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Renting a booth or a suite in a Minnesota salon? The big question is whether you need your own establishment license or whether you are covered by the salon you rent from. Here is exactly how Minnesota treats it in 2026 — the license question, the fees, the inspection rule, how your rent is taxed, and the steps and postings to get compliant — sourced to the state’s own rules and dated.
Yes, in most independent situations. Minnesota licenses the SALON (establishment); no separate 'booth' or 'chair' rental license class exists. Minn. Stat. 155A.29 subd. 1 bars offering cosmetology services for compensation except by a licensee in a LICENSED salon (verified: 'A person must not offer cosmetology services for compensation unless the services are provided by a licensee in a licensed salon...'). If a booth/suite renter operates their own distinct salon space (a private suite that is their own business), that space must hold its OWN salon establishment license and employ a licensed salon manager. A person renting only a chair/booth WITHIN an existing salon that operates as one salon can be covered by the owner's establishment license. Either way the renter must hold an individual practitioner license. (Minn. Stat. 155A.29; https://mn.gov/boards/cosmetology/salons/initial-salon-license/)
Initial salon license $350 for a 3-year term ($250 license + $100 application fee); salon renewal $225 for 3 years ($175 + $50). Verified against Minn. Stat. 155A.25. Source: https://www.revisor.mn.gov/statutes/cite/155A.25
Yes. A board-issued individual practitioner license is required for the discipline practiced (cosmetologist, esthetician, advanced practice esthetician, nail technician, eyelash technician, or hair technician). Licenses run on a 3-year cycle. Verified fees (Minn. Stat. 155A.25): initial practitioner $195 ($155 license + $40 application), renewal $115 ($100 + $15). A solo suite operator who must serve as the salon's manager needs a manager license (manager/instructor renewal $145 = $130 + $15). Renewal also requires continuing education: 4 hours plus 4 hours per three-year cycle (Minn. Stat. 155A.271).
No pre-opening inspection is part of the initial salon application — you submit the application, business registration certificates, proof of insurance and a floor plan. Licensed salons are then inspected unannounced. What follows an inspection matters: you must correct violations and file a written report with the board within 10 business days, and post the inspection report. A reinspection costs $150 (Minn. Stat. 155A.25).
The governing rule is Minn. R. 2105.0397 subp. 1, which recognises TWO lawful set-ups for a rented suite: a single umbrella salon licence covering the whole building, or one salon licence per suite. Which one applies is the landlord's structural choice, not yours alone. A stylist renting a chair on the open floor of a salon needs NO establishment licence at all — only their individual licence. Practical duties that come with renting: the salon must provide and keep your hours records for four years (2105.0390(D)); you must carry your own professional liability insurance (2105.0322 subp. 4(B)); you must give the board's inspector access to your rented space (2105.0115 subp. 1(C)); and your advertising must say you practise 'at' the named salon (2105.0110(D)). Note that the board does NOT treat classification as purely a tax matter — it has its own penalties, $200 for the owner and manager and $100 for the operator, under Minn. Stat. 155A.25 subd. 1a(c)(10) and (11). Finally, the '50 square feet / 35 square feet plus a manager licence to rent' rule repeated across salon blogs is REPEALED law (Minn. R. 2105.0393 subp. 6, repealed at 41 SR 305).
