How to Register a Beauty Salon in Washington

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Step 1: Choose Your Business Structure.

Your salon is a business, first and foremost. As such, you’ll need to secure the proper licenses for your business to operate in Washington. The first step to completing this requirement is to determine your business structure:

• Sole Proprietorship: This is the simplest business structure where you, as an individual, own and operate the salon. While it’s easiest to set up, with minimal paperwork, sole proprietors are personally liable for all business debts and obligations.
• Partnership: A partnership is an option if you plan to operate the salon with one or more partners. There are general partnerships, where all partners share responsibility, and limited partnerships, where some partners have limited liability. Partnerships are simple to form, but there’s the potential for conflicts between partners – particularly if liability issues arise.
• Limited Liability Company (LLC): An LLC combines the flexibility of a partnership with the liability protection of a corporation. Owners are not personally liable for business debts, but there are more paperwork and administrative requirements than for sole proprietorships and partnerships.
• Corporation: A corporation is a separate legal entity from its owners (shareholders), providing strong protection against personal liability. Corporations also have the potential for raising capital through stock issuance, but they’re more complex and costly to establish and maintain, with strict regulatory requirements. Unless you’re starting a salon enterprise, a corporation is probably more hassle than worth it.

Step 2: Register Your Business Name

Registering your salon’s name with Washington State is one of the first steps toward compliance with state and local regulations. It also enhances your salon’s professionalism and credibility. Here’s how to do it:

‍Choose a Name: In addition to selecting a name representative of your business, you’ll need to ensure your salon’s name is unique and complies with Washington state naming rules. It should not be misleading or too similar to existing businesses.

1. Search for Name Availability: Use Washington State’s Department of Revune’s online business name search tool to check if your desired name is available and not already in use. If registering a corporation’s name, use the Washington Secretary of State’s business name lookup tool.
2. Register the Name: If your salon’s name is different from your legal business name, file for an “assumed business name” (also known as a DBA or “Doing Business As”) with the Washington State Department of Revenue. You can complete this process online or by mail.
3. Check for Trademarks: Optionally, verify that your chosen name isn’t already trademarked by searching the U.S. Patent and Trademark Office’s database.
4. Submit the Registration: File your Business License Application with the Department of Revenue and pay the $5 fee. Once processed, you’ll receive confirmation of your registered business name.
5. Update Records: Update your business documents, marketing materials, and any other relevant records to reflect your new registered name.

Step 3: Apply for a Business License

With your business structure and name settled, it’s time to apply for a business license. You can complete the business license application online through the Washington State Department of Revenue’s Business Licensing Service.

Fill out a business license application form to ask for details about your business structure, name, and location. Then, provide the necessary documents, such as proof of your business name registration. Lastly, pay the required application fee, which can vary depending on your business structure and location.

Step 4: Obtain Salon-Specific Permits

In Washington State, salons must obtain several permits and licenses in addition to their business license to operate legally. Here’s a rundown of the main requirements:

‍Cosmetology License: This is required for any salon offering cosmetology services. Each practitioner (like hairstylists and estheticians) must have a license. To get this license, you must meet strict education and experience standards as determined by the Washington State Department of Licensing (DOL).

• Salon License: Salons must be licensed by the Washington State (DOL). This license ensures that the salon meets health and safety standards. To obtain your salon license, you must prove that your business is covered by a public liability insurance policy of at least $100,000 for combined bodily injury and property damage liability.
• City/County Permits: Depending on your location, you might need additional permits from your city or county government. This could include zoning permits or health permits, depending on local regulations. Check with your local government to see if there are additional requirements for registering your salon.
• Health and Safety Permits: Your salon must comply with local health department regulations, which might involve inspections and adherence to sanitation standards.

This is just an overview. For the most current and specific requirements, check with the Washington State Department of Licensing and your local city or county government, as regulations can vary depending on geography and are subject to change.

Step 5: Set Up Your Business Finances

Opening a business bank account is crucial for the success of your salon. Not only does it add a level of professionalism to your business, enhancing credibility with clients and vendors, but it also keeps your personal and business finances separate, simplifying tax preparation and bookkeeping.

This separation also helps with accurate tracking of income and expenses, making it easier to manage cash flow and prepare financial statements. It enables you to utilize services like business credit cards, loans, and merchant accounts.

‍North One offers tailored banking solutions for managing your salon’s finances. Their business bank accounts provide essential features such as expense tracking, budgeting tools, and financial insights, which help streamline your financial operations. The platform integrates seamlessly with popular accounting software, making it easier to sync transactions and maintain accurate records. 

It even has built-in budgeting software, helping you organize your funds according to your business objectives. By using North One’s services, you can manage your salon’s finances more efficiently, allowing you to focus on growing your business and serving your clients.

Step 6: Final Steps Before Opening

You’ve secured your licenses and permits, but you’re not ready to open quite yet.

Before seeing your first clients, determine if you need to hire and train staff. If so, ensure they are well-versed in salon procedures, customer service, and safety protocols. Set up your salon space with a functional and appealing design, finalize equipment and product inventory, and implement effective booking and payment systems.

Additionally, you’ll want to develop a strong marketing strategy to promote your salon’s brand and attract clients. Consider conducting a soft opening to test operations and gather feedback before your official launch. By carefully managing these final steps, you’ll be well-prepared for a successful salon opening and smooth ongoing operations.

Need An Account To Bank On?

North One is ideal for salon owners in Washington because its digital-only platform simplifies financial management. It makes it easy to track expenses, manage transactions, and keep operations running smoothly. Integrating with popular accounting software, North One provides essential tools for expense tracking, budgeting, and real-time insights. As the beauty industry evolves, having a dependable and efficient financial partner like North One helps salon professionals stay competitive, optimize profitability, and concentrate on offering outstanding services to their clients.

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