How to Start a Barbershop in Indiana: Barber License and Shop Permit
How to Start a Barbershop in Indiana: Barber License and Shop Permit
Opening a barbershop in Indiana involves two separate licensing tracks. Each barber who cuts hair needs an individual barber license from the State Board of Cosmetology and Barber Examiners, which is administered through the Indiana Professional Licensing Agency (PLA). The shop itself is licensed through a separate application. If you are searching for an indiana barber license, barber license indiana information, or an indiana barbershop license, this guide covers both tracks plus the business formation steps that should come before you sign a lease.
Disclaimer: This article is informational content, not legal or tax advice. Fees, deadlines, and rules change. Confirm every figure with the agency named before you pay or file, and consult a qualified attorney or CPA before making decisions about your entity structure, lease, or taxes.
What You Need Before You Start
Gather these items before you begin. A missing document usually means a rejected application or a restarted clock.
- Proof of age: You must be 18, or 17 with a high school diploma or equivalent.
- Training documentation: Records showing 1,500 hours of barber training at an Indiana-approved beauty culture school, or your Department of Labor registered apprenticeship number and completion certificate.
- Valid government ID and a payment method for the application fees.
- A business name that meets Indiana's naming rules, plus a registered agent with a street address in Indiana.
- A federal employer identification number (EIN) from the IRS, which you will need for a business bank account and for payroll.
- A shop location and target opening date. The shop license is tied to a physical facility, so you cannot finish it on paper alone.
Indiana Barber and Barbershop Fees at a Glance
The table below lists the fees that apply to a typical barbershop launch. Treat the PLA figures as provisional. A 2025 rulemaking on board fees (LSA Document #24-583) was proposed, and its outcome has not been confirmed, so confirm current fees with the PLA before you pay.
| Item | Cost | Notes |
|---|---|---|
| Individual barber license application | $40 | Non-refundable |
| Individual barber license renewal | $40 | Renewal period is not confirmed: confirm with the PLA |
| Reinstatement after expiration | $80 | May require remediation |
| Barbershop license (Beauty Culture Salon application) | $40 | Temporary permit valid three months |
| LLC Articles of Organization | $95 | Filed online through INBiz |
| LLC Business Entity Report | $32 | Every other year; paper filing costs $50 |
| Assumed business name (DBA), online | $20 per name | Paper filing is $30 per name for LLCs |
| Name reservation | $10 | Holds the name for 120 days |
| Registered Retail Merchant Certificate | $25 | Needed only if you sell taxable goods, such as hair products |
| Indiana state sales tax | 7% | Applies to taxable retail sales |
Step-by-Step: Getting Licensed and Opening Your Barbershop
Work through these steps in order. The sequence matters most for the shop permit, which should not be filed until your facility is nearly ready.
Step 1: Confirm you meet the age and education requirements
Indiana requires barbers to be 18 years old. A 17-year-old can qualify if they hold a high school diploma or equivalent. If you are younger than 18 and do not have a diploma, you cannot apply yet, so plan your training timeline around that gap. Pull your diploma or GED documentation now so it is ready when you file.
Step 2: Complete 1,500 hours of training or a registered apprenticeship
You have two paths to satisfy the training requirement:
- Barber school: Complete 1,500 hours of barber training at an Indiana-approved beauty culture school. Ask the school to confirm in writing that its program is approved and that your hours will be reported correctly.
- Registered apprenticeship: Complete a Department of Labor registered apprenticeship. You will need your apprentice number and a completion certificate. The hour requirement for apprenticeships is not confirmed, so confirm the required hours with the PLA before you enroll.
Keep original certificates and hour records. Photocopies and unofficial transcripts are a common reason for delays, so ask for official copies at the time you finish.
Step 3: Apply for your individual barber license
Submit your individual barber license application through the PLA with the $40 application fee. The fee is non-refundable, so double-check your training records and personal information before you pay. Processing times are not published on the PLA materials this guide relies on, so plan for an open-ended wait and do not commit to a lease start date that depends on approval.
Step 4: Pass the written exam
The written exam is administered through PSI, the testing vendor the PLA uses. Once your application is accepted, you will be directed to schedule the exam. Study the material your barber school gave you, and take practice questions if your program provides them. Plan to pass before you sign a commercial lease, because you cannot legally cut hair for paying customers until you hold the license.
Step 5: Form your business entity with the Secretary of State
Most barbershop owners form a limited liability company (LLC). File the Articles of Organization, Domestic Limited Liability Company (State Form 49459) through INBiz at inbiz.in.gov. The filing fee is $95, and the form and filing are completed in a single online session. Indiana does not publish a processing-time standard for formations, and INBiz offers no expedited option for a domestic LLC, so file early.
Your business name must include the words Limited Liability Company or an abbreviation of them, such as LLC. It must also be distinguishable from names already in the Secretary of State's records. Entity identifiers like LLC or Inc., along with punctuation, capitalization, and the word the, do not make a name distinguishable. Search the records at the Business Services Division search page before you choose a name.