Generally NOT subject to Minnesota sales tax. Cosmetology/barber/salon/spa SERVICES are not an enumerated taxable service in Minnesota, and booth/suite RENT is a lease of real property, which is not an enumerated taxable service under Minn. Stat. ch. 297A - so booth/suite rent is generally not taxed. Caveat: RETAIL PRODUCT sales (shampoo, tools, etc.) ARE taxable, so a renter who resells products must register with the Department of Revenue and collect sales tax. The Revenue 'Barber Shop, Salon, and Spa Services' guide does not address booth rent by name - confirm any specific rental arrangement with the Minnesota Department of Revenue. (Note: the live Revenue guide was inaccessible during this verification due to an anti-bot redirect; this treatment is consistent with Minn. Stat. ch. 297A and is retained but should be re-confirmed with the Department of Revenue.) Source: https://www.revenue.state.mn.us/guide/barber-shop-salon-and-spa-services
Work through these in order — the kit turns them into a checklist you can tick off:
You practise under an individual licence from the Board of Cosmetologist Examiners. Minn. Stat. 155A.27, subd. 1 requires an individual licence to work as a cosmetologist, esthetician, hair technician, nail technician, eyelash technician, advanced practice esthetician, manager or instructor, and subd. 6 fixes every classification at three years. Minn. R. 2105.0145, subp. 1 sets the entry route: at least 17 years old, a completed application, passing results no more than a year old on the board-approved general theory test, written practical test and Minnesota laws and rules test, and a notarised course completion certificate for 1,550 hours (cosmetologist), 600 (esthetician), 350 (nail technician) or 14 (eyelash technician). Training older than five years also needs a skills course certificate no more than a year old. A cosmetologist needs no separate esthetician, nail technician or eyelash technician licence (subp. 5). Three exemptions matter to renters: hair braiding is exempt from the whole chapter (155A.28, subd. 5), threading is exempt (155A.27, subd. 9(b)), and a person doing only hairstyling and makeup as defined in 155A.23, subds. 19 and 20 is exempt if they complete a four-hour health, safety, infection-control and state law course and carry proof of it (155A.27, subd. 9(c)).
Minnesota licenses the salon, and the answer for a renter turns on the architecture of the building, not on the wording of the lease. A 'salon' is 'an area, room, or rooms employed to offer personal services' (Minn. Stat. 155A.23, subd. 9), and 155A.29, subd. 1 says a person must not offer cosmetology services for compensation unless the services are provided by a licensee in a licensed salon. Rent an open chair or a station inside somebody else's licensed salon and you are covered by that salon's licence; Minn. R. 2105.0390(D) and 2105.0322, subp. 4(B) treat you as a lessee practising under the host's licence. A suite is where the fork is. Minn. R. 2105.0397, subp. 1 gives suite-style buildings exactly two lawful shapes: 'Suite-style salons must have one salon license under which every suite located on the premises operates, or each suite must carry its own salon license as an individual salon.' If the landlord holds the umbrella licence, you rent under it. If the building is set up so each suite is its own salon, you apply in your own name and meet every salon requirement in chapter 2105 yourself, including the designated licensed salon manager. One further rule bites on independent suites: 'a licensed salon business may not share any physical space with another licensed salon business except for restrooms, and may not be located inside the perimeter of another licensed salon' (2105.0310, subp. 1), so a self-licensed suite must be a genuinely separate space, not a curtained corner.
The licence is issued by Minnesota Board of Cosmetologist Examiners, 1000 University Avenue West, Suite 100, St. Paul MN 55104.
Fee: $350 for the initial salon licence, split $250 licence and $100 application fee (Minn. Stat. 155A.25, subd. 1a(b)(4)). Expedited processing is $300 more. A name change costs $20; a change of location, of owner or of business structure is not a fee but a fresh application.
Renewal: $225 every three years ($175 renewal + $50 application fee). The licence expires on the last day of the month of initial licensure of the year due (155A.25, subd. 4; 2105.0520(B)), and no renewal notice is required for the deadline to bite (2105.0330, subp. 2). Late renewal costs $50. Miss the date and the salon is delinquent and 'must cease operations and not resume operations until a salon license has been issued' (subp. 7(B)); after six months you lose the right to renew at all and must apply as a new salon (subp. 7(C)). Renewal also requires confirming that professional liability and workers' compensation policies are current, 'including liability policies for practitioners leasing space in the salon' (subp. 6).
