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).

EPA regulations on mercury-containing waste from salon tools

Environmental Protection Agency (EPA)
May Apply
Fee: $0.00-$500.00
Renewal: one time
Type: permit

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.

FTC guidelines on advertising and consumer protection

Federal Trade Commission (FTC)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

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.

Form I-9 Employment Eligibility Verification

U.S. Department of Homeland Security (DHS)
May Apply
Renewal: one time
Type: permit

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.

Sign Permit

City of Billings
May Apply
Fee: $50.00-$200.00
Renewal: one time
Type: permit

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

Fire Inspection Certificate

Billings Fire Department
May Apply
Fee: $100.00-$100.00
Renewal: annual
Type: permit

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

Certificate of Occupancy

Missoula Building Division
May Apply
Renewal: one time
Type: permit

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

Fair Labor Standards Act (FLSA) wage and hour compliance

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

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.

Family and Medical Leave Act (FMLA) Compliance

Wage and Hour Division, U.S. Department of Labor
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

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.

FDA regulation of cosmetics and salon products

Food and Drug Administration (FDA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

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 (Modernization of Cosmetics Regulation Act) compliance

Food and Drug Administration (FDA)
May Apply
Fee: $0.00-$500.00
Renewal: one time
Type: permit

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.

Montana Barber License & Shop Registration

Montana Board of Barbers and Cosmetologists
Required
Fee: $100.00-$300.00
Renewal: one time
Type: permit

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.

Montana Unemployment Insurance Tax

Montana Department of Labor & Industry
May Apply
Renewal: one time
Type: filing

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

Montana Workers’ Compensation Insurance

Montana Department of Labor & Industry
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

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

Barber License Renewal

Montana Department of Labor & Industry – Cosmetology Board
Required
Fee: $30.00-$30.00
Renewal: annual
Type: license

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

Cosmetology License Renewal

Montana Department of Labor & Industry – Cosmetology Board
Required
Fee: $45.00-$45.00
Renewal: annual
Type: license

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

Continuing Education for Barbers

Montana Department of Labor & Industry – Cosmetology Board
Required
Fee: $50.00-$50.00
Renewal: biennial
Type: certificate

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

Continuing Education for Cosmetologists

Montana Department of Labor & Industry – Cosmetology Board
Required
Fee: $100.00-$100.00
Renewal: biennial
Type: certificate

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

Annual Health Inspection of Salon/Barber Shop

Montana Department of Public Health & Human Services – Environmental Health Division
Required
Fee: $50.00-$50.00
Renewal: annual
Type: permit

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

Fire Safety Inspection (Local Requirement)

Local Fire Department (varies by city/county)
May Apply
Fee: $0.00-$0.00
Renewal: annual
Type: permit

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

Montana State Income Tax Estimated Payments (for LLC taxed as partnership or corporation)

Montana Department of Revenue
May Apply
Renewal: varies
Type: permit

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

Montana Annual Income Tax Return (Form 15 or 15‑S)

Montana Department of Revenue
May Apply
Renewal: annual
Type: filing

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

Montana Sales and Use Tax Return (if selling taxable goods)

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

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

Unemployment Insurance (UI) Contributions

Montana Department of Labor & Industry – Unemployment Insurance Division
May Apply
Renewal: varies
Type: permit

File UI wage reports electronically via the UI Online system.

Fire Alarm Permit

Bozeman Fire Department
May Apply
Fee: $50.00-$50.00
Renewal: annual
Type: permit

Barber shops under threshold usually exempt unless sprinklers required.

Workers' Compensation Insurance

Montana Department of Labor & Industry, Workplace Safety Division
May Apply
Fee: $1.36-$1.36
Renewal: one time
Type: certificate

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.

General Liability Insurance

None (not state-mandated)
Required
Fee: $400.00-$1500.00
Renewal: one time
Type: certificate

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.

Professional Liability / Errors and Omissions Insurance

Montana Department of Public Health and Human Services (DPHHS)
Required
Fee: $500.00-$1200.00
Renewal: one time
Type: certificate

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.

Surety Bond (License Bond)

Montana Department of Commerce, Business Services Division
May Apply
Renewal: one time
Type: certificate

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.

Commercial Auto Insurance

Montana Department of Justice, Motor Vehicle Division
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

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.

Product Liability Insurance

None
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

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.

Liquor Liability Insurance

Montana Department of Revenue, Alcohol Beverage Control Division
May Apply
Fee: $500.00-$3000.00
Renewal: one time
Type: certificate

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.

