How to Start a Hair Salon in Texas: TDLR Cosmetology Licenses and Salon Permit

Opening a hair salon in Texas means completing two tracks of paperwork that do not run on the same schedule. The first is business formation: choosing a structure, filing with the Texas Secretary of State, and registering with the Texas Comptroller. The second is licensing through the Texas Department of Licensing and Regulation (TDLR), which regulates barbering and cosmetology. Most first-time owners get stuck on the TDLR track because it has two layers: your own cosmetology operator license, and a separate establishment license for the salon itself.

A quick terminology note: TDLR does not issue a document called a salon permit. The salon-level authorization is a TDLR establishment license, and that is the name you will find on the agency site. This guide uses salon permit in the title because it is how most owners search, but every step below refers to the establishment license.

TDLR reported 418,635 barbering and cosmetology licensees in fiscal year 2025, so the state runs a large and established licensing system. Following it in the right order saves you from re-filing forms later.

Disclaimer: This article is informational content, not legal or tax advice. Fees, deadlines and rules change, so confirm every figure with the agency named before you commit money. If your plans involve multiple owners, a franchise, or independent stylists working in your space, talk with a qualified attorney and a CPA before you sign anything.

What you need before you start

Gather these items before you open any application. A missing document usually means a rejected filing and a delayed opening.

• Government-issued identification and documents that prove lawful presence. TDLR requires proof of lawful presence starting May 1, 2026, so do not assume an older copy will be accepted.
• A business name that meets Texas naming rules, checked against Secretary of State records. You can confirm preliminary name availability by calling (512) 463-5555.
• A street address in Texas for the salon. A salon is a physical location, and the establishment license is tied to it.
• A registered agent with a physical street address in Texas, if you form an LLC or corporation.
• The $300 filing fee for an LLC Certificate of Formation (Form 205), or the $300 filing fee for a corporation Certificate of Formation (Form 201).
• Your cosmetology school transcript or certificate of completion from a licensed school, if you hold or are pursuing an operator license.
• A business bank account in the entity name, and a written roster of every stylist, booth renter and employee you plan to have on opening day.
• A budget line for TDLR license fees. This guide does not list the establishment license fee, so confirm it with TDLR before you finalize your numbers.

Step 1: Choose a business structure

Texas does not require a general state business license. The structure you choose determines which filings you need, what you pay, and how much of your personal assets are exposed to business debts and claims.

• Sole proprietorship. No formation filing is required. If you operate under a name other than your own legal name, you file an assumed name certificate with the county clerk in each county where you do business. County clerk fees vary by county.
• LLC. The most common choice for salon owners. You file a Certificate of Formation with the Secretary of State for $300.
• Corporation. Also carries a $300 filing fee, using Form 201. Corporations carry more formal governance requirements, so most small salons start with an LLC.

Texas levies no corporate income tax and no state personal income tax. LLCs and corporations instead pay the Texas franchise tax, a privilege tax administered by the Texas Comptroller of Public Accounts. For the 2026 and 2027 report years, the no tax due revenue threshold is $2,650,000. An entity at or below that total revenue owes no franchise tax, but it still files a Public Information Report. Rates above the threshold are 0.375 percent for retail and wholesale entities and 0.75 percent for all other entities.

The Public Information Report is due May 15 each year, and you file it with the Comptroller, not the Secretary of State. Texas also has no publication requirement, so you will not need to run a newspaper notice after forming your entity.

The right structure depends on your liability exposure, the number of owners and your tax position. A CPA can help you compare them before you file.

Step 2: Check your name and file with the Secretary of State

An LLC name must be distinguishable in Secretary of State records from any existing domestic or registered foreign filing entity, name reservation or registration. It must include an organizational designation such as Limited Liability Company, Limited Company, LLC, L.L.C., LC or L.C. The name cannot imply a purpose the company is not authorized to pursue, and it cannot falsely suggest an affiliation with a governmental entity.

Search existing names on the Secretary of State business search before you commit to anything. If you need time to finish your paperwork, you can reserve a name for 120 days for a $40 fee using the name reservation form.

File your Certificate of Formation through SOSDirect, the Secretary of State online portal. Electronic filing through SOSDirect or SOSUpload gives the fastest processing. Mailed or hand-delivered documents generally take at least one business day just to be entered and show a status of Received. The Secretary of State does not publish a guaranteed standard turnaround.

If you need a guaranteed timeline, the Texas Express expedite options are the only paid route to one. Expedite fees are charged in addition to the filing fee:

• Standard Expedite: $50 per document, typically processed in two to three business days.
• Next Day Expedite: $500 per document, processed by close of business the next business day for filings received by 12:00 p.m.
• Same Day Expedite: $750 per document, processed by close of business the same day for filings received by 12:00 p.m.
• Preclearance of a draft instrument: $50.

Expedite is worth the cost only if a lease or contractor date depends on the filing. Otherwise, standard electronic filing is the cheaper choice.

Step 3: Appoint a registered agent

Every domestic filing entity must continuously maintain a registered agent and a registered office in Texas. The agent must be a Texas resident individual, a domestic entity, or a foreign entity that has qualified to transact business in Texas. Your LLC cannot serve as its own registered agent, and the agent must have consented in writing or electronically.

The registered office must be a physical street address in Texas where the agent can be personally served during normal business hours. A post office box, a mail forwarding service or an answering service alone does not meet this requirement. Changing your registered agent or office costs $15. Filing a resignation of registered agent has no fee.

Many owners use a commercial registered agent service. Compare the annual price and confirm that the service provides a physical Texas address, because cheap services sometimes do not.

