How to Start a Barbershop Business in California

October 29, 2026

Opening a barbershop in California involves two separate licenses. You need a personal barber license from the Board of Barbering and Cosmetology (BBC), and the shop itself needs its own establishment license from the same board. After those, you handle the business basics: forming an entity with the Secretary of State, registering for taxes, filing a fictitious business name if you need one, and getting whatever city business tax registration applies to your address.

Barber training is 1,000 hours under Business and Professions Code (BPC) 7362.5, which is the same as cosmetology training. The hours are rarely what slows people down. The paperwork and the sequence of filings are where most first-time owners lose time, so this guide follows the order you should actually work in.

This article is informational only. It is not legal, tax, or financial advice. Confirm every fee and deadline with the agency named before you file, and consult a qualified attorney or CPA before choosing a business structure or setting up barber booth rental arrangements.

What You Need Before You Start

• Proof of age (at least 17) and proof of completing the 10th grade or equivalent
• Documentation of your training route, such as a school completion record, apprenticeship record, out-of-state practice verification, or cosmetology and barber crossover records
• A $125 barber exam application payment
• A shortlist of shop names you can check in bizfile Online
• A decision on entity type (LLC or corporation) and a registered agent
• A property or lease plan that includes a separate work room and public restroom with handwashing facilities
• A list of the products you plan to sell, so you know whether you need a seller's permit
• The city or county where the shop will operate, so you can check its local business tax requirements

Part 1: Get Your Personal Barber License

Step 1: Confirm you meet the basic eligibility rules

You must be at least 17 years old and have completed the 10th grade or an equivalent level of education. The Board of Barbering and Cosmetology (barbercosmo.ca.gov) handles all barber and shop licensing, so use its site as your primary source for forms and current requirements.

Step 2: Choose a qualifying route

Under BPC 7321.5, you qualify by completing one of these paths:

• A barbering course at a board-approved school, which is 1,000 hours
• A board-approved barbering apprenticeship
• Practicing barbering outside California, where each three months of practice counts as 100 hours
• Holding a California cosmetologist license and completing a barber crossover course at an approved school
• Completing a cosmetology course and a barber crossover course
• Having comparable military training, as recognized under the statute

Most first-time applicants use the school route. If you already hold a cosmetology license, the crossover course is usually the shorter path. Confirm the hour requirements for your specific route with the BBC before you enroll, especially for apprenticeships and out-of-state experience.

Step 3: Complete training and keep your records

Save every transcript, certificate, and verification letter. The board needs them to process your exam application, and you will need them again if your file is questioned. Schools and apprenticeship sponsors should give you official documents, not copies of your own notes.

Step 4: Apply for the written exam

The barber exam is written only. The $125 fee is the exam application fee, not the license fee. Confirm with the BBC whether any other fee is due when your license is issued, because the board's fee schedule is the authority on that question.

Step 5: Plan for renewal

Your barber license renews every two years for $50. A late renewal adds a $25 delinquency fee. Put the renewal date on your calendar the day you receive the license, so you do not miss it.

Know what your license covers

Under BPC 7316, barber practice includes:

• Shaving and trimming beards
• Cutting hair
• Facial and scalp treatments
• Shampooing
• Chemical waving, relaxing, and dyeing hair
• Hairstyling of all hair textures

Part 2: Get the Barbershop Establishment License

Step 6: Apply for the establishment license

Every shop needs its own establishment license from the BBC, separate from your personal license. The fee schedule is flat. The application fee is $50 and is nonrefundable. Renewal is $40, and the delinquency fee is $20. The fee does not change based on how many stations or chairs you operate.

Step 7: Set up the shop to meet the statutory rules

The establishment license comes with specific requirements that you should build into your floor plan and staffing before you apply:

• A licensee in charge. The shop must be in the charge of a licensed barber or cosmetologist under BPC 7348.
• Licensed workers only. No unlicensed person may work in the shop under BPC 7349.
• Separate work room. The work room cannot be used as living space. It needs an entrance that is separate from any private quarters, under BPC 7350.
• Public restroom. The shop needs a public toilet room under BPC 7351.
• Handwashing. The shop needs handwashing facilities under BPC 7352.
• Labor law acknowledgment. The application includes an acknowledgment that the establishment is responsible for complying with state labor laws, under BPC 7347.

