How to Start a Hair Salon in Indiana: PLA Salon and Cosmetology Licenses

Opening a hair salon in Indiana means handling two separate sets of paperwork. The first is business formation with the Indiana Secretary of State. The second is licensing with the Indiana Professional Licensing Agency (PLA), which oversees the State Board of Cosmetology and Barber Examiners. Owners often get stuck because they treat these as one task. They are not, and the order matters.

This guide follows the order we recommend: form the business, get the salon license, license every person who performs services, then handle taxes, local approvals, and renewals. The fees listed here come from the state sources we verified. Where a figure is not confirmed, we say so and tell you who to ask.

What You Need Before You Start

Gather these items before you file anything. Having them ready prevents the delays that catch most first-time owners.

• A business name you want to use, checked against the Secretary of State's business search at https://bsd.sos.in.gov/publicbusinesssearch
• A registered agent. This must be an Indiana resident whose business office is the registered office, or a company authorized to do business in Indiana. Your business cannot be its own registered agent, and you can have only one.
• A street address for the registered office. A P.O. Box is not sufficient unless it includes a rural route reference.
• A signed lease or letter of intent for the salon space, since local zoning and permit reviews depend on the address.
• Government-issued ID and personal details for every owner and every stylist who will hold a license.
• A credit or debit card for state fees. Most Secretary of State filings are paid online through INBiz at https://inbiz.in.gov/
• A federal Employer Identification Number (EIN) from the IRS, which is free to obtain directly from the IRS.
• A startup budget that covers the fees in this guide plus your first months of rent, equipment, and supplies.

Step 1: Decide Which License Structure Fits Your Salon

Indiana uses two layers of licensing for a salon. The salon itself needs a facility license, and each person who performs cosmetology services needs an individual license. The PLA's licensing page lists a Beauty Culture Salon license and a Mobile Salon license. A Beauty Culture Salon license covers a fixed location. A Mobile Salon license applies if you operate from a mobile unit rather than a fixed location. Most storefront owners need the Beauty Culture Salon license.

Decide early whether you will employ stylists, rent booths to independent stylists, or do both. That choice affects your paperwork, your insurance, and your tax setup, so settle it before you sign a lease.

Step 2: Form Your Business as an LLC

Most salon owners form a limited liability company (LLC). The filing is the Articles of Organization, Domestic Limited Liability Company (State Form 49459). The filing fee is $95 when you file online through INBiz. The name must include the words Limited Liability Company or an abbreviation of them, and it must be distinguishable from names already on record with the Secretary of State. Entity endings such as LLC or Inc. do not make a name distinguishable, so a name that differs only by that ending will be rejected.

The Secretary of State does not publish a processing time for formations, and no expedited option is offered for a domestic LLC. Plan for the filing to take as long as it takes, and do not sign a lease with a start date that depends on it arriving by a specific day.

After formation, LLCs file a Business Entity Report for $32. It is due every other year by the end of the month in which the business was formed. The first report is due two years after formation. The paper filing costs $50.

Step 3: Reserve Your Name If You Need Time

If you cannot file the Articles right away, you can reserve a name for 120 days for $10 through INBiz. A reservation holds the name while you line up the lease, financing, and license applications. It does not form the company.

Step 4: File an Assumed Business Name if You Use a Different Name

If your salon's public name differs from the LLC's legal name, you need a Certificate of Assumed Business Name (State Form 30353). For a business already registered with the Secretary of State, the fee is $20 per name filed online through INBiz. A paper filing costs $30 per name for an LLC. Sole proprietors and general partnerships file with the county recorder instead, and those county fees vary, so check with your county.

Step 5: Get an EIN and Open a Business Bank Account

Get your EIN from the IRS before you open a bank account or hire anyone. Open the account in the LLC's exact legal name. Keep salon money out of your personal account from day one. Mixing funds is one of the fastest ways to lose the liability protection an LLC provides, and it makes your bookkeeping much harder.

Step 6: Apply for Your PLA Salon License

The salon license application goes to the Indiana Professional Licensing Agency. The application fee for a Beauty Culture Salon or Mobile Salon license is $40. The fees are set in 820 IAC 7. Search the PLA website at in.gov for the current application form and checklist, since requirements for documents or inspections can change, and confirm them before you submit.

Apply with the exact legal name of your LLC and the address of the salon. Make sure the address matches your lease. Mismatched names and addresses are a common reason for returned applications.

Step 7: License Every Person Who Practices

Each person who performs cosmetology services in Indiana needs their own individual cosmetology license. The individual license fee is $40, under 820 IAC 7. This applies to you if you cut hair, and to every stylist you hire or rent a chair to.

Do not let anyone start work on the strength of a pending application. Confirm each person's license status with the PLA before their first day. Keep copies of each license in your employee files.

Booth Rental Rules to Confirm Before You Sign

Many Indiana salons rent chairs to independent stylists, and many people search for information about indiana booth rental arrangements. The general licensing rule is that each person who practices needs their own individual license, and that applies to booth renters as well. We did not verify the specific continuing education or booth renter rules, so do not rely on this guide for them. Ask the PLA directly how it treats your rental arrangement before you sign any agreement with a renter.

