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How to start a salon in South Dakota

Hair salon, barbershop, nail salon, spa, or beauty services.

Recommended structure

LLC

Typical startup cost

$10,000 – $150,000

State

South Dakota

Step-by-step

1
Form an LLC and get an EIN
2
Verify all stylists hold valid state cosmetology licenses
3
Apply for salon establishment permit + health inspection
4
Get general liability + professional liability insurance
5
Open a business bank account
6
Set up booking + POS (Vagaro, Booksy, Square Appointments)

Licenses & permits you'll likely need

State cosmetology / barbering license
Salon establishment permit
Health department inspection
Sign permit

Exact requirements vary by city and county. Confirm locally before you operate.

Insurance

• General liability
• Professional liability (malpractice)
• Workers' comp
• Property insurance

Tax notes

Tip income is taxable and must be reported. Use a POS (Square, Vagaro, Booksy) that tracks tips automatically.

Business banking

Booth-rental vs employee model has huge tax implications — decide early and document it in writing.

Official South Dakota filing links

File LLC / Corp with South Dakota

South Dakota Secretary of State

Search business name

Confirm your name is available

Apply for an EIN (IRS)

Free federal tax ID

See full South Dakota resource page

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