Do you want to know what type of license you need to open a hair salon in Florida? If YES, here are 6 types of license needed to start a hair salon in Florida. According to reports, Americans spend approximately $20 billion annually at the salon, with most women paying an average $1,800 per year. Thus, the female population are who most hair salons primarily target in their marketing strategy.
According to reports, the profits made by these businesses will be defined by a number of things, including how the salon is structured and the part of Florida the salon is located. The average annual earnings for a hair salon owner in Florida are approximately $54,000.
Opening a salon in Florida is an exciting adventure, but before any new or intending salon owner opens their door for services, they have some paperwork to complete. This means sending in applications, preparing for inspections, and reading the Florida laws and rules to make sure the space meets all the requirements. No one wants their salon to be cited during an inspection.
6 Required Licenses and Permits for a Hair Salon in Florida
The Florida Cosmetology Board isn’t concerned about a salon pricing, cute business cards, online scheduling portal, or the size of the retail space. The board is concerned with ensuring the safety of the public. Opening a salon in Florida is a huge undertaking, and here are some of the most frequently needed licences and Permits to run a hair salon in Florida, with their applicable Florida Statute or Board Rule.
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1. Salon License
The Florida Board of Cosmetology licenses and regulates cosmetologists, nail specialists, facial specialists, full specialists, hair braiders, hair wrappers, body wrappers, cosmetology salons, and mobile cosmetology salons. Florida mandates a salon license for any location where cosmetology or a specialty (nail, facial, full specialists) is practiced.
The intention is to make sure the public in Florida has access to salon services in a safe and sanitary environment. Note that operating a salon or barbershop without a license is considered unlicensed activity. Unlicensed activity in Florida is a criminal offense and can result in misdemeanour or felony charges if an individual is convicted.
2. Salon Insurance
Full salon insurance in Florida costs about $2,900 per year (approximately $240/month) for a salon with two employees. Nonetheless, the exact salon insurance cost can vary greatly, from $50/month to $1000/month, depending on the number of employees, business turnover, as well as the type of services provided. Note there are also ways you can combine insurances to bring the cost down.
3. Florida Seller Permit
The state of Florida requires every hair salon to have a specific permit in order to sell retail. A seller’s permit typically does not cost anything. However, you may be required to place a security deposit to cover any un-paid taxes in case the business closes. The amount of the deposit will be determined at the time of application.
4. Salon Business Operation License
Just like every other US states, Florida requires that a hair salon must have a business license. To apply for this business license, you just need to fill out a form with your social security number and profession. A business license typically costs around $100 but the cost can range from $50 to $400. An additional processing fee of about $25 can also be added.
5. Federal Employer Identification Number (EIN)
The state of Florida collects sales tax on products a hair salon sells to consumer. Typically you pay 8% of your retail price in state tax. Note that a new hair salon owner is expected to go to the state’s tax office to register for this free Tax Identification Number.
You’ll typically need to provide your business operation license, personal details, and a description of the items you are planning to sell. Note that online incorporation services charges around $75 for EIN. However, the IRS does not charge anything for it so you can get this yourself for free by going directly to them. You can apply for a Federal Employer Identification Number online at the IRS.
6. Certificate of Occupancy
In the state of Florida, you are expected to validate that your property is fit for the salon business you are planning to set up. A salon business notably requires specific water installation and treatment of chemicals so you want to make sure you have the property inspected before you setup your business.
The Certificate of Occupancy is a document that is issued by a local government agency or building department that certifies that your property is compliant with the requirements for the type of business you are planning to run. You should request this certificate before any work is done on the property. The cost for a Certificate of Occupancy is around $20 to $80 depending on the size of your property. Commercial businesses spaces under 1,500 sq. ft. are typically around $30 where bigger ones go up to $80.
Two decades ago, hair salon owners worked hard to make a good living, making a majority of their income by being the primary stylist at the shop. However, in this age, with advanced business tools at our disposal, entrepreneurs have a unique opportunity to grow their business into more than “just” an honest living.
Many are building salons they’re able to sell for multi-millions, offering real value and financial freedom to those committed to growing their business. Nonetheless, the importance of licenses and Permits cannot be over-emphasised, especially in the state of Florida. Proper research and consulting with an attorney is the best way to go about these rigorous but mandatory processes.