Booth rental also raises tax and worker classification questions, including whether renters are independent contractors or employees. Those questions depend on your specific facts, so ask a CPA or an employment attorney to review your agreement.

Step 8: Register for a Retail Merchant Certificate If You Sell Products

If you sell taxable goods such as shampoo, styling products, or accessories, you need a Registered Retail Merchant Certificate from the Indiana Department of Revenue. The certificate costs $25. Indiana's state sales tax rate is 7%. Register through the Department of Revenue at https://www.in.gov/dor/i-am-a/business-corp/business-education/register-business/ and confirm with the department which of your sales are taxable. Service charges and product sales are treated differently, so do not assume.

Step 9: Check Local Permits and Zoning

Indiana does not have one comprehensive state business license. Your salon will still need local approvals from your city or county, which usually include zoning confirmation for a salon use, building permits for any buildout, and sign permits. Call the local planning or zoning office before you sign the lease. A space that is zoned for retail may not allow a salon without additional approval, and that can change your timeline and budget.

Step 10: Calendar Your Renewals and Reports

Put every deadline on a calendar the day you receive each license. For your PLA licenses, check the expiration date printed on each license and the current fee rule under 820 IAC 7. The renewal fee is $40 for each license. The PLA sends renewal notices about 90 days before expiration, but do not wait for the notice to start the renewal. Renewal periods are not confirmed in this guide. A 2026 Indiana Register rule filing refers to a four-year period, but its final status was not confirmed, and other sources describe a shorter cycle. Confirm the period with the PLA.

Indiana Cosmetology License Lookup and Renewal

Before you hire someone, confirm their license with the PLA. Use the agency's license lookup to check that the name, license type, and status match the person in front of you. Ask to see the physical license, and record the license number in your files.

For renewal, do not wait for the expiration date to pass. A lapsed individual license means the person cannot practice until it is restored, which can stop a stylist's booked clients and your revenue in the same week. Renew the salon license and every individual license on the same calendar so nothing slips.

Tips for a Smoother Launch

• File the LLC first, then apply for the salon license under the exact legal name.
• Ask your registered agent to confirm the registered office address matches your lease.
• Ask the PLA about booth rental before you draft rental agreements, not after.
• Keep a single folder with every license, filing receipt, and renewal date.
• Talk to the Indiana Small Business Development Center at https://isbdc.org/ for free or low-cost planning help.

Common Mistakes to Avoid

• Assuming the LLC filing also licenses the salon. It does not. The PLA license is a separate application.
• Letting a stylist start before their individual license is confirmed.
• Using a P.O. Box as the registered office address.
• Choosing a name that differs from an existing name only by an entity ending or punctuation.
• Selling retail products without a Retail Merchant Certificate.
• Missing the Business Entity Report, which is due every other year.
• Running personal and salon money through the same account.

What Results to Expect

A correctly filed LLC, a confirmed salon license, and properly licensed staff give you a clean foundation to open. They do not guarantee bookings, revenue, or a particular timeline. Many owners find that the first few months take longer than planned, so build a cash reserve. Salons that keep their renewals current and document their licenses are usually easier to manage when a client, landlord, or lender asks for proof.

If you sell products, keep label and marketing claims to cosmetic effects, such as making hair look shinier or easier to comb. Avoid claims that a product treats, cures, or regrows hair. Claims like that can raise regulatory problems that go well beyond licensing.

Indiana Salon Startup Costs at a Glance

Item	Fee	Where to pay or confirm
Articles of Organization, LLC (online)	$95	INBiz, Secretary of State
Name reservation (120 days)	$10	INBiz, Secretary of State
Assumed business name (online)	$20 per name	INBiz, Secretary of State
Beauty Culture Salon or Mobile Salon license	$40	Indiana PLA, 820 IAC 7
Individual cosmetology license (each person)	$40	Indiana PLA, 820 IAC 7
Renewal (each salon or individual license)	$40	Indiana PLA, 820 IAC 7
Business Entity Report (every other year)	$32	INBiz, Secretary of State
Registered Retail Merchant Certificate	$25	Indiana Department of Revenue

Indiana has no franchise tax. LLC income passes through to the owners, who pay the individual adjusted gross income tax, currently 2.95% for 2026 and scheduled to fall to 2.90% in 2027, plus any county local income tax. An LLC that elects corporate tax treatment pays the 4.9% corporate rate instead.

When to Talk to a Professional

This article is informational only. It is not legal, tax, or licensing advice. Requirements, fees, and deadlines can change, so confirm each one with the agency named in this guide before you file or pay. For your lease, booth rental agreements, worker classification, and tax setup, consult a qualified Indiana attorney and a certified public accountant.

Start with the Indiana Secretary of State at https://www.in.gov/sos/business/ for formation questions, the Department of Revenue at https://www.in.gov/dor/ for tax questions, and the Indiana Professional Licensing Agency for salon and cosmetology licensing. Those three agencies decide what your salon must have on file, so verify your plan with them before you open.