Booth, chair and suite rental are lawful in Minnesota and the rules name lessees explicitly, but the burden is split in a way that surprises renters. Under Minn. R. 2105.0390(A) the salon owner and the DLSM 'are responsible for the salon at all times, even when not present' and must ensure that 'all practitioners, including nonemployees, who perform licensed services in the salon are in compliance' and are currently licensed - which is why hosts police stations. Two duties run the other way. Insurance: the salon 'must ensure that each practitioner leasing space in the salon continuously maintains professional liability insurance or is covered by the salon's professional liability policy' (2105.0322, subp. 4(B)), with proof kept on the premises. Settle in writing whose policy covers you. Hours: 'Any salon that leases space to one or more licensed practitioners must provide lessees with a method to track hours worked', contemporaneous, retained four years, produced to the board or the licensee on written request, though 'the salon has no obligation to ensure the use of the method to track work hours by a lessee' (2105.0390(D)). Keep your own copy: it is the best evidence you will have if your status is challenged. Your space is not private either - the owner and DLSM 'must have access to all salon space, including leased space within the salon' and must open it to a board inspector (2105.0115, subp. 1(C)). Advertising has its own renter rule: 'A practitioner leasing space in a licensed salon may advertise under a business name if the full name of the practitioner as shown on the practitioner's license is listed. If the practitioner's full name is not listed, wherever the business name appears, it must be immediately followed by "at (insert legible name of salon as it appears on the salon license)"' (2105.0110(D)); suite directory and entryway signage in a licensed suite-style building is carved out (2105.0397, subp. 7). Beware guidance written before 2016: Minnesota used to have a rule headed 'Independent contractor' (then 2105.0393, subp. 6) allowing a licensee to lease work space only if the lessee held a manager's licence and the space was at least 50 square feet for a cosmetologist or esthetician and 35 for a nail technician. That subpart was repealed by 41 SR 305. Material still quoting 50 or 35 square feet is describing repealed law.
Every salon is 'subject to inspection at any time the board deems it necessary to affirm compliance' (Minn. Stat. 155A.29, subd. 3; Minn. R. 2105.0115, subp. 1). Inspections are unannounced: licensees must let an inspector in on arrival, including appointment-only salons, the owner and DLSM must open all salon space, leased space included, and all staff must cooperate. There is no pre-opening inspection - the floor plan does that work on paper. When violations are found the salon and DLSM must bring the salon and every licensee practising under its licence into compliance within ten business days; if an order to comply issues, a written report explaining each correction and its date, with reasons and a projected date for anything outstanding, goes back to the board within ten business days on a board form, and extensions must be granted on written request where public health and safety are not at immediate risk (subp. 2). Within ten business days of the issuance date the salon must conspicuously post the report in the reception area or at each customer entrance, unaltered on 8-1/2 x 11 paper, until a new one replaces it (subp. 3); in a suite-style salon it goes at the customer entrance (2105.0397, subp. 5). Reinspection can cost $150 (155A.25, subd. 1a(c)(1)), and penalties must be paid in full before any licence is issued or renewed (2105.0115, subp. 4(B)).
Rent. Minnesota taxes tangible personal property and only the services enumerated in Minn. Stat. 297A.61, subd. 3(g). Leasing floor space is not among them - the taxable leases in that subdivision are leases of tangible personal property (subd. 3(b)(2)) - so booth, chair and suite rent carries no Minnesota sales tax. Check any bundled charge: if your rent packages in equipment hire, laundry or product, those parts can be taxable on their own terms. Services. The Department of Revenue's 'Barber Shop, Salon, and Spa Services' guide lists as not taxable cutting, colouring, highlighting, perming, trimming and styling hair, hair extension and restoration, hair removal and waxing, shaving, shampooing and conditioning, and under spa services aromatherapy baths, body scrubs, polishes and wraps, facials, manicures and pedicures; its 'Miscellaneous Personal Services' guide adds piercing, permanent makeup and tattooing. Three exceptions catch salon and spa renters. Massage is a taxable service under 297A.61, subd. 3(g)(6)(vii) - the guide taxes acupressure, reflexology, shiatsu, sports massage, Rolfing and similar - unless the customer has a written referral from a licensed health care provider stating it is for ongoing treatment of illness, injury or disease, which you must keep. Fees and memberships to use tanning equipment are taxable, while spray and airbrush tanning are not. And packages are all-or-nothing: 'When a package sale includes taxable and nontaxable items or services for one price, the package is taxable. When the taxable items or services are 10 percent or less of the package price, the package is not taxable.' Retail. Product sales are taxable - hair products, makeup, skincare, wigs, hairpieces if separately stated - so a renter who retails must register for a Minnesota tax ID, collect tax, and buy that stock exempt with Form ST3 claiming the resale exemption. Your own supplies. The trap for renters who buy their own stock: the Department treats consumables used in a nontaxable service as taxable purchases (cosmetics, cotton pads, polish and remover, shampoo, conditioner, sanitising spray, wax), and so are tools and equipment (brushes, combs, shears, dryers, styling tools, chairs, mats, towels). Clothing such as aprons, capes, gloves and uniforms is not taxable. Buy any taxable item tax-free out of state or online and you owe use tax. Income. A renter is self-employed, so federal self-employment tax and Minnesota income tax on the profit are yours.
