1.3 Salon Licenses, Salon Types & the Designated Licensed Salon Manager

Key Takeaways

  • Minn. Stat. 155A.29 bars cosmetology services for compensation unless a licensee provides them in a licensed salon or as the chapter otherwise allows.

  • An initial salon license costs $350 ($250 license plus $100 application), and a three-year salon renewal costs $225 ($175 plus $50) under Minn. Stat. 155A.25.

  • A salon license is required for each physical location, cannot be transferred on a move, sale or change of business structure, and the new license must be issued within 60 days or operations stop on day 61 (Minn. R. 2105.0322).

  • Each salon registers exactly one designated licensed salon manager (DLSM); the owner reports a DLSM's departure within 10 business days and has 60 days to register a replacement.

  • A salon in a private residence needs a permanent floor-to-ceiling partition from the living area, and laundry tubs may not serve as shampoo bowls (Minn. R. 2105.0393).

Last updated: October 2026

Why this section matters

The PSI outline item "Types of salons and maintaining salon licenses" cites Minn. Stat. 155A.29 and Minn. R. 2105.0310 (subp. 1), 2105.0322, 2105.0330, 2105.0393, 2105.0397 and 2105.0520. Expect questions on fees, deadlines (10 business days, 60 days, six months), the one-DLSM rule and residential-salon partitions.

When a salon license is required

Under Minn. Stat. 155A.29, subd. 1, a person must not offer cosmetology services for compensation unless the services are provided by a licensee in a licensed salon, or as otherwise allowed (for example, homebound service permits in Section 1.5). Minn. R. 2105.0322, subp. 2 adds that a salon must never let an unlicensed person perform a regulated service, even without pay.

Two facilities are exempt from salon licensing: a facility where people provide only threading (155A.29, subd. 6), and a facility where everyone provides only exempt hairstyling and makeup services under 155A.27, subd. 9(c) (155A.29, subd. 7).

Conditions for issuing a salon license (155A.29, subd. 2; Minn. R. 2105.0310)

  • Compliance with local and state law, particularly infection control, health and safety
  • Appointment of a manager (the DLSM)
  • Workers' compensation coverage when required by Minn. Stat. 176.182
  • Professional liability insurance of at least $25,000 per claim and $50,000 total per policy year for each practitioner
  • One license for each physical location; a licensed salon may not share space with another licensed salon except restrooms, and may not sit inside another salon's perimeter
  • An application with owner information and notarized signatures, a Certificate of Assumed Name when using a business name, a Certificate of Organization where required, insurance certificates, an attestation of compliance with building codes, the State Fire Code and OSHA, a floor plan drawn to scale, and the DLSM's name, license number and notarized signature
Salon transaction (Minn. Stat. 155A.25)Fee
Initial salon license$350 ($250 license + $100 application)
Three-year salon renewal$225 ($175 + $50 application)
Salon late renewal$50
Expedited initial salon license$300

Salon license cycle and renewal

A salon license runs three years and expires on the last day of the month of initial licensure (155A.25, subd. 4; Minn. R. 2105.0520). Under Minn. R. 2105.0330, the owner and the DLSM are responsible for renewal, and not receiving a reminder is no excuse. The renewal identifies the owner and the current DLSM and verifies that liability and workers' compensation policies are current, including liability coverage for practitioners leasing space.

  • If the renewed license has not been issued by the expiration date, the salon is delinquent and must stop operating until a license is issued.
  • If a complete renewal is not received within six months of expiration, the salon cannot renew and must apply for a new license.

Changes that require a new license (Minn. R. 2105.0322)

ChangeRule
Remodel or added contiguous spaceNo report required, but the changes must meet the rules and building codes
New locationLicense does not transfer; apply for a new license; 60 days to become licensed; if not licensed by day 61, stop operating
Mobile salon moves to a new vehicle or structureMay not operate in the new vehicle until it is licensed
Salon name change (same owner)Within 60 days submit the name-change form, legal documents, insurance certificates in the new name and the fee; license reissued in the same cycle
Sale (change of owner)License does not transfer; new owner has 60 days if the license had not expired; if it had expired, the new owner may not operate until licensed
Change of business structureNew license required within 60 days
DLSM leavesOwner notifies the board in writing within 10 business days and has 60 days to register a new DLSM

The salon must also keep liability insurance in force for the salon and its employees, make sure every practitioner leasing space carries liability coverage or is covered by the salon's policy, and keep proof of current insurance on the premises.

