How Much Does It Cost to Start a Hair Salon / Barbershop in Massachusetts?

Massachusetts has a cost index of 1.3x the national average for hair salon / barbershop businesses. Here is a complete line-by-line cost breakdown based on local data.

Budget Setup
$32,500
Mid-Range
$130,000
Premium Setup
$390,000
Massachusetts is a global leader in higher education, biotech, healthcare, and technology, with the Boston/Cambridge corridor rivaling Silicon Valley for innovation. The state climbed 18 spots on the 2025 CNBC rankings (the most improved state) to #20.
Tip: Register with the Massachusetts Department of Revenue for your tax obligations and obtain a sales tax vendor registration

Line-Item Cost Breakdown

Category Low Mid High Notes
LLC filing $390 $1,300 $2,600 LLC filing fee in Massachusetts: $500. LLC fee varies by state ($35-$500). EIN is free.
Cosmetology/barber license $650 $3,250 $6,500 Cosmetology license $50-$300 per stylist. Salon establishment license $100-$500. Health inspection $50-$300. Each stylist must have individual state license.
Styling chairs $6,500 $26,000 $78,000 Hydraulic chairs $500-$3,000 each. Wash stations $500-$2,000 each. Mirrors $200-$800 each. Professional clipper sets $150-$400. Scissors $200-$800 per set. For a 4-chair salon: chairs alone $2,000-$12,000.
Plumbing for wash stations $6,500 $39,000 $130,000 Specialized plumbing for wash stations $5,000-$15,000. Electrical for dryers and equipment $2,000-$5,000. Flooring $3,000-$8,000. Full buildout $30-$100/sqft.
Hair care products $1,950 $5,850 $15,600 Professional product lines for backbar $800-$2,000. Retail inventory $500-$5,000. Coloring supplies $500-$2,000. Consumables (capes, towels, sanitizer) $500-$1,500.
Reception desk $2,600 $7,800 $19,500 Reception desk $500-$2,000. Waiting chairs $200-$800. Display shelving $300-$1,500.
General liability $1,950 $4,550 $9,100 Annual cost. General liability $400-$1,200/yr. Professional liability (for chemical treatments, allergic reactions) $300-$800/yr. Workers comp varies by state.
Exterior signage $1,950 $5,200 $13,000 Exterior sign $1,000-$5,000. Website with booking $500-$2,000. Grand opening marketing $500-$2,000.
POS system $650 $1,950 $5,200 Salon booking software (Square Appointments, Vagaro) $0-$150/mo. POS hardware $300-$1,200.
3 months operating expenses $10,400 $32,500 $78,000 Monthly operating: rent $1,500-$5,000, staff costs $2,000-$10,000, utilities $300-$800, supplies $300-$800.
Estimated Total $32,500 $130,000 $390,000 Adjusted for Massachusetts's cost index (1.3x national avg)

LLC Registration in Massachusetts

LLC Filing Fee
$500

To form an LLC in Massachusetts, you file Articles of Organization (or Certificate of Formation) with the Secretary of State. The base filing fee is $500.

Note: Highest base filing fee in the nation at $500.

File online at: Massachusetts Secretary of State

An EIN (Employer Identification Number) is free from the IRS and required for any LLC with employees, multiple members, or that wants a business bank account.

Permits & Licenses in Massachusetts

Estimated Permit Costs
$2,500

Hair Salon / Barbershop businesses in Massachusetts typically need multiple permits and licenses. Estimated total permit costs are around $2,500.

Cosmetology license $50-$300 per stylist. Salon establishment license $100-$500. Health inspection $50-$300. Each stylist must have individual state license.

Always check with your local city and county offices for specific requirements. Requirements vary significantly between jurisdictions within Massachusetts.

Insurance Costs in Massachusetts

Annual Insurance Cost
$4,000

A hair salon / barbershop in Massachusetts should budget approximately $4,000/year for insurance coverage.

Annual cost. General liability $400-$1,200/yr. Professional liability (for chemical treatments, allergic reactions) $300-$800/yr. Workers comp varies by state.

Coverage TypeDetails
General LiabilityCovers third-party bodily injury and property damage claims
Workers CompensationMassachusetts rate: $1.15 per $100 payroll (national avg: $1.03)
Property/EquipmentCovers business property, equipment, and inventory
Total Annual Estimate$4,000

Equipment & Setup

Hydraulic chairs $500-$3,000 each. Wash stations $500-$2,000 each. Mirrors $200-$800 each. Professional clipper sets $150-$400. Scissors $200-$800 per set. For a 4-chair salon: chairs alone $2,000-$12,000.

ItemBudgetMid-RangePremium
Styling chairs $6,500 $26,000 $78,000
Plumbing for wash stations $6,500 $39,000 $130,000
Hair care products $1,950 $5,850 $15,600
Reception desk $2,600 $7,800 $19,500

Working Capital

Plan for at least 3 months of operating expenses as working capital. For a mid-range hair salon / barbershop in Massachusetts, that means approximately $32,500 ($10,833/month).

Monthly operating: rent $1,500-$5,000, staff costs $2,000-$10,000, utilities $300-$800, supplies $300-$800.

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Other Business Types in Massachusetts

Hair Salon / Barbershop Costs in Neighboring States

StateLLC FeePermitsInsurance/yrCost Index
Connecticut $120 $2,000 $3,800 1.12x Details →
New Hampshire $100 $1,500 $3,000 0.95x Details →
New York $200 $3,000 $4,500 1.38x Details →
Rhode Island $150 $1,500 $3,000 0.95x Details →
Vermont $155 $1,500 $3,000 0.95x Details →

Frequently Asked Questions

How much does it cost to start a hair salon / barbershop in Massachusetts?
Based on our research, starting a hair salon / barbershop in Massachusetts costs approximately $32,500 for a budget setup, $130,000 for a mid-range operation, and up to $390,000 for a premium setup. Massachusetts has a cost index of 1.3x the national average.
How much is an LLC in Massachusetts?
The LLC filing fee in Massachusetts is $500, paid to the Secretary of State. Highest base filing fee in the nation at $500. You can file online at https://www.sec.state.ma.us/cor/.
Do I need a business license for a hair salon / barbershop in Massachusetts?
Yes. Most hair salon / barbershop businesses in Massachusetts need at minimum a general business license and possibly industry-specific permits. Permit costs in Massachusetts average around $2,500 for a hair salon / barbershop.
How much is workers compensation insurance in Massachusetts?
Massachusetts's average workers compensation rate is $1.15 per $100 of payroll. Actual rates vary by industry classification code, claims history, and insurer. The national average is $1.03 per $100 of payroll.
What insurance do I need for a hair salon / barbershop in Massachusetts?
At minimum, you need general liability insurance. Most hair salon / barbershop businesses also carry property insurance, workers compensation (required in most states once you hire employees), and industry-specific coverage. Annual insurance costs for a hair salon / barbershop in Massachusetts average $4,000.