Step 4: Earn your cosmetology operator license

Anyone who performs cosmetology services for pay needs a TDLR license. The cosmetology operator track requires a 1,000 hour course at a licensed school. Other tracks cover narrower services: a manicurist license requires 600 hours, an esthetician license requires 750 hours, and a combined manicurist and esthetician license requires 800 hours.

Match the track to the services you plan to offer. A salon that offers haircuts, color and styling needs stylists on the cosmetology track. A nail-only or skincare-only space needs licenses that match those services. Confirm with TDLR which license covers each service on your menu.

Complete your course, pass the state exam that TDLR requires, and apply for your individual license. Confirm the current application fees and processing times with TDLR, because those figures are not listed in this guide.

Step 5: Apply for the TDLR establishment license

The salon itself needs a TDLR establishment license. Under the merged barber and cosmetology system, the establishment types include salon, specialty salon and mini-salon. Choose the type that matches your planned services and layout, and ask TDLR to confirm which one applies before you sign a lease.

Confirm with TDLR whether the owner must hold an individual license even if the owner does not perform services in the salon. Also confirm the establishment license fee, the application steps and the expected processing time. Do not set an opening date until the establishment license is issued.

Plan your timeline backward from opening day. Start the entity filing, the registered agent appointment, the license applications and the lease at the same time, because each depends on a different agency or landlord.

Step 6: Set up stylist and booth renter arrangements

Booth renters hold their own individual TDLR licenses. The salon does not license them on their behalf. Keep a copy of each renter license on file, and calendar its expiration date so no one works on an expired license.

How you classify stylists is the most expensive mistake many salon owners make. Some owners label every stylist a 1099 contractor and assume the label settles the question. It does not. The Texas Workforce Commission can apply its own employee tests, and a salon that sets schedules, prices, required services, uniforms or client assignments may be found to have employees. A signed booth rental agreement does not decide the question by itself.

Before you hire or rent to anyone, have an attorney or CPA review how you plan to pay, schedule and supervise stylists. Get that answer in writing before your first paycheck or booth rent invoice.

Step 7: Register for taxes

Most businesses that sell taxable goods or services in Texas need a sales and use tax permit from the Comptroller. The permit is issued at no charge and typically takes two to three weeks to process. Retail products sold from a salon, such as shampoo or styling tools, usually fall into this category, so confirm your sales tax obligations at the Comptroller permit page. The Texas state sales tax rate is 6.25 percent.

If you formed an LLC or corporation, calendar your franchise tax obligations now. The Public Information Report is due May 15 each year to the Comptroller, even if your revenue is below the no tax due threshold. Find current guidance on the Comptroller taxes page.

If you operate as a sole proprietor under a trade name, file your assumed name certificate with the county clerk in each county where you do business. Entities formed with the Secretary of State file their assumed name certificate there instead, for $25, and the certificate may run up to 10 years before it must be refiled.

Step 8: Calendar renewals and continuing education

House Bill 1778, effective September 1, 2025, changed continuing education requirements at renewal. The required hours depend on how long you have been licensed:

• Under 15 years of licensure: 4 hours, including 1 hour of sanitation, 2 hours of barbering or cosmetology, and 1 hour of human trafficking prevention.
• 15 years or more: 2 hours, covering sanitation and human trafficking prevention.

Put renewal dates and CE deadlines on a shared calendar, and make sure every stylist does the same. Confirm renewal deadlines and approved course rules with TDLR, not with a course provider's marketing page.

Expected results

Following these steps in order may put your salon in a position to open with the required entity filings, licenses and tax registrations in place. A properly structured, licensed and documented business may also find it easier to answer routine questions from landlords, lenders and agency staff.

This process does not guarantee a specific opening date, approval timeline or revenue level. Agency processing times and fees change, and results depend on how complete and accurate your filings are.

Common mistakes to avoid

• Opening before the establishment license is issued. Signing a lease and booking clients is fine, but do not take paying clients until the license is in hand.
• Choosing an LLC name without an organizational designation. The name must include LLC, L.L.C., Limited Company or a similar designation.
• Using a post office box as the registered office. The registered office must be a physical street address in Texas where the agent can be served in person.
• Assuming a county license exists. Texas has no general county business license. Counties handle assumed name filings for sole proprietors, and that is the main county-level filing most salons will face.
• Treating every stylist as a contractor without review. The label alone does not control the Texas Workforce Commission's analysis.
• Forgetting the Public Information Report. Entities under the franchise tax threshold still file it by May 15.
• Letting continuing education lapse. Missed CE hours can complicate renewal for you and every stylist on your roster.
• Planning around a guaranteed state processing time. The Secretary of State does not publish one, so build buffer time into your lease and opening dates.

Practical tips before you file

• File electronically through SOSDirect whenever possible, and submit before noon if you need same-day or next-day processing.
• Keep one master spreadsheet with every license number, expiration date, filing number and agency contact.
• Ask your landlord whether the lease requires proof of your entity filing or your establishment license before signing.
• Ask each stylist for a copy of their license before their first client, and keep it on file.
• Use free help. The Texas Small Business Development Center Network offers advising for new owners, and it is a good place to test your plan before you pay for a service.

Next steps

Start with the business formation filing and the name check, then move to your operator license and the TDLR establishment application. Those two tracks can run at the same time, but the establishment license controls your opening date. Keep copies of every confirmation and agency receipt.

If your salon involves multiple owners, independent booth renters, a franchise, or a lease with unusual terms, talk with a qualified Texas attorney and a CPA before you file. They can review your specific facts, which this informational guide cannot do.

Reminder: This article is informational content, not legal or tax advice. Confirm all fees, licensing requirements and deadlines directly with the Texas Department of Licensing and Regulation, the Texas Secretary of State and the Texas Comptroller of Public Accounts before you act.