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

Utah has a cost index of 0.9x the national average for hair salon / barbershop businesses. Here is a complete line-by-line cost breakdown based on local data.

Budget Setup
$22,500
Mid-Range
$90,000
Premium Setup
$270,000
Utah has one of the strongest and most diversified economies in the nation, with the 'Silicon Slopes' tech corridor rivaling major coastal tech hubs. The state ranked #16 on CNBC's 2025 Top States for Business.
Register your business: Utah Division of Corporations ((801) 530-4849)
Tip: Register with the Utah State Tax Commission for your sales tax license, withholding tax, and other business tax accounts

Line-Item Cost Breakdown

Category Low Mid High Notes
LLC filing $270 $900 $1,800 LLC filing fee in Utah: $59. LLC fee varies by state ($35-$500). EIN is free.
Cosmetology/barber license $450 $2,250 $4,500 Cosmetology license $50-$300 per stylist. Salon establishment license $100-$500. Health inspection $50-$300. Each stylist must have individual state license.
Styling chairs $4,500 $18,000 $54,000 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 $4,500 $27,000 $90,000 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 $1,350 $4,050 $10,800 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 $1,800 $5,400 $13,500 Reception desk $500-$2,000. Waiting chairs $200-$800. Display shelving $300-$1,500.
General liability $1,350 $3,150 $6,300 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 $1,350 $3,600 $9,000 Exterior sign $1,000-$5,000. Website with booking $500-$2,000. Grand opening marketing $500-$2,000.
POS system $450 $1,350 $3,600 Salon booking software (Square Appointments, Vagaro) $0-$150/mo. POS hardware $300-$1,200.
3 months operating expenses $7,200 $22,500 $54,000 Monthly operating: rent $1,500-$5,000, staff costs $2,000-$10,000, utilities $300-$800, supplies $300-$800.
Estimated Total $22,500 $90,000 $270,000 Adjusted for Utah's cost index (0.9x national avg)

LLC Registration in Utah

LLC Filing Fee
$59

To form an LLC in Utah, you file Articles of Organization (or Certificate of Formation) with the Secretary of State. The base filing fee is $59.

File online at: Utah 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 Utah

Estimated Permit Costs
$1,400

Hair Salon / Barbershop businesses in Utah typically need multiple permits and licenses. Estimated total permit costs are around $1,400.

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 Utah.

Insurance Costs in Utah

Annual Insurance Cost
$2,700

A hair salon / barbershop in Utah should budget approximately $2,700/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 CompensationUtah rate: $0.75 per $100 payroll (national avg: $1.03)
Property/EquipmentCovers business property, equipment, and inventory
Total Annual Estimate$2,700

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 $4,500 $18,000 $54,000
Plumbing for wash stations $4,500 $27,000 $90,000
Hair care products $1,350 $4,050 $10,800
Reception desk $1,800 $5,400 $13,500

Working Capital

Plan for at least 3 months of operating expenses as working capital. For a mid-range hair salon / barbershop in Utah, that means approximately $22,500 ($7,500/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 Utah

Hair Salon / Barbershop Costs in Neighboring States

StateLLC FeePermitsInsurance/yrCost Index
Arizona $50 $1,500 $3,000 0.92x Details →
Colorado $50 $1,500 $3,200 1.05x Details →
Idaho $100 $1,200 $2,700 0.85x Details →
New Mexico $50 $1,200 $2,700 0.82x Details →
Nevada $425 $1,800 $3,000 0.98x Details →

Frequently Asked Questions

How much does it cost to start a hair salon / barbershop in Utah?
Based on our research, starting a hair salon / barbershop in Utah costs approximately $22,500 for a budget setup, $90,000 for a mid-range operation, and up to $270,000 for a premium setup. Utah has a cost index of 0.9x the national average.
How much is an LLC in Utah?
The LLC filing fee in Utah is $59, paid to the Secretary of State. You can file online at https://corporations.utah.gov/.
Do I need a business license for a hair salon / barbershop in Utah?
Yes. Most hair salon / barbershop businesses in Utah need at minimum a general business license and possibly industry-specific permits. Permit costs in Utah average around $1,400 for a hair salon / barbershop.
How much is workers compensation insurance in Utah?
Utah's average workers compensation rate is $0.75 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 Utah?
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 Utah average $2,700.