Salon Booth Rental Laws in North Dakota (2026)

Booth and suite rental in North Dakota — the whole program

Who may rent a booth or a suite in North Dakota

Before you rent a booth or a suite in North Dakota you must hold your own individual licence from the North Dakota State Board of Cosmetology under N.D.C.C. ch. 43-11. Section 43-11-13 is the gate: an individual may not advertise, engage in, or attempt to engage in the practice of cosmetology, esthetics, advanced esthetics, or manicuring, or conduct an establishment or school, 'unless having first obtained the proper license', and the same section forbids employing an unlicensed individual to perform cosmetology. Cosmetology is defined broadly in Section 43-11-01(10) and reaches hair care of every kind, esthetics, eyelash and eyebrow work including extensions, and manicuring, while carving out natural hair braiding and threading, which are not licensed here. Shampooing is not a free pass: N.D. Admin. Code Section 32-01-02-01(18) provides that shampooing requires a cosmetology licence. To earn the licence you file a sworn application with proof of board-approved training and the fees required by Section 43-11-28 (Section 43-11-21), then pass the theoretical and practical examination described in Section 43-11-23. Training hours are set by rule in N.D. Admin. Code ch. 32-04-01: fifteen hundred hours for cosmetology, six hundred for esthetics, three hundred fifty for manicuring. If you are already licensed elsewhere, Section 43-11-25 gives two doors: endorsement without examination where the other jurisdiction's standards are substantially similar or equivalent, that jurisdiction verifies you met its minimum education requirements, you have held good standing everywhere for at least a year, you never had a licence revoked or surrendered while under investigation, and you pay all applicable fees; or, under Section 43-11-25(2)(b), proof of the board's required hours or 'substantially equal work experience, determined at a rate of one thousand hours as equivalent to one hundred course curriculum hours, capped at five hundred hours if gained in the three years immediately preceding the application'. Applicants trained outside the United States pay for a board-approved credentialing review (Section 43-11-25.1). Active-duty military members and their spouses, and veterans and their spouses within six months of honourable discharge, receive provisional licensure without examination and without fee under Section 43-11-25.2, valid three years, on expedited handling. One point matters specifically for booth renters: under the rules effective 1 January 2026 you no longer need a master-level licence to hold an independent licensee licence. The board's resources page states master licences are 'Still available' but 'No longer required for independent licensees', and adds that 'A master licensee does not need to be present.' A master licence remains available under Section 43-11-26 on evidence of at least one thousand hours of practice plus the original fee, and is still worth holding if you plan to sign off apprentice or master hours. Barbers are separate: a barber is licensed by the North Dakota Board of Barber Examiners under ch. 43-04, and none of the independent licensee machinery below applies to a barber licence.

The individual licences that qualify you

• Cosmetologist licence: fifteen hundred hours of board-approved curriculum (N.D. Admin. Code ch. 32-04-01), sworn application under N.D.C.C. Section 43-11-21, theoretical and practical examination under Section 43-11-23. Statutory maximum $50 original and $50 annual renewal (Section 43-11-28(2)(a)(9)-(10)); renewal form SFN 61745 (08-2025) charges $50.
• Esthetician licence: six hundred hours of board-approved curriculum, same application and examination route. Statutory maximum $50 original and $50 annual renewal (Section 43-11-28(2)(a)(13)-(14)).
• Manicurist licence: three hundred fifty hours of board-approved curriculum, same route. Statutory maximum $50 original and $50 annual renewal (Section 43-11-28(2)(a)(19)-(20)).
• Advanced esthetician licence: a distinct licence for advanced esthetics as defined in Section 43-11-01(3) - advanced chemical peels, microneedling, nonablative procedures, extractions using lancets. Statutory maximum $50 original and $50 annual renewal (Section 43-11-28(2)(a)(7)-(8)). Section 43-11-26.2 requires a separate written application and proof of board-approved training before using those devices or peels. A grandfather route under Section 43-11-26.1 runs to 31 December 2027 for cosmetologists and estheticians with a year of practice immediately preceding 1 January 2026, on four hours of safety and infection control training, active OSHA bloodborne pathogens certification, active first aid and CPR, and either a notarised affidavit of three hundred supervised hours under a physician, physician assistant or nurse within five years or one hundred fifty hours of advanced esthetic training; after that window the requirement is five hundred hours.
• Master cosmetologist, master esthetician, master manicurist: granted under Section 43-11-26 on evidence of at least one thousand hours of practice under the direction and control of a master licensee of the appropriate class, plus the original licensure fee. Statutory maximum $50 original and $50 annual renewal per class. No longer a prerequisite for the independent licensee licence.
• Instructor licence: requires a current North Dakota individual licence plus board-approved instructor training and a theory and practical examination (Section 43-11-27). Statutory maximum $50 original and $50 per year renewal. Instructors owe at least twelve hours of continuing education annually (Section 32-05-01-03).
• Independent licensee licence: the booth or suite renter's own business licence, defined in Section 43-11-01(13) as 'a licensed individual who maintains a separate license and practices cosmetology, manicuring, esthetics, or advanced esthetics at a location within, but separate, from a cosmetology establishment', with the sting that 'The licensee must abide by the same provisions of this chapter as an establishment.' Statutory maximum $150 original and $100 per year renewal (Section 43-11-28(2)(a)(3)-(4)); the board charges exactly those amounts on SFN 60681 and SFN 61745.
• Establishment licence: held by whoever owns or operates the physical shop, spa or suite gallery (Section 43-11-15). Statutory maximum $150 original and $100 per year renewal; the board charges $150 on application SFN 11795 (05-2026) and $100 renewal on SFN 61745. Separately, continuing education for individual licensees begins with the 2028 renewal cycle at four hours a year, eight for advanced estheticians (Sections 32-05-01-01(7), 32-05-01-08); legacy status under Section 43-11-28(7), $25 a year after forty-five years of licensure, expressly does not apply to an instructor, establishment or independent licensee licence.