Ask your landlord early whether the space meets the separate entrance and restroom rules. Finding out after you have signed a lease is the most expensive mistake in this step.

Part 3: How Barbers Work in Your Shop

Before you open, decide how the barbers in your shop will be paid and classified. You have two main models, and they carry very different obligations.

Step 8: Decide between employees and booth renters

If you hire barbers as employees, they follow the normal employment rules. That means payroll, wage and hour compliance, and EDD registration. The state minimum wage is $16.90 in 2026 and rises to $17.40 on January 1, 2027. Verify both figures with the state Labor Commissioner or the Department of Industrial Relations before you set pay, because local minimums may be higher.

If barbers rent booths or chairs from you, the classification depends on the facts. Labor Code 2778(b)(2)(L) describes when a licensed barber is outside the ABC test. A booth renter meets that exception when all five of these conditions are true:

• The barber sets their own rates.
• The barber processes their own payments and is paid directly by clients.
• The barber sets their own hours and has sole discretion over the number and choice of clients.
• The barber has their own book of business and schedules their own appointments.
• The barber maintains their own business license for the services they offer. When working at the owner's location, the barber issues a Form 1099 to the salon or business owner from whom they rent the space.

Write a booth rental agreement that reflects these facts. A lease that tells barbers what to charge, which hours to work, or which clients to see does not match the checklist, and your paperwork should match how the shop actually runs. If you cannot meet all five conditions, plan to treat those barbers as employees and talk to an employment attorney about your options.

Part 4: Handle the Local and State Business Basics

These steps cover the entity, tax, and filing requirements that apply to any California business. Each has its own agency, so keep track of which office you are dealing with.

Step 9: Check and reserve your name

Search the name in bizfile Online at bizfileonline.sos.ca.gov. You can reserve a name for $10, which holds it for 60 days. The reservation cannot be renewed for consecutive periods. An LLC name must include "limited liability company," "L.L.C.," or "LLC." It cannot include words such as "bank," "trust," "incorporated," "inc.," "corporation," or "corp."

Step 10: Form your entity with the Secretary of State

Most barbershop owners choose an LLC or a corporation. The formation documents and fees are:

Item	Form or fee	Agency
LLC formation	Articles of Organization (Form LLC-1), $70	Secretary of State
Corporation formation	Articles of Incorporation, $100	Secretary of State
LLC Statement of Information	Form LLC-12, $20 within 90 days, then every two years	Secretary of State
Corporation Statement of Information	Form SI-550, $25 within 90 days, then every year	Secretary of State
Name reservation	$10 for 60 days	Secretary of State
Fictitious business name	Statutory fee $10 plus $2 per additional name or owner, plus county charges and newspaper publication	County clerk-recorder

File online through bizfile Online. Online filings are normally processed within about 5 business days or less. Paper filings take 10 or more business days. Expedited options are available: 24-hour for $350, same-day for $750 if received by 9:30 a.m., and 4-hour for $500 by drop-off with precleared service. Missing a Statement of Information deadline can bring a $250 penalty, so calendar it as soon as you file.

Your LLC or corporation must keep an agent for service of process in California. That agent can be an individual who lives in California or a corporation that holds a Corporations Code 1505 certificate. The LLC must also keep an office in California, which does not have to be a place where business activity happens.

Two structure points need an attorney's review. California does not allow a domestic series LLC. An LLC also cannot render a licensed professional service, and professional corporations are used for that purpose. Ask whether that rule touches your plans before you choose a structure.

Step 11: Understand California's franchise tax and LLC fee

Every LLC, limited partnership, and LLP organized or registered in California in 2024 through 2026 owes the $800 minimum annual franchise tax from its first year. An LLC whose first taxable year begins in 2027, 2028, or 2029 pays $400 in year one under RTC 17941(g)(2), so confirm the first-year amount with the Franchise Tax Board (FTB). The LLC fee is $900, $2,500, $6,000, or $11,790, depending on whether California-source total income reaches $250,000, $500,000, $1,000,000, or $5,000,000.