If you want to hold the name while you finish licensing, a name reservation costs $10 and lasts 120 days. You can file it through INBiz's first step.
Step 6: Name a registered agent
Your LLC must continuously maintain a registered agent and a registered office in Indiana. The agent receives legal papers, tax notices, and other official mail for the business. The agent can be an Indiana resident whose business office matches the registered office, or a business authorized to operate in Indiana. The registered office must be a street address, since a P.O. Box is not enough unless it comes with a rural route reference. You cannot serve as your own registered agent, and each entity can have only one agent. Pick someone who will reliably forward mail, because a missed notice can become a missed deadline.
Step 7: File a DBA if you will operate under a different name
If your shop will trade under a name other than your LLC's legal name, file a Certificate of Assumed Business Name (State Form 30353). For LLCs already registered with the state, the Secretary of State handles this filing, and the online fee is $20 per name. Paper filing costs $30 per name for LLCs. The form is available from the Indiana forms library.
Step 8: Secure the location, then check local rules
Indiana does not have a single comprehensive business license. Your city or county may still require permits, zoning approval, signage permits, or inspections before you can open. Contact the local planning or zoning office for the address you are considering, and ask whether the use is permitted in that zone. Do this before you sign a lease, because a zoning problem after signing is expensive to unwind.
Step 9: Apply for the barbershop license (Beauty Culture Salon application)
A barbershop is licensed under the Beauty Culture Salon application, at $40. Once approved, you receive a temporary permit valid for three months, so the timing of your filing has to match your build-out. Do not file until the facility is ready to open. If you file early and your renovation slips, the permit can run out before you are ready to serve clients.
The salon must operate under the personal supervision of a licensed beauty culture professional. The rule is phrased in terms of that professional, so confirm with the PLA exactly who can serve as the supervising professional if you are not one yourself, and what supervision must look like day to day. Get the answer in writing.
Step 10: Register for sales tax if you sell taxable goods
Most barbershops sell products, such as pomade, shampoo, or branded merchandise. If you sell taxable goods, you need a Registered Retail Merchant Certificate from the Indiana Department of Revenue, which costs $25. Indiana's state sales tax rate is 7%, and you collect it on taxable retail sales. Register through the Department of Revenue's business registration page, and confirm with the Department which of your sales are taxable.
Step 11: Calendar your ongoing obligations
Your work does not end at opening. Track these recurring items:
- LLC Business Entity Report: $32 online, due every other year by the end of the month in which the LLC was formed. The first report is due two years after formation. Paper costs $50.
- Individual barber license renewal: $40. The renewal period is not confirmed, so confirm it with the PLA and set a reminder well before the date.
- Income tax: Indiana has no franchise tax on LLCs. Profits pass through to the owners, who pay the individual adjusted gross income tax (2.95% for 2026) plus county local income tax. Confirm your tax treatment with a CPA, especially if you plan to elect corporate treatment, which carries a 4.9% corporate adjusted gross income tax.
Expected Results and Timeline
Working through these steps in order may help you avoid the most common delays. Owners who file the entity, confirm local zoning, and gather training records before they apply for licenses often report fewer surprises at the final stage. Applications and exam scheduling can take time that is not published, so a realistic plan allows for slower approvals than you expect, particularly for the individual license and the shop permit.
If you keep the three-month temporary permit window in mind, you can time your shop filing so that your inspections, supervision arrangements, and opening date line up without wasting the permit.
Tips and Common Mistakes to Avoid
- Filing the shop application too early. The temporary permit lasts three months. Wait until the facility is ready.
- Letting your individual license lapse. Reinstatement costs $80 and may require remediation. If your license has been expired for five years or more, you must pass the written exam again within one year of applying.
- Assuming Indiana has one business license. It does not. Local permits and zoning approval are separate steps.
- Naming the LLC without the required words. The name must include Limited Liability Company or an abbreviation, and it must be distinguishable in state records.
- Using a P.O. Box as the registered office. Use a street address.
- Skipping the Business Entity Report. It is required every other year, and the first one comes due two years after formation.
- Paying for rush filing. No expedited option is offered for a domestic LLC formation.
- Assuming an LLC avoids personal income tax. Profits pass through to you and are taxed on your individual return.
- Relying on outdated fee sheets. Confirm all PLA fees before paying, given the unconfirmed 2025 board fee rulemaking.
Where to Get Help
For questions about barber and salon licensing, contact the Indiana Professional Licensing Agency directly and get answers in writing. For entity formation and Business Entity Reports, use the Secretary of State's Business Services Division pages. For tax registration and sales tax questions, use the Indiana Department of Revenue. If you want advice on your business plan, the Indiana Small Business Development Center network can help you think through the steps.
Before you sign a lease, hire an employee, or take on investors, consult a qualified Indiana attorney and CPA. They can review your entity choice, lease terms, supervision arrangements, and tax position against your specific situation. This guide is informational, not legal or tax advice, and the rules described here may change.