Do you need your own establishment licence?

North Dakota does not let a booth renter hide under the shop's licence, and it does not make the renter buy a full establishment licence either. It created a third thing: the Independent Licensee Licence. The definition in N.D.C.C. Section 43-11-01(13) is blunt about the consequence - an independent licensee is 'a licensed individual who maintains a separate license and practices cosmetology, manicuring, esthetics, or advanced esthetics at a location within, but separate, from a cosmetology establishment', and 'The licensee must abide by the same provisions of this chapter as an establishment.' The board says the same in plain English: the licence 'allows you to operate as your own business within a licensed establishment. You must hold both an individual license and an independent licensee license.' So the arithmetic is two licences for you, plus a third held by your landlord, since the building must separately carry an Establishment Licence. The rule that operationalises this is N.D. Admin. Code Section 32-03-01-10, rewritten effective 1 January 2026. Subsection 1 permits any establishment to be divided into independent licensee spaces, requires each independent licensee to be 'individually licensed by the board as a separate entity', and provides that each licence 'only may be issued to a single individual licensee' - no company-held or shared licence, and no way to cover a second stylist under yours. Subsection 2 lists your duties: maintain an active individual licence and an independent licensee licence 'for each establishment'; maintain an active lease with a licensed establishment as your primary affiliated location; follow every applicable law and rule in your station or suite and in shared space; display both licences in clear view in your immediate work area; and allow the board or its designees into your workspace 'whether or not an independent licensee is on the premises'. Subsection 3 puts matching duties on the host: an active establishment licence in good standing, verification that every licensee on the premises holds active individual and independent licensee licences at all times, a workspace meeting all of title 32 and ch. 43-11, and inspector access 'including providing access to unattended independent licensee suites'. The relief for suite operators is the shared-facilities carve-out in Section 32-03-01-10(3)(c): your workspace must meet every title 32 requirement 'except that there may be common reception areas, common toilet facilities, common product dispensing area, and common entrances and exits'. That sentence is what makes a suite gallery workable without every suite building its own restroom and lobby.

The licence is issued by North Dakota State Board of Cosmetology, 4719 Shelburne St, Suite 1, Bismarck, ND 58503, bocinfo@nd.gov, (701) 224-9800.

