How to Start a Salon in Texas: Complete 2026 Guide

Starting a salon in Texas is a real opportunity. The state has 30 million people, a booming beauty market, and cities like Dallas, Fort Worth, and the surrounding suburbs where demand for quality salons is strong. But opening a salon isn't just about buying chairs and scissors. It requires planning, capital, proper licensing, and a solid understanding of the regulatory landscape.

This guide walks you through every step, from getting licensed to booking your first clients.

Step 1: Get Your Texas Cosmetology License

Before anything else, you need the right credentials. In Texas, beauty services are regulated by the Texas Department of Licensing and Regulation (TDLR).

For stylists/technicians:

• Complete a TDLR-approved cosmetology program (minimum 1,500 hours for cosmetology, 600 hours for specialty licenses)
• Pass the written and practical exams
• Apply for your license through TDLR (approximately $50-75 application fee)
• License renewal required every 2 years

For salon owners:

• Obtain a Shop License from TDLR (separate from your individual cosmetology license)
• Pass a salon inspection covering sanitation, ventilation, and equipment standards
• Maintain liability insurance (required by most lease agreements)
• Comply with OSHA and local health department regulations

If you're moving from another state, Texas may accept reciprocity. Check with TDLR for your state's specific requirements.

Step 2: Write a Business Plan

A business plan isn't just a formality. It forces you to think through the hard questions before you invest money. Your plan should cover:

• Executive summary: What kind of salon? What's your niche?
• Market analysis: Who are your competitors? What's the demand in your target city? (Cities like Mansfield, North Richland Hills, and Burleson have growing demand with moderate competition.)
• Services and pricing: What will you offer and at what price points? (See our Texas salon pricing guide for benchmarks.)
• Financial projections: Startup costs, monthly expenses, break-even timeline
• Marketing strategy: How will you attract your first 50 clients?

Step 3: Choose Your Business Structure

Most Texas salons operate as one of these:

• Sole Proprietorship: Simplest structure. You and the business are one entity. Easy to set up but no personal liability protection.
• LLC (Limited Liability Company): Most popular for salons. Protects your personal assets if the business is sued. Filing fee is $300 in Texas.
• S-Corp: More complex tax structure that can save money on self-employment taxes once you're profitable. Usually worth considering after your first year or two.

An LLC is the most common choice for new salon owners. File your Certificate of Formation with the Texas Secretary of State and get your EIN (Employer Identification Number) from the IRS. Both are straightforward online processes.

Step 4: Secure Funding

How much does it cost to open a salon in Texas? Here's a realistic breakdown:

• Lease deposit and first/last month rent: $3,000-$10,000 (varies dramatically by location)
• Build-out and renovation: $10,000-$50,000 (plumbing, electrical, stations, flooring)
• Equipment (chairs, dryers, shampoo bowls): $5,000-$20,000
• Initial product inventory: $2,000-$5,000
• Licenses and permits: $500-$1,500
• Insurance (first year): $1,000-$3,000
• Marketing and signage: $1,000-$5,000
• Working capital (3-6 months of expenses): $10,000-$30,000

Total realistic range: $35,000-$125,000, depending on location, size, and build-out scope.

Funding sources include personal savings, SBA loans (7(a) is most common for salons), business lines of credit, and partnerships. Some Texas cities offer small business grants or economic development incentives.

Step 5: Find Your Location

Location can make or break a salon. Here's what to evaluate:

• Foot traffic and visibility: Strip malls and shopping centers with other retail generate walk-in potential.
• Parking: Texas clients drive. If parking is difficult, you'll lose clients before they even walk in.
• Demographics: Match your salon's price tier to the neighborhood. A luxury salon concept works in Southlake or Colleyville. A value-focused salon thrives in growing suburbs.
• Competition density: Some saturation is fine (it means demand exists), but avoid areas with 10 salons within a mile unless you have a strong differentiator.
• Lease terms: Negotiate tenant improvement allowances, renewal options, and termination clauses. A 3-5 year lease with renewal options is standard.

Pro tip: drive through your target area at different times and days. Count foot traffic. Check Google Maps to see how many salons are already nearby. Talk to neighboring business owners about customer flow.

