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How to Start a Barbershop or Hair Salon in Tennessee

Barbershops and salons run on repeat clients and a full chair schedule. Barbers and cosmetologists need a state license, and most states also permit or inspect the shop itself. Your biggest structural choice is whether stylists are employees or rent their chairs.

Reviewed November 5, 2026 · Sources linked inline

Tennessee requirements for this business

  • Barber shops must apply to the Tennessee Board of Cosmetology and Barber Examiners, pay a $150 application fee, and pass an inspection before opening for business. [source]
  • Apply online at least three weeks before your planned opening; the initial inspection is made within ten days of receiving the application, and applications and fees are valid for only 90 days. [source]
  • All full-service barber shops must have a licensed master barber acting as manager at all times the shop is open; the owner may serve if properly licensed. [source]
  • Required equipment includes a shampoo bowl with hot and cold water, a workstation and mirror for each operator, a wet disinfectant container per barber chair, an ultraviolet sanitizer, and a working restroom. [source]
  • The Department of Revenue says charges for beauty services such as hair cutting are not subject to sales tax, but any products sold are taxable. [source]

Statewide steps for every Tennessee business — forming an LLC or registering a business name with the Tennessee Secretary of State — are on our state licensing directory.

FirstBizGuide is not a government agency: any license or registration fees are paid directly to the agency named in each source. These are the Tennessee facts we have verified so far, not a complete list. City and county rules vary — check with your local government before opening.

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a barbershop or hair salon cost worksheet →

SBA 7(a) loans in this industry

Barber Shops (NAICS 812111): 489 loans approved in FY2024–FY2026. Median loan $50,000; middle half $25,000–$183,500.

Beauty Salons (NAICS 812112): 2,629 loans approved in FY2024–FY2026. Median loan $75,000; middle half $30,000–$225,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Barber Shops (NAICS 812111)

In Tennessee: 115 employer establishments (2023) and 3,990 businesses without employees (2024). Nationwide: 7,789 employer establishments (2023) and 154,456 businesses without employees (2024).

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Barber or styling chairs and stations
  • Shampoo bowls with proper plumbing
  • Clippers, trimmers, shears and dryers
  • Sanitation: disinfectant, sterilizers and closed storage
  • Reception area and point-of-sale system
  • Retail shelving

Licenses and registration

  • States license barbers, hairstylists and cosmetologists to work; qualifications vary by state. [source]
  • Most states also require a separate shop or establishment license and inspection — check with your state board of barbering or cosmetology.
  • Check whether your city requires a business license, and confirm zoning for the space.
  • Booth renters usually need their own license and sometimes a booth rental permit.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • General liability
  • Professional liability (malpractice) for services
  • Business property coverage
  • Workers' compensation for employees
  • Require booth renters to carry their own coverage

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Rent
  • Products and supplies
  • Stylist pay or commission
  • Utilities and laundry
  • Insurance
  • Booking software and card fees
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them, and the employee cost calculator for staffing.

Common mistakes

  • Signing a lease before checking plumbing for shampoo bowls
  • Treating booth renters like employees (or the reverse)
  • No written booth rental or commission agreement
  • Opening without a waitlist of clients
  • Neglecting sanitation records before inspection

Finding customers

  • Google Business Profile with photos and online booking
  • Instagram and TikTok before-and-after content
  • Rebooking at checkout
  • Referral rewards for clients

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources