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

Mississippi has a cost index of 0.72x the national average for hair salon / barbershop businesses. Here is a complete line-by-line cost breakdown based on local data.

Budget Setup
$18,000
Mid-Range
$72,000
Premium Setup
$216,000
Mississippi offers some of the lowest business operating costs in the nation, with cheap real estate, low labor costs, and competitive tax rates. The state ranked #45 on CNBC's 2025 Top States for Business, primarily due to workforce education challenges.
Register your business: Mississippi Secretary of State ((601) 359-1633)
Tip: Register with the Mississippi Department of Revenue for your sales tax permit before making taxable sales

Line-Item Cost Breakdown

Category Low Mid High Notes
LLC filing $216 $720 $1,440 LLC filing fee in Mississippi: $50. LLC fee varies by state ($35-$500). EIN is free.
Cosmetology/barber license $360 $1,800 $3,600 Cosmetology license $50-$300 per stylist. Salon establishment license $100-$500. Health inspection $50-$300. Each stylist must have individual state license.
Styling chairs $3,600 $14,400 $43,200 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 $3,600 $21,600 $72,000 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 $1,080 $3,240 $8,640 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 $1,440 $4,320 $10,800 Reception desk $500-$2,000. Waiting chairs $200-$800. Display shelving $300-$1,500.
General liability $1,080 $2,520 $5,040 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 $1,080 $2,880 $7,200 Exterior sign $1,000-$5,000. Website with booking $500-$2,000. Grand opening marketing $500-$2,000.
POS system $360 $1,080 $2,880 Salon booking software (Square Appointments, Vagaro) $0-$150/mo. POS hardware $300-$1,200.
3 months operating expenses $5,760 $18,000 $43,200 Monthly operating: rent $1,500-$5,000, staff costs $2,000-$10,000, utilities $300-$800, supplies $300-$800.
Estimated Total $18,000 $72,000 $216,000 Adjusted for Mississippi's cost index (0.72x national avg)

LLC Registration in Mississippi

LLC Filing Fee
$50

To form an LLC in Mississippi, you file Articles of Organization (or Certificate of Formation) with the Secretary of State. The base filing fee is $50.

File online at: Mississippi 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 Mississippi

Estimated Permit Costs
$1,000

Hair Salon / Barbershop businesses in Mississippi typically need multiple permits and licenses. Estimated total permit costs are around $1,000.

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 Mississippi.

Insurance Costs in Mississippi

Annual Insurance Cost
$2,500

A hair salon / barbershop in Mississippi should budget approximately $2,500/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 CompensationMississippi rate: $0.95 per $100 payroll (national avg: $1.03)
Property/EquipmentCovers business property, equipment, and inventory
Total Annual Estimate$2,500

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 $3,600 $14,400 $43,200
Plumbing for wash stations $3,600 $21,600 $72,000
Hair care products $1,080 $3,240 $8,640
Reception desk $1,440 $4,320 $10,800

Working Capital

Plan for at least 3 months of operating expenses as working capital. For a mid-range hair salon / barbershop in Mississippi, that means approximately $18,000 ($6,000/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 Mississippi

Hair Salon / Barbershop Costs in Neighboring States

StateLLC FeePermitsInsurance/yrCost Index
Alabama $200 $1,200 $2,800 0.78x Details →
Arkansas $45 $1,000 $2,600 0.75x Details →
Louisiana $100 $1,500 $3,000 0.85x Details →
Tennessee $300 $1,400 $2,800 0.88x Details →

Frequently Asked Questions

How much does it cost to start a hair salon / barbershop in Mississippi?
Based on our research, starting a hair salon / barbershop in Mississippi costs approximately $18,000 for a budget setup, $72,000 for a mid-range operation, and up to $216,000 for a premium setup. Mississippi has a cost index of 0.72x the national average.
How much is an LLC in Mississippi?
The LLC filing fee in Mississippi is $50, paid to the Secretary of State. You can file online at https://www.sos.ms.gov/business-services.
Do I need a business license for a hair salon / barbershop in Mississippi?
Yes. Most hair salon / barbershop businesses in Mississippi need at minimum a general business license and possibly industry-specific permits. Permit costs in Mississippi average around $1,000 for a hair salon / barbershop.
How much is workers compensation insurance in Mississippi?
Mississippi's average workers compensation rate is $0.95 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 Mississippi?
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 Mississippi average $2,500.