Complete guide to permits and licenses required to start a nail salon in Grand Forks, ND. Fees, renewal cycles, and agency contacts.
Verifies compliance with building, fire, zoning codes
Monitored systems required in most urban areas
Limited to 25% of home space; no walk-in clients in residential zones
All employers in North Dakota, including LLCs, must carry workers' compensation insurance through the North Dakota State Fire and Police Disability and Death Fund (state fund). North Dakota is a monopolistic state for workers' comp—private insurance not allowed. Sole proprietors are not required to cover themselves unless they elect coverage.
Not legally required by North Dakota state law for nail salons, but strongly recommended due to risks of slips, falls, or client injuries. Often required by landlords or lenders. Regulated at local level in some cases (e.g., lease agreements).
Not legally required in North Dakota for nail salons. However, it is strongly recommended to cover claims of negligence, allergic reactions, or infections. No state mandate exists for beauty professionals beyond workers' comp and licensing.
Required for LLCs formed outside ND or foreign qualification; domestic LLC Articles filed similarly at $135. Renewal via annual report.
Required for all LLCs to maintain good standing.
Required for nail salons as cosmetology establishments. Must meet sanitation/inspection standards. Manicurist services fall under cosmetology.
Premises must pass Board inspection for compliance with NDCC 43-11 rules before license issuance.
Required if using trade name/DBA different from registered LLC name. Renew every 5 years for $10.
Nail salon services may be subject to 5-8% sales tax depending on locality.
Nail salons in North Dakota are required to collect and remit sales tax on taxable services and retail sales of products. As of October 1, 2023, certain personal services including nail care are subject to sales tax if the total charge exceeds $50 per customer per day. See NDCC 11-27-02 and updates at https://www.nd.gov/tax/sales-use-tax/sales-tax-on-services/
North Dakota does not require nail salon owners to obtain a surety bond as a condition of licensure or operation. The North Dakota Board of Cosmetology does not list bonding as a requirement for salon or individual licensing.
Required for any vehicle owned or operated by the business and registered in North Dakota. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $25,000 property damage. Applies only if the business owns or leases vehicles.
Not legally required by North Dakota or federal law. However, if a nail salon sells nail polishes, gels, or skincare products, it may be liable for defective or harmful products. FDA regulates cosmetics but does not require liability insurance. Strongly recommended for risk management.
Not applicable to standard nail salons. Only required if the business obtains a liquor license and serves alcoholic beverages. North Dakota does not permit self-service alcohol in salons; special licensing would be needed. Most nail salons do not serve alcohol.
While not insurance, this license is mandatory for all salons. The board requires proof of compliance with health and safety standards but does not mandate specific insurance beyond workers' comp. License must be renewed every two years.
All LLCs, even single‑member, must obtain an EIN if they have employees, elect to be taxed as a corporation, or need to open a business bank account.
LLC may elect corporate taxation (Form 8832) which changes filing deadlines to March 15 (C‑corp) or April 15 (S‑corp).
Nail salons must develop a written Exposure Control Plan, provide Hepatitis B vaccination, and train employees on safe handling of needles, lancets, and other sharps.
All chemicals in a nail salon must be labeled with identity, hazards, and manufacturer info; SDS must be accessible to employees.
Nail salons must provide accessible parking, entrance, interior circulation, and service counters as required by ADA Standards for Accessible Design.
Many nail salons generate only small quantities; if below threshold, only need to manage as non‑hazardous waste, but must still follow proper disposal.
While most VOC regulation is delegated to states, the federal Clean Air Act provides the baseline; compliance is required regardless of state implementation.
Nail salons are not required to register cosmetics, but must ensure that any products they sell or apply comply with FDA labeling and safety standards.
Claims such as “gel nails last 3 weeks” or “hypoallergenic” must be supported by competent evidence.
Even if the state minimum wage is higher, the federal FLSA sets the floor; salons must also provide required breaks where applicable.
Employers must retain I‑9 forms for 3 years after hire or 1 year after termination, whichever is later.
Most small nail salons will fall below the 50‑employee threshold, but must still monitor if they grow.
Required for all employers in North Dakota. Employers must withhold state income tax from employee wages and remit it to the state. Registration is done through the North Dakota Taxpayer Access Point (ND TAP).
All employers with employees in North Dakota must register with Job Service. New employer rate is 2.0% on taxable wages up to $10,500 per employee annually. Rate subject to change based on claims history.
North Dakota does not impose a franchise tax or gross receipts tax on LLCs or other business entities. This is not required.
Required for all LLCs, regardless of employee status. Used for federal tax reporting, including income, employment, and excise taxes. Apply online via IRS website.
Employers must withhold federal income tax, Social Security, and Medicare (FICA) from employee wages and file Form 941 quarterly. Federal Unemployment Tax (FUTA) reported annually on Form 940. EIN required.
Many cities in North Dakota (e.g., Bismarck, Fargo) require a local business license or privilege tax for nail salons. Fees and requirements vary. Check with city clerk. Example: Bismarck Business License - https://www.bismarck.org/business-licenses
Some municipalities impose an occupational privilege tax on businesses. For example, certain cities may levy a tax on personal service businesses. Confirm with local tax office. Not statewide.
Nail salons in North Dakota are not subject to state excise taxes, tourism taxes, or bed taxes. No industry-specific state-level excise taxes apply to personal care services.
Nail salons classified as personal service businesses; Fargo requires license for all commercial operations
Nail salons permitted in C-1/C-2 commercial zones; conditional use permit may be needed in some districts
State-level but inspected locally by city/county health; required for all nail salons per ND Board of Cosmetology
Common for nail salons adding pedicure stations or HVAC upgrades
Size, lighting, and placement restrictions apply universally
Required for all public assembly >50 occupants; nail salons typically need sprinklers if over 3,000 sq ft
No federal license is specifically required to operate a nail salon; compliance is limited to the standards listed above.
An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating as LLCs or corporations. You need one to file federal taxes, open a business bank account, and hire employees.
Yes, the FDA regulates cosmetics and devices used in nail services, including polishes, acrylics, and sanitizing equipment. Compliance ensures the safety of products used on customers and avoids potential penalties.
ADA Title III requires your nail salon to be accessible to individuals with disabilities, including accessible entrances, restrooms, and service stations. Costs for compliance can range from $1000 to $10000 depending on necessary modifications.
The FTC requires truthful advertising and fair business practices. This includes clearly disclosing prices, avoiding deceptive claims about services, and protecting customer data.
The Corporate Transparency Act requires many companies, including LLCs, to report beneficial ownership information to FinCEN. This aims to prevent illicit financial activity, and reporting fees may apply.
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