Barber / Cosmetology Permits & Licenses in Nashville, TN

Requires licensed manager/owner on-site; must meet sanitation/inspection standards; application includes floor plan, lease proof

Requires cosmetology/barber license + 1,000 hours teaching experience or equivalent; exam required

Required for all LLCs; annual report required separately (see below)

Filing maintains good standing; online portal available

Expires after 4 years; must reregister; county-level registration no longer required since 2012

Requires 1,500 clock hours from approved school, passing written/practical exams (TN Barber Exam), age 18+, high school diploma/GED

Requires 1,500 clock hours from approved school, passing exams, age 18+, high school diploma/GED; applies if offering cosmetology services

A $1,000 surety bond is required for barbershop licenses issued to corporations, LLCs, or partnerships. Sole proprietors are exempt from the bond requirement but must still obtain a license. Bond ensures compliance with state barbering laws.

Monthly/quarterly returns required based on revenue; cosmetology services generally nontaxable but products are

Barber and cosmetology services are generally exempt from sales tax in Tennessee, but any retail sales of products (e.g., shampoos, conditioners) are subject to sales tax. Registration is required if selling taxable goods. Applies to all businesses selling taxable tangible personal property.

Required for all employers in Tennessee. Employers must withhold state income tax from employee wages. Tennessee does not have a state income tax on wages, but employers must still register to report zero withholding if applicable.

Required for any vehicle owned by the LLC and used for business. Personal auto policies do not cover business use. Applies if transporting equipment, making house calls, or using a company vehicle.

Not mandated by Tennessee law, but highly recommended when selling physical products. General liability policies often include limited product liability coverage. Additional coverage may be needed for large-scale retail.

Only applicable if the barbershop obtains a liquor license and serves alcohol. Most barbershops do not serve alcohol; therefore, this is not typical. If applicable, a dram shop liability policy may be required.

Not mandated by state law, but commonly recommended for barbershops due to high foot traffic and property exposure. Bundles general liability, property, and business interruption coverage.

All LLCs with employees or that operate as a corporation for tax purposes must obtain an EIN. Even single-member LLCs without employees may need an EIN to open business bank accounts or comply with state requirements. Application is free via IRS Form SS-4.

Multi-member LLCs are taxed as partnerships and must file Form 1065. Single-member LLCs report income on Schedule C. If the LLC has employees, it must withhold and pay federal income tax, Social Security, and Medicare (Form 941 quarterly). Barbers providing services are not subject to federal excise tax unless selling taxable products like alcohol.

Barber shops using chemical products (dyes, disinfectants, aerosols) must maintain Safety Data Sheets (SDS), label containers, and train employees on hazardous chemicals under the Hazard Communication Standard (HCS). Even small shops are subject to inspection. No requirement for self-employed sole proprietors without employees.

Barber shops are considered 'public accommodations' under ADA Title III. Must ensure accessibility for customers with disabilities, including accessible entrances, pathways, restrooms (if provided), and service counters. Modifications only required if 'readily achievable' (easily accomplishable without much difficulty or expense). Websites must also be accessible if used for booking or information.

Most barber shops do not meet thresholds under the Emergency Planning and Community Right-to-Know Act (EPCRA) or Toxics Release Inventory (TRI). However, businesses using large volumes of chemicals like formaldehyde (in some hair straighteners) may have reporting obligations. Routine use of small quantities of disinfectants or dyes does not typically trigger federal EPA reporting.

Barber shops must ensure all advertising (online, social media, signage) is truthful and not misleading. FTC enforces against false claims (e.g., 'FDA-approved' for unapproved treatments, fake reviews). Applies to all businesses regardless of size. The FTC also enforces the 'Right to Reveal' rule, allowing clients to take photos of their own haircuts without signing waivers.

All U.S. employers, including barber shop LLCs, must complete Form I-9 for each employee to verify identity and work authorization. Employers must retain forms for 3 years after hire date or 1 year after employment ends, whichever is later. E-Verify is not federally required unless contracting with federal agencies.

Barber shops with employees must comply with FLSA: pay at least federal minimum wage ($7.25/hour), overtime at 1.5x regular rate for hours over 40/week. Tip credits do not apply to barbers (as they are not 'tipped employees' under FLSA). Independent contractor arrangements must meet strict DOL criteria to avoid misclassification penalties.

Only applies to barber shop LLCs with 50 or more employees within a 75-mile radius. Requires providing up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Most small barber shops are exempt due to size.

No general federal barber license exists. However, products used (e.g., hair dyes, relaxers) are regulated by FDA under the Federal Food, Drug, and Cosmetic Act. FDA does not approve cosmetics but prohibits adulterated or misbranded products. Formaldehyde in hair smoothing treatments must be labeled if present above 0.1%. No ATF, FCC, DOT, or DEA licenses are typically required for standard barber operations.

Required under the Corporate Transparency Act (effective January 1, 2024). All LLCs must report beneficial owners (individuals owning 25% or more or exercising substantial control) to FinCEN. Does not apply to exempt entities (e.g., public companies, banks). Report filed once, with updates within 30 days of ownership change.

All Tennessee LLCs must file an annual report with the Secretary of State. The report is due each year on the first day of the month in which the LLC was originally formed. Example: If formed on March 15, the report is due March 1 annually.