1. Confirm your individual licence is active and covers every service you intend to sell, and register your business name with the Secretary of State first. SFN 60681 states that 'Business names must be registered as a trade name, LLC, or Corporation with the Secretary of State's office' (sos.nd.gov, (701) 328-2900). A trade name is $25 and runs five years (N.D.C.C. Section 47-25-04); LLC articles of organisation are $135 (Section 10-32.1-92(1)) with a $50 annual report due before 16 November each year. If your individual licence lapsed, Section 43-11-29 allows reinstatement within one year on the late fee plus current renewal, between one and five years on those plus passing the North Dakota law and rules examination, and not at all after five years.
2. Verify the establishment holds a current establishment licence, then sign the lease. You must give the establishment name, owner's name, phone and full address with suite number on your application, and Section 32-03-01-10(3)(b) makes the owner responsible for checking your licences too. Section 32-03-01-10(2)(b) requires an active lease with a licensed establishment as your primary affiliated location; without it there is nothing for the independent licence to attach to.
3. Complete Independent Licensee Licence Application SFN 60681 (05-2026): legal business name, opening date, your name, your individual licence number and type, the establishment details, phone numbers and email, whether the space is new, a change of location or an additional location, and whether you will provide advanced esthetic procedures requiring healthcare provider oversight.
4. Fill in the Independent Space Checklist on the form: sign visible at entrance; disinfection supplies and stations; fire extinguisher; hot and cold water supply separate from restroom; adequate enclosed storage for tools; adequate lighting, ventilation and work space; adequate restrooms easily accessible; blood exposure procedure poster; covered waste containers; first aid kit and eye wash; hazardous and cleaning supplies out of public reach; adequate electrical outlets; and, for advanced esthetics, the requirements of Section 32-03-01-10.2.
5. Draw the floor plan on page 2 showing entrances and exits with the main entrance labelled, the reception area, restrooms, locations of workstations, suites and chairs, supply and dispensing areas, the exhaust fan, the dryers and the sinks; you may attach a copy instead. Section 32-03-01-02 also requires a revised floor plan on any major change.
6. Sign the attestation and certification before a notary. The attestation records that independent licensees 'are not employees of the licensed establishment' and that you are 'an independently operated business' subject to all board requirements; the certification is made under penalty of perjury.
7. Mail or deliver the original notarised application with the $150 fee to the board at 4719 Shelburne St Suite 1, Bismarck, ND 58503, at least two weeks before your opening date; no payment is accepted without a complete application. Paper is currently the only route - the board states it will launch a new online licensing system on 1 September 2026 and that until then online links remain disabled.
8. Wait for the opening inspection and for the licence to issue before you take a client. Section 43-11-37(1) requires each new establishment, independent licensee and school to be inspected by the board or its designee; the board's guidance is that your assigned inspector contacts you to schedule once your application is received, and that you may not open, advertise or provide services until the licence has issued and the opening inspection has been successfully completed. In parallel, if you will resell retail products apply for a sales and use tax permit through ND TAP, which the Tax Commissioner advises doing thirty days before opening.

Fee: Independent Licensee Licence, original: $150. The figure appears twice - as the statutory ceiling in N.D.C.C. Section 43-11-28(2)(a)(3), 'Independent licensee, original license ... $150.00', and as the amount charged on SFN 60681 (05-2026): 'A fee of $150.00 must be submitted with application.' Fees are not prorated and are not returnable (Section 43-11-28(4)). If you take over the whole shop rather than a suite, the establishment licence is a separate $150 original fee, again both the statutory maximum and the amount printed on application SFN 11795. Ancillary board fees, all statutory maxima under Section 43-11-28(2)(a): duplicate licence $20, individual or business name change $20, reciprocity licence $105, reinspection $75, apprentice registration $15, apprentice trainer $25, student registration $15, transcript $20, verification $20.

Renewal: Independent Licensee Licence renewal: $100 per year. Section 43-11-28(2)(a)(4) caps it at '$100.00 per year' and renewal application SFN 61745 (08-2025) charges exactly $100 for 'Independent Licensee Renewal' (and $100 for an establishment renewal, $50 for each individual licence, $50 for an instructor licence, $20 for a duplicate). Every licence the board issues expires on 31 December (Sections 43-11-29(1) and 43-11-29.1(1); N.D. Admin. Code Sections 32-03-01-01 and 32-05-01-01(2)), so the independent licence, the establishment licence and your individual licence all fall due the same day regardless of issue date. Late fees are set by Section 43-11-28(2)(b): $50 for an establishment or independent licensee late renewal within one year, then $100 per year expired after that; $50 for an individual late renewal within one year and $150 after one year but before five. The renewal form restates it as 'Include a $50 penalty fee for EACH license being renewed if paid or postmarked after December 31st', which for a booth renter holding an individual licence and an independent licence means two penalties, not one. Section 43-11-29.1(4) is the hard stop: after twelve months from expiry you pay the late penalty for each year not renewed and reapply for independent licensure, so application, notarisation, floor plan and opening inspection start over. Late renewal is also one of the four triggers for additional inspections under Section 43-11-37(3)(c).

What the booth and suite rules actually say

Booth rental and suite rental are both squarely legal in North Dakota and, unlike most states, they are named and regulated in the statute and the rules rather than left to implication. The operative text is N.D. Admin. Code Section 32-03-01-10, rewritten effective 1 January 2026: 'Any establishment may be divided into independent licensee spaces. Each independent licensee must be individually licensed by the board as a separate entity and each independent licensee license only may be issued to a single individual licensee.' What North Dakota does not do is treat you as a lighter-touch salon. Section 43-11-01(13) says an independent licensee 'must abide by the same provisions of this chapter as an establishment', and the board's business licensure page repeats that independent licensees 'Must meet the same requirements as an establishment'. In practice the sanitation chapter, the posting rules, the advertising rules, the inspection regime and the renewal calendar all land on you personally rather than on your landlord. The commercially important detail is the shared-facilities exception in Section 32-03-01-10(3)(c), which requires the establishment to give each independent licensee a workspace meeting all of title 32 and ch. 43-11 'except that there may be common reception areas, common toilet facilities, common product dispensing area, and common entrances and exits'. Read against Section 32-02-01-02(1)(a) - adequate workspace, reception area, supply area with enclosed cabinets, readily accessible toilet facilities - that exception is what lets a suite gallery exist. It does not excuse the rest: Section 32-02-01-05 requires hot and cold running water and proper plumbing 'located within the confines of the premises, separate from a bathroom facility', and the SFN 60681 checklist asks you to certify 'Hot and cold water supply separate from restroom', so a suite with no sink of its own is a problem the shared-restroom carve-out does not solve. Multiple locations multiply the licence: Section 32-03-01-10(2)(a) requires an individual licence and an independent licensee licence 'for each establishment', and SFN 60681 has an explicit 'Additional Location' box, so a stylist working two galleries buys two independent licences at $150 each and renews both at $100 each. There is a route to work outside the four walls. Section 32-03-01-14 permits services outside an establishment if the licensee is an establishment owner, an employee, or an independent licensee; follows all applicable laws and rules; the owner or manager notifies the board; and the licensee carries a kit with adequate tools and supplies, the individual licence and the independent licensee or establishment licence, a copy of the rules of cleaning and disinfecting, a compliant first-aid kit, and separate labelled enclosed containers for soiled and clean supplies. Advanced esthetic procedures may never be practised outside a licensed establishment, and Section 32-03-01-10(2)(e) lets the board inspect off-site practices and equipment on reasonable notice or after a complaint. Section 43-11-15.1 exempts a licensed nursing home, basic care facility or assisted living centre from holding an establishment licence if it permits licensed cosmetologists to serve residents only and does not advertise as an establishment, but serving non-residents there requires an establishment or independent licensee licence for that location (Section 32-03-01-15). Two further limits: you cannot run the booth out of your home in the ordinary sense, because Section 32-02-01-02(1)(b) requires complete floor-to-ceiling separation from living or sleeping quarters with a solid door kept closed during business hours, and subsection (1)(d) forbids an establishment in a recreational vehicle; and the transfer rule bites when you buy an existing suite business, because Section 32-03-01-03.1 makes purchasers meet the requirements of a new establishment with the seller's closure form accompanying the application, while Section 32-03-01-01 requires a new licence application before any change of ownership, location or address. When you leave, Section 32-03-01-11 requires notice by establishment closure form within ten business days of the final date of operation.

What your own space must have

• Sign and workspace. Section 32-03-01-09 requires a maintained sign showing the name of the establishment, clearly visible to anyone approaching the entrance, and SFN 60681 asks the independent licensee to certify the same. Section 32-02-01-02(1)(a) requires adequate workspace ensuring safe working conditions, a reception area, a supply room or designated supply area with enclosed cabinets, readily accessible toilet facilities, and facilities for maintaining clean and sanitary conditions - subject to the carve-out in Section 32-03-01-10(3)(c).
• Water, sanitation and waste. Section 32-02-01-05 requires hot and cold running water and proper plumbing within the confines of the premises, separate from a bathroom facility; a safe water supply approved by the local health authority or the state department of health; sewage and liquid waste disposal approved by the local health authority, with portable sink wastewater emptied at least daily when in use; sharps and blood disposal per local health authority or Department of Environmental Quality guidelines; and solid waste collected at least weekly into approved covered containers. Section 32-02-01-12 requires clean disinfected toilet facilities and handwashing facilities with hot and cold water, liquid soap in a dispenser, and disposable towels or an air dryer.
• Lighting, ventilation, fire and electrical. Section 32-02-01-03 requires adequate lighting at all workstations; a ventilation system such as an exhaust fan or air-to-air exchange where required by local building code, mandatory and code-compliant for any establishment offering chemical hair or nail services; and a fire extinguisher mounted in public view with all employees instructed in its operation. Section 32-02-01-11(9) requires enough electrical outlets that no cord or connection is a hazard.
• Separation from living quarters and vehicles. Section 32-02-01-02(1)(b) requires complete floor-to-ceiling separation from living or sleeping quarters with a solid door kept closed during business hours and permits no services in any room used as living or sleeping quarters. Subsection (1)(d) prohibits an establishment in a recreational vehicle such as a motor home, camper or pull-behind enclosed trailer. Public entrances and exits must comply with local or state building codes.
• Surfaces and floor covering. Section 32-02-01-04 requires all surfaces, floors and fixtures kept clean and in good repair at all times, prohibits carpeting and rugs in the working area (permitted only in reception areas), requires shampoo bowls free of hair and debris and cleansed and disinfected after each use, and requires a neat clean dispensing area with the supply area not easily accessible to the public.
• Disinfection. Section 32-02-01-08 requires all tools, instruments, shampoo bowls and other articles contacting a client to be cleaned and disinfected before use on each client, disinfectant and an enclosed container available at all times, and no reuse of any single-use item. Section 32-02-01-10 sets the sequence: clean, rinse, complete immersion of nonporous implements in an enclosed container with proper disinfectant for the manufacturer's contact time, air dry, store covered; shears and razors are wiped then sprayed and kept wet for the label contact time, and nonimmersible electrical equipment including cords is treated the same way. An ultraviolet light is not an acceptable form of disinfection (Section 32-01-02-01(9)).
• Products, wax and containers. Section 32-02-01-11 requires germicidal solutions fresh and free of contaminants; fluids, creams, waxes and powders kept in clean enclosed containers and dispensed with a clean spatula, shaker, pump or spray, with double dipping prohibited; new gloves for every waxing or tweezing service, single-use wax applicators, portioned paraffin, cleaned wax pots, single-use roll-on cartridges only; manufacturer labels on all original containers with poisonous substances designated; and a separate enclosed storage area with caustic or harmful materials out of reach of clients and the public. Neck brushes may not be used at all.
• Laundry, first aid, hygiene and animals. Section 32-02-01-09 requires clean towels, sheets, blankets, robes and capes kept in an enclosed container until used, laundered after each use, and laundered commercially or in hot water with detergent and dried on high heat. Section 32-02-01-07 requires a readily accessible first-aid kit with at minimum adhesive dressings, gauze and antiseptic, tape, topical antibiotics, eyewash and gloves, and Section 32-02-01-07.1 requires a blood exposure procedure poster in or near it. Section 32-02-01-06 requires handwashing before and after each client service and after restroom use, permits sixty percent alcohol hand sanitiser only when hands are visibly clean, and forbids carrying tools in clothing pockets, pouches or holsters. Section 32-02-01-13 bars animals other than service animals.
• Advanced esthetics rooms, if you offer them. Section 32-03-01-10.2 applies to independent licensees by name and requires a room enclosed by floor-to-ceiling walls and a door, physically separated from any hair or nail service area, with no food or beverages in the room; single-use device tips never reused; a written laser safety programme consistent with ANSI Z136.3 for nonablative laser procedures; written aftercare given to each client; client records kept securely for at least three years including signed procedure-specific informed consent, date, type and area of procedure, licensee name and licence number, medical history and contraindication screening; a written safety plan complying with 29 CFR 1910.1030; posted emergency protocols; and reporting of serious adverse events within ten business days.