Commercial Property Insurance

Montana Department of Revenue; Local County Health and Zoning Authorities
May Apply
Fee: $1000.00-$5000.00
Renewal: one time
Type: certificate

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).

Obtain an Employer Identification Number (EIN)

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

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.

Montana Withholding Tax Deposits (if payroll)

Montana Department of Revenue – Withholding Tax Division
May Apply
Renewal: varies
Type: permit

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

Federal Employer Identification Number (EIN) Renewal/Update

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

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

Federal Quarterly Estimated Tax Payments (if LLC taxed as partnership with net earnings)

Internal Revenue Service (IRS)
May Apply
Renewal: varies
Type: permit

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

Federal Annual Income Tax Return (Form 1065 for partnership or Form 1120 for corporation)

Internal Revenue Service (IRS)
May Apply
Renewal: annual
Type: filing

Attach Schedule K‑1s for each member.

Labor Law Posters (Federal & State)

Montana Department of Labor & Industry
May Apply
Renewal: one time
Type: permit

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

OSHA Workplace Safety Poster (Federal)

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

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

Annual Report to Montana Cosmetology Board (Licensee List)

Montana Department of Labor & Industry – Cosmetology Board
Required
Renewal: annual
Type: filing

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

City/County Business License

Missoula City Clerk
May Apply
Fee: $75.00-$75.00
Renewal: annual
Type: license

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

Workers’ Compensation Coverage

Montana Department of Labor & Industry – Workers’ Compensation Division
May Apply
Renewal: one time
Type: certificate

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

Federal income and self-employment tax obligations for LLC

Internal Revenue Service (IRS)
Required
Fee: $160200.00-$160200.00
Renewal: one time
Type: filing

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 General Duty Clause compliance for workplace safety

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

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.

Step-by-Step Compliance Guide

  1. Begin by confirming that no Federal License is required for barbering or cosmetology services in Great Falls, MT, as determined by the U.S. Department of Commerce and Small Business Administration.
  2. Ensure your business adheres to FTC Compliance with Advertising and Consumer Protection guidelines, as enforced by the Federal Trade Commission.
  3. Maintain meticulous Record Retention for Tax and Licensing Purposes as required by the Internal Revenue Service to avoid penalties.
  4. Address ADA Compliance for Public Accommodations, with potential costs ranging from $200.00 to $5000.00, as mandated by the Department of Justice.
  5. Comply with FTC Enforcement of Truth-in-Advertising and Consumer Protection rules, overseen by the Federal Trade Commission.
  6. If applicable, Obtain an Employer Identification Number (EIN) from the Internal Revenue Service for your business.
  7. Understand and fulfill Federal Income and Self-Employment Tax Obligations for LLCs, which may involve a significant fee of $160440.00 as determined by the IRS.
  8. Follow FTC Guidelines on Advertising and Consumer Protection to ensure all marketing materials are legally sound.

Common Mistakes to Avoid

  • Failing to comply with ADA regulations can result in substantial fines and legal action from the Department of Justice.
  • Ignoring FTC advertising guidelines can lead to cease and desist orders and financial penalties.
  • Neglecting to obtain an EIN when required by the IRS can delay business operations and incur penalties.
  • Incorrectly calculating and filing federal income and self-employment taxes can result in audits and interest charges.
  • Poor record-keeping for tax purposes can lead to difficulties during an IRS audit and potential loss of deductions.

Frequently Asked Questions

What is the cost of ADA compliance?

ADA compliance costs can vary significantly, ranging from $200.00 to $5000.00 depending on the necessary modifications to your Great Falls business to ensure accessibility for individuals with disabilities, as determined by the Department of Justice.

Does the FTC regulate advertising for barber and cosmetology businesses?

Yes, the Federal Trade Commission (FTC) has strict guidelines regarding advertising and consumer protection that apply to all businesses, including barber and cosmetology services in Great Falls, MT. These rules ensure truth in advertising and fair business practices.

Is an EIN always required for a barber or cosmetology business?

An Employer Identification Number (EIN) is required from the Internal Revenue Service if your barber or cosmetology business in Great Falls has employees, operates as a corporation or partnership, or files certain types of tax returns.

What are the consequences of not retaining proper tax records?

The Internal Revenue Service requires diligent record retention for tax and licensing purposes; failure to maintain these records can lead to penalties, difficulties during audits, and the potential loss of valuable tax deductions for your Great Falls business.

What is the range of fees associated with FTC compliance?

The fees associated with FTC compliance vary depending on the specific requirements and any enforcement actions taken by the Federal Trade Commission; it's important to stay informed about current guidelines to avoid potential costs for your Great Falls business.

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