A newly incorporated or qualified corporation or S corporation owes no $800 minimum in its first taxable year. Corporate income tax is 8.84% (10.84% for banks). S corporations pay 1.5% of net income with an $800 minimum after the first year. Confirm which of these applies to you with the FTB or a CPA.

Step 12: Register a fictitious business name if needed

If your shop will operate under a name other than your legal name or the entity's exact name, you must file a Fictitious Business Name Statement. File it with the county clerk-recorder in the county of your principal place of business. File it within 40 days of starting to do business, then publish it in a newspaper once a week for four weeks. The statement expires after five years. Counties set their own fees, so check the county's current schedule. Details are on the Secretary of State's fictitious business names page.

Step 13: Register for sales tax if you sell taxable goods

If your shop sells taxable products such as pomade, razors, or styling tools, you need a seller's permit from the California Department of Tax and Fee Administration (CDTFA) at cdtfa.ca.gov. The seller's permit is free. The statewide base rate is 7.25%, and with district taxes, city rates run from 7.25% to 11.75%. When you buy products for resale, you give your supplier a resale certificate. California does not require a specific form for it. The seller's permit is not a business license.

Step 14: Register with the EDD if you hire employees

If you have employees, register with the Employment Development Department (EDD) before you pay your first wages. Booth renters do not count as employees under the standard model described in Part 3, but confirm your classification before you assume that.

Step 15: Check your city and county requirements

California has no general statewide business license. The Secretary of State issues none, and the seller's permit is not a business license. Most California cities charge a local business tax or require a registration certificate. Of the 483 cities, 445 report revenue from one. There is no common formula, so the answer depends on your city. Counties license only regulated activities. Call or visit the city clerk or finance office where the shop will be located and ask for their business tax or registration requirements.

Your personal barber license and shop establishment license are the state-level permits specific to your trade. Keep both posted and current, and make sure every barber working in the shop holds an active license before they touch a client.

For free or low-cost help with planning, the California Small Business Development Center network offers advising across the state. It is useful for reviewing your business plan and cash flow before you sign a lease.

Common Mistakes to Avoid

• Assuming you need more training hours than cosmetologists. Barber school is 1,000 hours, the same as cosmetology training. Confirm your route with the BBC rather than relying on secondhand claims.
• Treating the $125 as your license fee. It is the exam application fee. Ask the BBC what else is due when your license is issued.
• Assuming the establishment fee depends on chair count. The $50 application fee, $40 renewal, and $20 delinquency fee are flat.
• Signing a booth rental agreement that does not match how the shop operates. Your contract should reflect the five booth rental conditions in Part 3.
• Ignoring the work room rules. A room that doubles as living space or lacks a separate entrance will not meet BPC 7350.
• Missing the 90-day Statement of Information deadline. Late filings can bring a $250 penalty for LLCs.
• Operating under a trade name without filing one. File the fictitious business name statement within 40 days of starting, then complete the publication step.
• Skipping the local business tax. Your city may require a registration certificate even when the state does not.

What Results to Expect

A licensed, properly organized shop may be better positioned to operate without interruptions from compliance problems, and clear booth rental agreements may help you avoid disputes about who is responsible for what. Results depend on your location, pricing, marketing, and how you manage the shop, and no filing or license guarantees client volume or income. Plan your first year around realistic cash needs, and review your numbers with a CPA before you commit.

Next Steps Checklist

1. Confirm your training route with the BBC and enroll or gather documents.
2. Pass the written barber exam and receive your personal license.
3. Check your shop location against the establishment license rules.
4. Choose and reserve your name, then form your LLC or corporation.
5. File the Statement of Information and calendar all renewal dates.
6. Decide whether barbers will be employees or booth renters, and document that choice.
7. Register for a seller's permit, register with the EDD if you hire, and file a fictitious business name if needed.
8. Contact your city about its business tax or registration certificate.

Reminder: this guide is informational, not legal or tax advice. Confirm current fees and deadlines on each agency's site, and consult a qualified attorney or CPA for your specific situation.