This is the sharpest edge in Minnesota, and it is statutory. Minn. Stat. 155A.25, subd. 1a(c) sets inspection penalties of up to '$200' for an 'owner and manager allowing an operator to work as an independent contractor' and '$100' for an 'operator working as an independent contractor'. Those two clauses sit in the fee schedule with no matching prohibition anywhere in current chapter 2105 - the substantive independent contractor rule, old 2105.0393, subp. 6, was repealed by 41 SR 305 - while the surviving rules assume leasing is normal and regulate it (2105.0390(D), 2105.0322, subp. 4(B), 2105.0397, 2105.0110(D)). The practical reading is that a bona fide lease of space, where you run your own business, is the lawful structure and a disguised contractor relationship is what the penalty targets - but the clauses are live law and an inspector can cite them, so build the file that shows a lease, not a job. Outside the board, status is decided under Minn. R. 3315.0555, subp. 1, which weighs five factors - the right or lack of the right to control the means and manner of performance, the right to discharge the worker without incurring liability for damages, the mode of payment, the furnishing of materials and tools, and control over the premises - and states 'the two most important factors are items A and B'. Use it as a checklist. Strong: a written lease of a defined space at a fixed rent, your own key and hours, your own prices, client list, products, tools and insurance, your own booking, payments and sales tax registration. Weak: a percentage-of-takings split instead of rent, the owner setting prices or shifts, the owner holding the client records, the salon supplying all product and tools, dismissal at will with no lease term. Getting it wrong costs both sides: an owner who was really an employer faces unemployment contributions, payroll tax and workers' compensation exposure, and Minn. Stat. 155A.29, subd. 2(3) makes evidence of workers' compensation compliance a condition of the salon licence itself; a renter who was really an employee has paid both halves of self-employment tax.
The state salon licence is not a business licence, and Minn. R. 2105.0830 says so: compliance with chapter 2105 'does not ensure compliance with other requirements set forth by federal, state, and local laws, codes, ordinances, and regulations as they apply to business operation, physical construction and maintenance, safety, and public health.' Two local items are unavoidable. Zoning: the salon must meet applicable building, fire and zoning codes as determined by local zoning and building officials and the state fire marshal (2105.0360, subp. 1a), so confirm the address is zoned for the use before signing. Occupancy: the City of Minneapolis states that it does not license barbershops, hair salons or nail salons - 'Barbershops, hair and nail salons are licensed by the State of Minnesota' - but still requires a Certificate of Occupancy before you operate. Expect the same pattern elsewhere: no municipal cosmetology licence, but zoning sign-off, occupancy and sign permits. Home salons carry a second layer, because 2105.0360, subp. 1 anticipates ordinances or covenants banning the required exterior sign and demands written confirmation from the enforcing official, no more than three years old, kept on site.