What you must display

• Your individual practitioner licence and your independent licensee licence, both displayed in clear view in the immediate work area of your space (N.D. Admin. Code Section 32-03-01-10(2)(d)). N.D.C.C. Section 43-11-14(3) requires every licence the board issues to be displayed in clear view to the public, and Section 32-05-01-01(6) repeats the duty for the individual licensee. Failure to display properly is listed by the board as a critical violation that can trigger reinspection, and Section 43-11-31(6) makes it an independent ground for board action.
• A sign showing the name of your business, clearly visible to anyone approaching the entrance (Section 32-03-01-09; certified on the SFN 60681 checklist).
• A copy of the rules of cleaning and disinfecting, posted for the information and guidance of all persons employed or studying there (Section 32-02-01-01). A copy must also travel in your kit if you provide services outside the establishment (Section 32-03-01-14(4)(c)).
• A blood exposure procedure poster, in or near the first-aid kit (Section 32-02-01-07.1; certified on the SFN 60681 checklist). If you offer advanced esthetic procedures under healthcare provider oversight, the supervising provider's licence must be prominently displayed in clear view to the public (Section 32-03-01-04) and emergency protocols posted conspicuously within the procedure room (Section 32-03-01-10.2(7)).
• Advertising is a posting rule too. Section 32-03-01-09.1, effective 1 January 2026 and reprinted on page 1 of SFN 60681, requires all advertising to be truthful and accurate with no false or misleading claims; to clearly identify the name as it appears on the licence of the licensed establishment or school, or the name of the licensed individual providing the services; to separate and identify which services fall under which regulatory jurisdiction where more than one regulator is involved; and, for any advertised service requiring supervision of a licensed health care provider, to identify that provider by name and professional title. Knowingly false or deceptive advertising, and advertising outside your scope of practice, are separate grounds for discipline under Section 43-11-31(5) and (9).