All employers who pay $1,500 or more in wages in a calendar year or who employ one or more individuals in any day of 20 or more weeks in a year must register. Applies to all employer types including LLCs.

All LLCs doing business in Tennessee are subject to franchise and excise tax unless exempt by law. The excise tax is 6.5% on net earnings; franchise tax is based on net worth or real and tangible property. Filing required annually even if no tax is due.

Most cities and counties in Tennessee impose a local business tax (also called a privilege license). Required for all businesses operating locally, including barbers and cosmetologists. Must be obtained from the city or county treasurer. See TN Comptroller's guidance for jurisdiction-specific requirements.

Services provided by barbers and cosmetologists are not subject to sales tax. However, retail sales of tangible personal property (e.g., shampoos, gels) are taxable. Must collect and remit sales tax if registered. Local rates vary; combined rates can exceed 9.75%.

All Tennessee LLCs must file Form FAE-150 annually, even if no tax is due. Due date aligns with federal Form 1120 filing deadline. Failure to file may result in administrative dissolution.

Employers must file Form WH-301 and remit withheld income tax. Tennessee does not tax wages, so most filers report $0 liability, but filing is still required.

Employers must file Form UCT-2 and pay tax quarterly. New employers typically pay at the standard rate of 2.7% until an experience rating is established.

All Tennessee counties require a business license for profit-making activities; barber shops classified under retail/services. Check specific county clerk (e.g., Davidson County: https://www.nashville.gov/departments/county-clerk/business-tax)

Required in all municipalities; fees based on projected gross receipts. Example for Memphis: https://www.memphistn.gov/government/city-clerk/business-tax-licenses

Must verify property zoning allows "personal services" use. Nashville example; check local code (e.g., Metro Code Sec. 17.08). Home occupation permit conditional for home-based: stricter limits on clients/traffic.

Limited to 25% of home, no external signage, 1 non-resident employee max in most jurisdictions. Barber/cosmetology often restricted due to traffic/water use.

Required for shop fit-outs including shampoo stations. Inspections mandatory.

Size, lighting, placement restrictions per zoning code (e.g., Metro Code Ch. 17.32).

Local health depts coordinate with state Board of Cosmetology.

Verifies fire exits, extinguishers, max occupancy for salon chairs.

All licensed barbers must renew their license biennially. Renewal is based on the licensee’s birth month. Continuing education is required for renewal (see separate entry).

Barber services are generally exempt from sales tax in Tennessee. However, retail product sales (e.g., hair products) are taxable. Filing frequency is assigned by the Department of Revenue upon registration. Most small businesses file quarterly.

Employers must register and file withholding tax returns for state income tax withheld from employee wages. Due dates depend on the total amount withheld.

Form 941 (quarterly federal tax return) for employers. Form 940 (Federal Unemployment Tax) due annually. If no employees, not required.

Barber shops are not specifically exempt, but OSHA considers many personal care services low-risk. Employers with 10 or fewer employees are generally exempt from routine recordkeeping. If required, must maintain logs of work-related injuries/illnesses and post summary annually.

Each licensed barber must display their current license in the establishment. The business must also display its certificate of operation if issued by the Board.

Required posters include the Federal Minimum Wage, EEO, OSHA Workplace Rights, and Family and Medical Leave Act (FMLA) if applicable. Posters must be in a conspicuous location accessible to employees.

Barber shops are subject to inspection by local health departments for sanitation, sterilization, and compliance with infection control standards. Specific requirements are in TN Comp. R. & Regs. 1140-01-.01.

Required by Tennessee Fire Code (based on IFC). Applies to all commercial occupancies. Certificate of Inspection may be required.

Most Tennessee municipalities require a local business license. Fees and deadlines vary. Example: Nashville business license renews annually on January 1.

Keep tax records for at least 3 years. Employment tax records for 4 years. Business records (e.g., licenses, contracts) should be kept for duration of business and beyond. Tennessee does not specify a state-level retention period beyond tax requirements.

Self-employed individuals (LLC members) must make estimated tax payments quarterly if they expect to owe $1,000 or more in tax. Applies to income, self-employment, and potentially state taxes.

Tennessee imposes a 'Business Tax' on gross receipts in certain jurisdictions. Not all counties impose it. For example, Nashville imposes a business tax on gross receipts exceeding $10,000. Minimum tax is $400 annually. Filing frequency depends on revenue volume.

Registration required to avoid false alarm fines.

Confirms compliance with building, fire, zoning codes.

Mandatory for all employers with 5 or more employees in Tennessee. However, employers in the barbering/cosmetology industry must carry coverage regardless of number of employees if any employee performs services for pay. Sole proprietors may elect to exclude themselves unless they are required by lease or contract.

Not mandated by Tennessee state law for barbershops specifically, but often required by commercial leases or local health and safety codes. Strongly recommended due to risk of client injury or property damage.

Not legally required by Tennessee law or the Board of Barber Examiners, but strongly recommended to protect against claims of negligence, improper service, or allergic reactions. Often referred to as 'barber malpractice insurance.'

Includes at least 2 hours in infection control and safety. Courses must be approved by the Board. Applies only to licensed barbers renewing their license.