Minn. Stat. 155A.36 makes any violation of sections 155A.21 to 155A.36 a misdemeanour. Under 155A.33 the board can also seek an injunction in Ramsey County District Court, issue a cease and desist order against a licensed or unlicensed person, and deny, refuse to renew, suspend or revoke a licence for violating a statute or rule, letting an unlicensed person under one's supervision practise for compensation, failing to display a licence, violating the infection control rules, or refusing an inspection. The fixed inspection penalties in 155A.25, subd. 1a(c) are what a renter actually meets: expired practitioner found on inspection $200, with $150 each on the manager and owner; expired salon $500; failure to display a current licence $100; failure to dispose of single-use items $500; prohibited razor-type callus shavers, rasps or graters $500; services outside the salon's category $500; owner and manager allowing an operator to work as an independent contractor $200 and the operator $100; refusal to cooperate with an inspection $500; reinspection $150; late renewal $45 practitioner, $50 salon. Penalties must be paid in full before any licence is renewed or issued (2105.0115, subp. 4(B)). Two structural traps: a delinquent salon must cease operations until the licence issues (2105.0330, subp. 7(B)), and a salon that moves, is sold or changes business structure has 60 days to be relicensed - 'If a new license has not been issued by day 61, the salon must cease operations until a license is issued' (2105.0322, subps. 6, 8, 9).
Program sources: https://www.revisor.mn.gov/statutes/cite/155A.23 · https://www.revisor.mn.gov/statutes/cite/155A.25 · https://www.revisor.mn.gov/statutes/cite/155A.27 · https://www.revisor.mn.gov/statutes/cite/155A.271 · https://www.revisor.mn.gov/statutes/cite/155A.28 · https://www.revisor.mn.gov/statutes/cite/155A.29 · https://www.revisor.mn.gov/statutes/cite/155A.33 · https://www.revisor.mn.gov/statutes/cite/155A.36 · https://www.revisor.mn.gov/statutes/cite/297A.61 · https://www.revisor.mn.gov/rules/2105/full · https://www.revisor.mn.gov/rules/3315.0555/ · https://www.revisor.mn.gov/rules/pdf/2105/2014-01-18%2002:24:09+00:00 · https://mn.gov/boards/cosmetology/salons/initial-salon-license/ · https://web.archive.org/web/20260209031659id_/https://www.revenue.state.mn.us/guide/barber-shop-salon-and-spa-services · https://web.archive.org/web/2026id_/https://www.revenue.state.mn.us/guide/tanning · https://web.archive.org/web/2026id_/https://www.revenue.state.mn.us/guide/massages · https://web.archive.org/web/2026id_/https://www.revenue.state.mn.us/guide/miscellaneous-personal-services · https://www.minneapolismn.gov/business-services/business-assistance/business-guides/salon
Minnesota licenses the salon as an establishment but has NO separate 'booth rental' or 'chair rental' license class - so an independent renter's obligation turns entirely on whether they operate their own salon space (own establishment license required) or rent a chair inside another owner's single licensed salon (covered by the owner's license). Uniquely, Minnesota also requires every salon to employ a licensed salon 'manager' (Minn. Stat. 155A.29 subd. 2), a role many states don't have, and all licenses run on an unusual 3-year cycle rather than annually. On the money side Minnesota is renter-friendly: cosmetology services are not taxed, and booth rent (a real-property lease) sits outside the sales-tax base - a sharp contrast with states that tax booth rent. The board explicitly defers the independent-contractor-vs-employee call to IRS rules rather than deciding it itself.
Renters often expect a low-cost booth or chair permit. Minnesota doesn't have one. If your suite is your own separate business you need a full salon establishment license ($350, 3-year term, verified in Minn. Stat. 155A.25) - not a booth permit.
Minn. Stat. 155A.29 subd. 2 requires the salon to employ a licensed manager. A solo suite operator typically must hold (or upgrade to) a salon manager license, which carries its own qualification and renewal ($145, verified) beyond the basic practitioner license.
Haircuts and salon services are not taxable in Minnesota, so renters assume nothing is. But reselling retail products (shampoo, tools) IS taxable - selling product without registering with the Department of Revenue for sales tax is a common violation.
Licenses renew every 3 years (not annually), and the salon application is returned if incomplete: it requires business-registration certificates (assumed name / organization), proof of $25,000 per claim / $50,000 per policy year liability insurance (Minn. Stat. 155A.29 subd. 2), and a salon floor plan.