Inspection

North Dakota inspects booth renters personally, and it inspects before you open. N.D.C.C. Section 43-11-37(1) states that 'Each new establishment, independent licensee, and school must be inspected by the board or the board's designee to determine compliance with the laws, rules, and regulations of this chapter as determined by the board.' The board's guidance turns that into a sequence: an opening inspection is required for all new establishments; your assigned inspector contacts you to schedule it once the application is received; and you may not open, advertise or provide services until your licence has issued and the opening inspection has been successfully completed. That is why SFN 60681 must be filed two weeks before your opening date - the lead time is the inspection, not the paperwork. After opening, Section 43-11-37(2) subjects every establishment, independent licensee and school to routine inspections as determined by the board, and Section 43-11-37(3) authorises additional inspections if you had a violation in a previous inspection, changed ownership, did not timely renew, or are on probation because of board discipline; a reinspection fee may be charged (Section 43-11-37(4)) and Section 43-11-28(2)(a)(29) caps it at $75. Timing and notice run against you: inspections must be made during regular hours of operation or any time cosmetology, esthetics, advanced esthetics or manicuring is being practised or taught unless all interested persons agree otherwise (Section 43-11-37(5)), and may be authorised 'with or without notice to the licensee' (Section 43-11-37(6)). Complaint-driven inspections are unbounded in time: Section 43-11-38 permits inspection in response to a specific complaint 'at any time'. Refusal to allow or interference with any inspection is itself cause for disciplinary action under Section 43-11-39. Suite renters should read Section 32-03-01-10(2)(e) and (3)(d) together: you must allow the board or its designees into your workspace 'whether or not an independent licensee is on the premises', and the establishment owner must give inspectors access to the entire premises 'including providing access to unattended independent licensee suites for inspection' - your landlord holds a key and is obliged to use it. The reinspection trigger list is in N.D. Admin. Code Section 32-02-01-15: reinspection may be warranted where there is a critical violation - a single serious violation related to health, sanitation or safety, including improper disinfection, prohibited tools, cross-contamination and not properly displaying licences - or two or more minor noncritical violations, or failure to correct violations noted previously. The board's enforcement page lists what inspectors review: licensing and required postings, sanitation and disinfection practices, storage of tools and supplies, use of prohibited tools or products, scope of practice compliance, and facility conditions.

Tax — on your rent and on your services

Two different questions with two different answers, and North Dakota's are unusually clean because the sales tax base is enumerated in the statute. On the rent you pay: North Dakota imposes its five percent sales tax under N.D.C.C. Section 57-39.2-02.1(1) on the gross receipts of retailers from all sales at retail of a closed list - tangible personal property consisting of goods, wares or merchandise; communication services excluding internet access; tickets or admissions to places of amusement, entertainment or athletic events; magazines and periodicals; 'the leasing or renting of a hotel or motel room or other accommodations'; the leasing or renting of tangible personal property whose title transfer has not already been subjected to sales or use tax; and computers and prewritten computer software. The lease or rental of real property - a chair area, a room, a suite - appears nowhere on that list, and personal-care services are not an enumerated taxable service, so straight booth or suite rent is not subject to North Dakota sales tax. Two adjacent traps are real. First, subdivision (f) taxes the leasing or renting of tangible personal property, so if your landlord rents you equipment for a stated separate charge that component is taxable even though the space is not. Second, the same enumerated-list logic that spares your rent spares your service revenue: haircuts, colour, facials and manicures are not enumerated, so you do not charge sales tax on services. On what you sell: retail product sales are the classic five percent tangible personal property sale under Section 57-39.2-02.1(1)(a), so if you retail shampoo, styling product or tools you need a North Dakota sales and use tax permit and must collect and remit. The Tax Commissioner instructs applicants to apply through ND TAP thirty days prior to opening and assigns filing frequency - monthly, quarterly or annual - based on expected volume. Local tax is a second layer: cities and counties may levy sales and use taxes on top of the state rate, so use the Tax Commissioner's Sales Tax Rate Lookup against your exact street address rather than assuming the city rate. Income tax: the schedule in Section 57-38-30.3(1) is genuinely low. As enacted, a single filer other than head of household or surviving spouse pays 0.00 percent on North Dakota taxable income up to $44,725, then 1.95 percent of the amount over $44,725 up to $225,975, then $3,534.38 plus 2.50 percent of the amount over $225,975; married filing jointly starts its zero bracket at $74,750 and its 2.50 percent bracket at $275,100; head of household at $59,950 and $250,550; married filing separately at $37,375 and $137,550. Those are the statutory base figures, and Section 57-38-30.3(1)(g) requires the tax commissioner to prescribe new schedules each year by applying the federal cost-of-living adjustment to the bracket dollar amounts while leaving the rates unchanged, so check the published schedule for your filing year. North Dakota taxable income starts from federal taxable income (Section 57-38-30.3(2)), so your Schedule C profit flows through with federal deductions already taken. Self-employment also brings federal self-employment tax and quarterly estimated payments; confirm the ND-1ES thresholds with the Office of State Tax Commissioner (salestax@nd.gov, (701) 328-1246). Nothing here removes the ordinary consequence of being an independent business: your landlord will not withhold income tax, will not pay half of your Social Security and Medicare, and will typically issue you no wage statement at all.