The designated licensed salon manager (DLSM)

A manager license requires an active Minnesota operator license plus a passing result, no more than one year old, on the salon manager test (Minn. R. 2105.0145, subp. 2). The PSI Salon Manager Exam has 25 scored items, takes one hour, costs $48 and requires 75%. An applicant may apply for the operator and manager licenses at the same time.

DLSM rule (Minn. R. 2105.0305 and 2105.0390)What it means
AppointmentThe owner appoints and registers the DLSM on board forms; the DLSM acknowledges the duties in writing
Only oneA salon registers only one DLSM; other unlicensed business managers are allowed
Shared responsibilityOwner and DLSM are responsible at all times, even when absent, for every practitioner in the salon, including non-employees and renters
LicensesEach practitioner must hold a current Minnesota license for the services provided
One salonA DLSM may not cover more than one salon unless the salons are never open at the same time and their hours are attested in writing
PresenceThe DLSM need not be present at all times but stays responsible
ResignationEffective when the board receives the resignation or DLSM change form; until then the DLSM remains liable
School conflictA DLSM may not also be a designated school manager unless serving a one-person salon never open during school hours
RecordsKeep work-time records of employees (Minn. Stat. 177.30); salons that lease space must give lessees a contemporaneous time-tracking method and keep those records four years

Salon types

Salons in private residences (Minn. R. 2105.0393; 155A.29, subd. 3a)

  • The salon must meet every rule in chapter 2105.
  • The salon space may never be used for residential purposes.
  • A permanent, solid partition from floor to ceiling must separate the salon from the living area, and any connecting door must stay closed at all times.
  • All services must be performed in the salon space.
  • Laundry tubs may not be used as shampoo bowls.
  • If the salon has no restroom, licensees and customers may use the residential bathroom, but medications and hazardous substances there must be kept in locked cupboards.
  • If the owner or DLSM is home when an inspector arrives, the inspector must be admitted, even if the salon is closed.
  • The salon name must be displayed at the driveway entrance unless a local ordinance or covenant prohibits signage (Minn. R. 2105.0360, subp. 1).

Suite-style salons (Minn. R. 2105.0397)

A suite-style salon leases rooms or suites to licensees. Either one salon license covers every suite (held by the leasing business), or each suite carries its own salon license. When one license covers the building, the license holder and DLSM answer for every suite; the salon license is posted at the reception area and each customer entrance as a purchased duplicate (not a photocopy); practitioner licenses are posted inside each suite; inspection results are posted at the customer entrance; SDS must be in each suite or a central location; and each suite-style salon needs a designated handwashing sink and disinfecting area.

Mobile salons (Minn. Stat. 155A.29, subd. 2a; Minn. R. 2105.0395)

A mobile salon keeps a permanent business address, tells the board its locations and schedule, and is licensed for one specific vehicle or structure. All services happen inside; it needs a working phone, its licensed name on the exterior, self-contained potable water tanks with gauges, a wastewater tank at least 15% larger than the potable supply, an onboard restroom, and carbon monoxide, smoke and combustible-gas alarms. It may not operate when potable water is at 10% or less or a waste tank is at 90% or more.

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Salon license events and deadlines
Test Your Knowledge

What is the total fee for an initial Minnesota salon license?

A

$195

B

$225

C

$300

D

$350

Test Your Knowledge

A salon's designated licensed salon manager resigns. What must the owner do?

A

Notify the board in writing within 10 business days and register a new DLSM within 60 days

B

Close the salon until the board approves a new DLSM, and refund any appointments booked during the closure

C

Notify the board at the next salon license renewal

D

Name two acting managers until the next renewal

Test Your Knowledge

Which requirement applies to a salon located in a private residence?

A

A curtain may separate the salon if it is washed weekly

B

Clients must have a separate exterior entrance that bypasses the home, and the salon must pass an inspection before it opens

C

A permanent, solid floor-to-ceiling partition separates the salon from living areas, with any connecting door kept closed

D

The salon must have its own restroom that does not share plumbing with the home

Test Your Knowledge

A licensed salon is sold to a new owner while its license is still current. What does Minn. R. 2105.0322 require?

A

The license transfers automatically with the sale

B

The new owner has 60 days to obtain a new salon license and must stop operating if it is not issued by day 61

C

The new owner may continue operating under the seller's license until it expires, then apply in the new owner's name

D

The seller must renew the license in the buyer's name

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