Timeline: Individual licensing is gated by schooling (cosmetology ~1,550 hours) and exams. Once you hold a practitioner license, forming the business and assembling the salon application (assumed name, insurance, floor plan) typically takes 1-3 weeks, and board processing of a complete salon application generally runs a few weeks - roughly 2-6 weeks from complete application to an issued salon license, longer if you must also obtain a manager license or complete initial schooling.
Cost: Salon establishment license $350 initial / $225 renewal (3-year term, verified Minn. Stat. 155A.25). Individual practitioner license $195 initial / $115 renewal (3 years); salon manager renewal $145. A $150 reinspection fee applies if reinspection is required. Add MN Secretary of State business registration (roughly $35-$155) and liability insurance premiums. No Minnesota sales tax on services or on booth/suite rent.
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Build my Minnesota kit →Yes, in most independent situations. Minnesota licenses the SALON (establishment); no separate 'booth' or 'chair' rental license class exists. Minn. Stat. 155A.29 subd. 1 bars offering cosmetology services for compensation except by a licensee in a LICENSED salon (verified: 'A person must not offer cosmetology services for compensation unless the services are provided by a licensee in a licensed salon...'). If a booth/suite renter operates their own distinct salon space (a private suite that is their own business), that space must hold its OWN salon establishment license and employ a licensed salon manager. A person renting only a chair/booth WITHIN an existing salon that operates as one salon can be covered by the owner's establishment license. Either way the renter must hold an individual practitioner license. (Minn. Stat. 155A.29; https://mn.gov/boards/cosmetology/salons/initial-salon-license/)
Initial salon license $350 for a 3-year term ($250 license + $100 application fee); salon renewal $225 for 3 years ($175 + $50). Verified against Minn. Stat. 155A.25. Source: https://www.revisor.mn.gov/statutes/cite/155A.25
Yes. A board-issued individual practitioner license is required for the discipline practiced (cosmetologist, esthetician, advanced practice esthetician, nail technician, eyelash technician, or hair technician). Licenses run on a 3-year cycle. Verified fees (Minn. Stat. 155A.25): initial practitioner $195 ($155 license + $40 application), renewal $115 ($100 + $15). A solo suite operator who must serve as the salon's manager needs a manager license (manager/instructor renewal $145 = $130 + $15). Renewal also requires continuing education: 4 hours plus 4 hours per three-year cycle (Minn. Stat. 155A.271).
No pre-opening inspection is part of the initial salon application — you submit the application, business registration certificates, proof of insurance and a floor plan. Licensed salons are then inspected unannounced. What follows an inspection matters: you must correct violations and file a written report with the board within 10 business days, and post the inspection report. A reinspection costs $150 (Minn. Stat. 155A.25).
Generally NOT subject to Minnesota sales tax. Cosmetology/barber/salon/spa SERVICES are not an enumerated taxable service in Minnesota, and booth/suite RENT is a lease of real property, which is not an enumerated taxable service under Minn. Stat. ch. 297A - so booth/suite rent is generally not taxed. Caveat: RETAIL PRODUCT sales (shampoo, tools, etc.) ARE taxable, so a renter who resells products must register with the Department of Revenue and collect sales tax. The Revenue 'Barber Shop, Salon, and Spa Services' guide does not address booth rent by name - confirm any specific rental arrangement with the Minnesota Department of Revenue. (Note: the live Revenue guide was inaccessible during this verification due to an anti-bot redirect; this treatment is consistent with Minn. Stat. ch. 297A and is retained but should be re-confirmed with the Department of Revenue.) Source: https://www.revenue.state.mn.us/guide/barber-shop-salon-and-spa-services
No. SalonBoothLicense gives general information based on each state's published cosmetology/barbering and tax rules, dated to when we last verified them, and is not a guarantee of licensure. Booth/suite rules also depend on local permitting and your written rental agreement. Always confirm with your state board and local authority.
Sources: mn.gov. Verified 2026-08-17. General information, not legal advice and not a guarantee of licensure — confirm with your state board and local authority before you open.