Renter or employee: the classification test

North Dakota's cosmetology rules and its employment law point the same direction but they are not the same test, and passing one does not decide the other. The board's position is fixed by the attestation you sign on SFN 60681: you understand that 'Independent Licensees are not employees of the licensed establishment' and that you are 'an independently operated business' subject to all board requirements. N.D. Admin. Code Section 32-03-01-10 backs it by licensing you 'as a separate entity', requiring your own lease, and making you personally answerable for compliance in your space. That is useful evidence, because it is a sworn, contemporaneous, government-filed statement of how the parties structured the arrangement. It is not conclusive. Employment status for unemployment insurance is decided by Job Service North Dakota, and by the Department of Labor and Human Rights for its own purposes, using the common law test - twenty factors focused on the degree of control the business has over the worker: instructions; training; integration; services rendered personally; hiring, supervising and paying assistants; a continuing relationship; set hours of work; full time required; doing work on the premises; order or sequence set; oral or written reports; payment by hour, week or month; payment of business or travelling expenses; furnishing of tools and materials; significant investment; realisation of profit or loss; working for more than one firm at a time; making service available to the general public; right to discharge; and right to terminate. The Department of Labor and Human Rights, which operates an Independent Contractor Verification process, is explicit that there is no set number of factors that must be met and that it reviews the circumstances as a whole. It also warns of the commonest misconception in salon disputes: how a worker is paid is not one of the twenty factors, so paying weekly rent instead of taking a commission split does not by itself make anyone a contractor. Applied to a booth, the factors that most often flip a nominal renter into an employee are the operational ones your landlord may be tempted to impose: setting your hours, requiring full-time work, dictating the order or sequence of your work, requiring reports, furnishing all your tools and product, forbidding you to work anywhere else, and reserving a right to discharge you rather than terminate a lease under its own terms. The protective facts are the ones the board's scheme already pushes you toward: your own licence in your own registered business name, your own lease, your own investment in tools and product, your own client list and pricing, your own advertising, your own risk of profit and loss, and freedom to serve the public generally. Job Service North Dakota's coverage rules matter more to your landlord than to you but explain the pressure: an employer must register for unemployment insurance within twenty days after first employing workers if it has one or more workers in twenty different weeks in a calendar year or has paid $1,500 or more in wages in a calendar quarter, and the taxable wage base is set yearly at seventy percent of the calculated statewide average annual payroll. If the salon is later found to have employed you, that liability is retroactive. A separate determination exists for workers' compensation: Workforce Safety & Insurance runs its own contractor-or-employee analysis, and a booth renter with no employees should confirm with WSI whether coverage is required or whether optional sole-proprietor coverage is appropriate. Finally, note the board rule easy to misread as an employment rule: Section 32-03-01-07(1) requires establishments to document hours for master licence applications and forbids a manager from declining to do so, with records kept at least two years after any separation of employment. That duty runs to the establishment, so if you are accruing master hours as a renter, confirm in writing who is signing them.

What your city or county may add

State licensure is a floor, not a ceiling. N.D.C.C. Section 40-05-01(24) gives a municipality power 'To fix the amount, terms, and manner of issuing and revoking licenses', which is the hook for a general municipal business licence where your suite sits; home rule cities have broader powers still. Zoning is the other reliably local layer: the board repealed its own zoning rule (N.D. Admin. Code Section 32-03-01-03, repealed effective 1 July 1988), so nothing in the cosmetology rules checks whether your address is zoned for a salon - confirm that with the city before you sign a lease for a converted space. Building, plumbing and fire code compliance is expressly pushed to local authority: Section 32-02-01-02(1)(c) requires public entrances and exits to comply with local or state building codes, Section 32-02-01-03 requires exhaust fans, air exchange systems, fire extinguishers and lighting to comply with state and local building codes, and Section 32-02-01-05 requires all plumbing to comply with state and local plumbing code, a safe water supply approved by the local health authority or the state department of health, and waste disposal approved by the local health authority. Local sales tax is the layer most likely to cost you money quietly, since cities and counties may levy on top of the five percent state rate. Business-entity obligations are state-level but recurring: an LLC must deliver its annual report to the Secretary of State before 16 November each year with a $50 fee (Sections 10-32.1-89(3), 10-32.1-92(25)), late filing adds another $50, and reinstatement after termination is $135; a trade name registration lasts five years and costs $25 (Section 47-25-04). If your gallery hosts other trades, Section 32-03-01-10.1 shapes your neighbours: tattooing, body piercing and massage therapy must be walled off with a lockable door or placed on a different floor with signage avoiding the impression the space is part of the cosmetology establishment, while a barber may share the open floor without a wall and stays under the Board of Barber Examiners. If you are a barber, ch. 43-04 has no independent-licensee concept at all: Section 43-04-42(1)(e) charges $50 for an annual barbershop licence 'to be paid by each shop owner in advance', Section 43-04-42(2) requires a $100 inspection fee with each application to open a barbershop, restoration of an expired barbershop licence adds a $20 penalty, and a mobile barbershop costs $150 to register and $100 to renew - so a barber running an independent business should expect shop licensure and confirm the treatment of a rented chair with the Board of Barber Examiners.

