Starting an appearance enhancement business in New York City requires more than talent and dedication. You will need a clear skill set and a handful of permits to run your business legally. But don’t let legal terms and requirements demotivate you. If your passion for operating a beauty salon is true, this guide has been written just for you. We will walk you through the licensing steps, and by the end of this blog, you will be pretty confident about all licensing processes. So, let’s dive into the permits you need for your business.
Why Does a Beauty Salon License Matter?
In NYC, every business, whether it’s done on a small scale or a large one, requires a license. Operating without a permit can lead to significant problems. Here are a few reasons that will help you understand the importance of having a New York business license.
Legality and Compliance:
Having adequate permits is a legal requirement. All businesses that operate in NYC or NYS should comply with the law and have the necessary permits. Failing to do so can lead to fines, shutdowns and other legal issues.
Credibility and Trust:
Having a beautician license in NY will not only protect you from lawsuits but also build brand trust and credibility. It acts as a foundational tool to demonstrate that the business has gone through the necessary legal requirements, training, and ample experience to provide quality work. In short, having proper licenses is a sign of professionalism.
Insurance and Liability:
As soon as you open the business, there will be a need for business insurance to protect your investment. Although it’s not mandatory by law, it’s still crucial for peace of mind. Insurance providers most probably ask for your business license before they process anything further.
Professional Standards:
Proper business licensing ensures that you meet the professional standards set by the government to provide beautician and esthetic services. In short, it sets the professional standard for your business.
Types of Cosmetology Licenses You Might Need
Not all businesses are made equal; neither do they need the same type of insurance. Also, there are multiple types of business licenses for appearance enhancement. Below are some general licenses that become mandatory for your business. Below, we’ll explain various cosmetology permits and their necessity for businesses.
Cosmetology Licenses:
For individuals who provide different services, including hair, head, face, neck, or scalp (hair cutting, coloring, styling), skincare, and nail care services, a cosmetology license is a must-have.
Esthetics:
For businesses and individuals focusing on skin care services to improve the appearance of the face, neck, arms, legs, and shoulders, an esthetics license is crucial. If your business uses techniques like facials, makeup, depilatories, tonics, lotions, waxes and some specialized machines for appearance enhancement, you must have a New York State beauty salon license.
Nail Specialty:
This license is for services to cut, shape, or enhance the appearance of the nails of the hands or feet, including the application and removal of sculptured or artificial nails. In short, if you are a professional nail artist who performs nail care and nail art for compensation, this license is a requirement in NYC.
Natural Hair Styling:
Beauty salons and hair stylists who offer services like shampooing, arranging, dressing, twisting, wrapping, weaving, extending, locking, and braiding the hair require a natural hair styling license.
Waxing:
This license is specifically for the removal of unwanted hair from the body using waxes. Mainly, appearance enhancement permits cover it, but if your main/only service is waxing, you will need a specific license for it.
The Application Process for an Beauty Salon Business License
The application process for a beauty salon license in New York State, overseen by the NYS Department of State (NYSDOS), generally involves the following steps and requirements:
1. Understand the Requirements:
- Age: The candidate must be at least eighteen years of age.
- Compliance with Laws: The business must comply with all federal, state, and local health and safety laws, rules, regulations, and codes, including the Americans with Disabilities Act.
- Location: The business must operate at the specific location listed on the license.
- Surety Bond or Liability Insurance: This is a crucial requirement. The business must maintain evidence of a surety bond in the minimum amount of $50,000 OR liability insurance policies (accidental and professional liability), each in the minimum amount of $25,000 per occurrence and $75,000 in the aggregate OR a general liability policy in such amounts. This evidence must be submitted with the application.
- Individual Practitioner Licenses: It’s important to realize that, even though the business license is distinct, each person providing appearance-enhancing services within the company—cosmetologists, estheticians, nail technicians, natural hair stylists, and waxer must possess a current New York State individual license in their field.
- Nail Specialty Wage Bond (if applicable): If the business employs individuals who provide nail specialty services, additional surety bond requirements based on the number of full-time nail specialty employees may apply:
- $25,000 if employing 2 to 5 full-time nail specialty individuals.
- $40,000 if employing 6 to 10 full-time nail specialty individuals.
- $75,000 if employing 11 to 25 full-time nail specialty individuals.
- Training and Exam (for owners/operators): Recent legislation (Assembly Bill A7296) indicates that owners and operators may also be required to complete a two-hour in-person professional training and pass an examination focusing on health and safety rules and regulations to protect the public and employees. This training would be conducted by approved organizations.
2. Gather Necessary Documentation:
- Completed Application Form: The “Appearance Enhancement Business or Area Renter Application” (DOS 0035-f-a) is the primary form.
- Surety Bond or Insurance Certificate: Proof of the required $50,000 surety bond or equivalent liability insurance.
- Nail Specialty Wage Bond (if applicable).
- Payment of Fees:
- The initial application fee is $60.
- These fees can typically be paid by check or money order payable to the Department of State or by MasterCard or Visa using a credit card authorization form.
- Business Information: Applicant name, address, email, phone number, and business name and address.
- Background Data: Information regarding the applicant’s background may be requested.
3. Submit the Application:
The NYSDOS encourages applicants to apply online using the NYS License Center at www.dos.ny.gov/licensing. This generally offers a quicker turnaround time. You will likely need to create a NY.gov ID account if you don’t already have one.
4. Await Processing and Issuance:
- Once the NYSDOS receives your complete application and all required documentation, they will review it.
- If all requirements are met, your cosmetology business license will be issued. The license is generally valid for four years from the date of issue.
Important Notes:
- Changing Ownership: If the business changes ownership for any reason, a new Appearance Enhancement Business or Area Renter application must be submitted.
- Posting Requirements: Licenses (both business and individual practitioner) must be prominently displayed in the business where they can be easily seen by the public and employees.
- Compliance is Ongoing: Obtaining the license is just the first step. Businesses must continuously adhere to all health, safety, and operational regulations outlined in Article 27 of the General Business Law and related rules.
- Official Resources: Always refer to the official New York State Department of State (NYSDOS) website (dos.ny.gov) for the most up-to-date information, forms, and specific instructions, as regulations can change.
Maintaining Your Beauty Salon Business License:
Cosmetology business licenses usually cost $60 for renewal. Further, you must keep a clean record of all business deals and hygiene standards to smoothly go through renewal. It is recommended that your staff be educated and have their individual licenses renewed as per federal government policy.
Final Wrap-Up:
Getting a cosmetology salon license can be a huge headache for business startups. You already have a lot on your plate, and licensing requirements add a burden to your work. So, it’s better to work with a licensing provider who manages everything on your behalf for a small fee. Let Tax King be your licensing provider so you can focus on what matters the most.