Step 6: Get Permits and Insurance

You'll need these before opening day:

• TDLR Shop License (mandatory for operating a salon in Texas)
• City business license/permit (varies by city)
• Certificate of Occupancy (from your city's building department)
• Sales tax permit from the Texas Comptroller (required if you sell retail products)
• General liability insurance ($1M-$2M coverage is standard)
• Professional liability insurance (protects against malpractice claims)
• Workers compensation (required in Texas if you have employees)
• Property insurance (covers equipment, inventory, and build-out)

Step 7: Build Out Your Space

Your salon's interior should reflect your brand and make clients comfortable. Focus on:

• Styling stations: Invest in quality chairs and mirrors. This is where money is made.
• Shampoo area: Comfortable bowls and proper plumbing. This is a first impression moment.
• Waiting area: Clean, comfortable, and welcoming. Offer water or coffee.
• Lighting: Natural light is ideal. If not available, invest in high-quality, warm lighting that makes hair color look accurate.
• Ventilation: Required by TDLR and critical for chemical services (color, perms, acrylics).
• Storage: Product storage, employee lockers, and cleaning supply areas.

Step 8: Hire Your Team (Or Go Solo)

Decide on your staffing model:

• Commission-based: You hire stylists as employees and split revenue. More control, more management overhead. (See our booth rental vs commission guide for details.)
• Booth rental: Independent stylists rent space from you. Less management, steady rental income, but less control over quality and scheduling.
• Solo: You do everything yourself. Maximum control and profit per service, but limited growth and no coverage if you're sick.

For your first year, starting solo or with one other stylist keeps overhead low while you build clientele and cash flow.

Step 9: Set Up Operations

Before opening day, you need systems:

• Booking software: Square Appointments, Vagaro, or Boulevard. online booking is expected by clients in 2026.
• Point-of-sale system: Accept cards, Apple Pay, and cash. Square, Clover, or Lightspeed are popular salon choices.
• Accounting: QuickBooks or Wave for tracking income, expenses, and taxes. Separate business and personal accounts from day one.
• Social media: Instagram and TikTok are non-negotiable for salon marketing. Set up profiles before you open.
• Online presence: Create your profile on The Local Gem to start appearing in local searches immediately. Also set up Google Business Profile.

Step 10: Get Your First Clients

The hardest part of opening a salon isn't the build-out. It's filling chairs in the first few months. Here's what works:

• Friends and family launch: Offer discounted services to your network in exchange for reviews and social media posts.
• Local directory listings: Get on every platform where local clients search. The Local Gem, Google Business Profile, Yelp, and Facebook are the essentials.
• Grand opening event: Partner with neighboring businesses for a launch event. Offer mini-services, giveaways, and refreshments.
• Social media content: Post before-and-after photos, process reels, and behind-the-scenes content daily for the first month.
• Referral program: "$20 off for both you and anyone you refer." Word of mouth is the most powerful growth engine for salons.

For more strategies, read our guide on how to get more clients as a hairstylist.

Frequently Asked Questions

How much does it cost to start a salon in Texas?

Realistic startup costs range from $35,000 to $125,000, depending on location, size, build-out scope, and whether you lease or buy equipment. A smaller suite salon in a suburban market can open for $35,000-$50,000, while a full-service salon in a premium area may require $80,000-$125,000+.

Do I need a cosmetology license to own a salon in Texas?

You need a TDLR Shop License to operate a salon. You do not need a personal cosmetology license to own a salon if you're not performing services yourself. However, most salon owners are also licensed cosmetologists.

How long does it take to open a salon from scratch?

Plan for 3-6 months from concept to opening day. This includes securing a lease (1-2 months), build-out (1-3 months), licensing and permits (2-4 weeks), and hiring (ongoing). Delays in construction or permitting are common, so build in buffer time.

What's the most common reason new salons fail?

Undercapitalization and poor location are the top two reasons. Many new salon owners underestimate build-out costs and overestimate first-year revenue. Having 3-6 months of working capital and choosing a location with strong foot traffic significantly improve your odds of success.

The Takeaways

• Get licensed first: TDLR cosmetology license and shop license are non-negotiable.
• Write a real business plan: Market analysis, financial projections, and marketing strategy before spending money.
• Budget realistically: $35,000-$125,000 depending on scope. Always include 3-6 months working capital.
• Choose location carefully: Parking, foot traffic, demographics, and lease terms matter more than aesthetics.
• Fill chairs from day one: Launch with a marketing blitz: directory listings, social media, referral program, and grand opening event.

Ready to Launch Your Salon?

Opening a salon in Texas is one of the most rewarding things you can do in the beauty industry. The market is strong, the demand is real, and the DFW area in particular is growing fast.

When you're ready to start attracting clients, create your free listing on The Local Gem. Your salon will appear when people in Mansfield, Keller, North Richland Hills, Fort Worth, and surrounding cities search for beauty services. No credit card required. No monthly fees to start.

Browse beauty services by category to see what other salons in your market offer, and position your salon to stand out from day one.