What operating unlicensed costs

The criminal exposure is the same for the shop and for the renter, because North Dakota deliberately equates them. N.D.C.C. Section 43-11-35 provides that any individual who without a licence as required under the chapter wilfully practises any of the occupations, maintains a school, or acts or advertises in any capacity in violation of the chapter or a rule adopted by the board is guilty of a class B misdemeanor. Under Section 12.1-32-01(6) a class B misdemeanor carries a maximum penalty of thirty days' imprisonment, a fine of one thousand five hundred dollars, or both. Because Section 43-11-01(13) makes an independent licensee abide by the same provisions as an establishment, and Section 43-11-13 forbids conducting an establishment without the proper licence, opening your suite before the independent licensee licence issues and the opening inspection passes is the offence, not a paperwork lapse; advertising counts on its own under Section 43-11-13(1). Administrative discipline is the more common consequence. Section 43-11-30 lets the board place a licence on probation, revoke it, or suspend it upon proof of a violation of the chapter or of a board rule, and Section 43-11-31 lists the grounds: fraud in passing the examination; conviction of an offence the board determines has a direct bearing on the ability to serve the public in a licensed profession; grossly unprofessional or dishonest conduct; addiction to intoxicating liquor or drugs to an extent rendering the individual unfit to practise; knowingly false or deceptive advertising; failure to display the licence; violation of the chapter or rules; permitting an unlicensed individual to practise or teach; and advertising or providing services outside the licensee's scope of practice. Two of those - failure to display, and permitting an unlicensed individual to practise - are exactly what a routine booth inspection produces. Refusal to allow or interference with an inspection is separately cause for discipline under Section 43-11-39. Money penalties attach to process rather than punishment: a reinspection fee capped at $75; late renewal at $50 within the first year and $100 per year expired thereafter for an independent licensee or establishment licence, and $50 then $150 for an individual licence (Section 43-11-28(2)(b)); and the practical penalty in Section 43-11-29.1(4), which after twelve months of expiry forces you to pay the late penalty for each year not renewed and reapply from the beginning. For an individual licence, Section 43-11-29(5) bars reinstatement entirely after five years. Procedure is protective: hearings are conducted under ch. 28-32 (Section 43-11-32), the board may subpoena witnesses and documents (Section 43-11-33), and an appeal lies to the district court of the county of residence of the affected individual (Section 43-11-34). Advanced esthetics adds a reporting obligation: Section 32-03-01-10.2(8) requires any licensee or establishment aware of a serious adverse event - medical or surgical intervention beyond routine aftercare, second degree or higher burns, significant or atypical scarring, infection requiring prescription medication, pigmentary changes requiring medical intervention, hospitalisation, or permanent injury - to report it within ten business days on the board's form.

Program sources: https://ndlegis.gov/cencode/t43c11.pdf · https://ndlegis.gov/cencode/t43c04.pdf · https://ndlegis.gov/cencode/t12-1c32.pdf · https://ndlegis.gov/cencode/t57c39-2.pdf · https://ndlegis.gov/cencode/t57c38.pdf · https://ndlegis.gov/cencode/t10c32-1.pdf · https://ndlegis.gov/cencode/t47c25.pdf · https://ndlegis.gov/cencode/t40c05.pdf · https://ndlegis.gov/prod/acdata/pdf/32-01-02.pdf · https://ndlegis.gov/prod/acdata/pdf/32-02-01.pdf · https://ndlegis.gov/prod/acdata/pdf/32-03-01.pdf · https://ndlegis.gov/prod/acdata/pdf/32-04-01.pdf · https://ndlegis.gov/prod/acdata/pdf/32-05-01.pdf · https://www.nd.gov/eforms/Doc/sfn60681.pdf · https://www.ndcosmetology.com/wp-content/uploads/60681-Independent.pdf · https://www.ndcosmetology.com/wp-content/uploads/11795-Establishment-2026.pdf · https://www.ndcosmetology.com/wp-content/uploads/Updated-Renewal-2025.pdf · https://www.ndcosmetology.com/forms/ · https://www.ndcosmetology.com/resources/ · https://www.ndcosmetology.com/business-establishment-licensure/ · https://www.ndcosmetology.com/inspections-enforcement/ · https://www.tax.nd.gov/business/sales-and-use-tax · https://www.jobsnd.com/unemployment-business-tax/employers-guide · https://www.nd.gov/labor/common-law-test · https://www.workforcesafety.com/employers/forms-resources/contractor-or-employee · https://sos.nd.gov/