Thinking of Opening a Beauty Shop? Here’s Exactly What You Need to Know

1. The Short Answer (for the busy bees 🐝)

To open a beauty shop in the U.S., you’ll need to register your business, grab the right permits, choose a good location, budget wisely (start with 20–40% of what you’ve got), and work with trusted suppliers who provide certified products.

Got it? Great. Now let’s break it down.

2. First Things First: Register Your Business

You’ll need to make it official. Most beauty shop owners go with an LLC (Limited Liability Company) to keep their personal stuff safe (like your car or savings account). You can also go solo as a sole proprietorship, but you’ll take on more risk if anything goes wrong.

You’ll also need:

• A business license (check with your city or state)

• A sales tax permit

• An EIN from the IRS (if you’re hiring or need a business bank account)

Pro tip: Websites like LegalZoom or SBA.gov make this part way easier.

3. Licenses, Permits & All That Jazz

This part depends on whether you’re just selling products or also doing beauty services (like makeup application, facials, etc.).

If you’re just selling products, you’ll likely need:

• A general business license

• A sales tax ID

• A zoning permit (check if retail is allowed in your location)

If you’re planning to offer services, you or your staff may also need a cosmetology license. Some cities ask for a Certificate of Occupancy if you’re renting a retail space. It sounds scary, but it’s just proving your shop meets safety codes.

4. Let’s Talk Money: How Much Should You Invest?

This part’s important. You don’t want to go broke before your grand opening, right?

A safe bet is to use 20–40% of the money you’ve saved or set aside for this business. Here’s roughly where the money goes:

• Inventory: $5,000–$15,000 depending on what you sell

• Rent: $2,000–$5,000/month (more in big cities)

• Shop setup: shelves, mirrors, signs, etc. — $3,000–$10,000

• Licensing & insurance: around $1,000–$3,000

• Marketing: $1,500+ (you’ll need people to find you!)

Bonus: Have a small cushion for surprise costs—because they will come.

5. Where Should You Open Your Shop?

Location can seriously make or break you. Look for spots with:

• Foot traffic: malls, near salons, fitness centers

• The right people: think about who you want as customers—young professionals, teens, etc.

• Easy parking and good visibility

Need help picking a place? Check out City-Data to learn more about neighborhoods and local demographics.

6. Where to Get Your Products

You’ve got two main options here:

Option A: Go Private Label

This means working with a manufacturer who already has products ready—you just add your branding. Super beginner-friendly.
👉 Aurora Global Brands is a good option here. Low minimum orders, lots of makeup categories (lipsticks, false lashes, nails), and everything’s ready to go.

Option B: Buy Wholesale

You can stock big-name or indie products through distributors like Beauty Joint or Cosmetix Club. You’ll pay a lower price per unit and sell them at a markup.

7. What About Certifications? Do I Need FDA Approval?

Here’s the deal: if you’re just reselling products, you don’t need to register with the FDA. But the products you sell do need to follow U.S. rules.

That means:

• Proper labeling

• Safe ingredients (no mercury, please)

• No misleading claims

You can read straight from the source at the FDA’s Cosmetic Rules page. And if you’re working with a good supplier, they should already have this handled.

8. Do I Need to Pay a Deposit for Inventory?

Most likely, yes. Whether you’re going private label or wholesale, suppliers usually ask for a 30–50% deposit up front, especially for customized items.

Some may offer dropshipping, but holding your own stock gives you more control (and faster delivery to your customers).