Four Types of Authorizations
All practitioners who provide services in Oregon must do so in a licensed facility, which is defined as "...an establishment operated on a regular or irregular basis for the purpose of providing services in one or more fields of practice."
The only exception is a practitioner who obtains a freelance authorization, which is a written authorization allowing a practitioner to practice outside of or away from a licensed facility.
The third type of cosmetology business license is an independent contractor registration. An independent contractor is defined as a practitioner "...who is not under the control and direction of a facility license holder."
Temporary facility permits allow holders to operate a facility on a temporary basis for a period not to exceed 30 consecutive calendar days.
All practitioners must be certified in one or more fields of practice to provide services.
Facility License Application
To obtain a facility license, the applicant must:
- Be at least 18 years old
- Register with the Secretary of State, Corporations Division, an "Assumed Business Name" (ABN) prior to applying for a facility license, and submits a current copy of the ABN filing with the facility application. More information
Note: An ABN is not required if your business name includes the "real and true" name of each owner. What is a "real and true" name? More information
- Complete, sign and date the facility license application
- Pay facility license application fee and facility license fee.
Facility in a Home or Rural Area
If your facility is going to be located in your home / residence, you must:
- Have an identifying house number and a sign
- with the facility name that matches the one on file with the agency
- that is easily visible from the street
- that indicates the location of the facility.
- Be equipped with the structures, accommodations, and equipment that the HLO requires for all facilities.
- Maintain separation between the residential living area and facility by solid walls extending from floor to ceiling, with connecting doors kept closed while the facility is in operation.
If your facility will be in a rural or isolated area, you must provide a map or directions to the facility with your application.
Moving Your Facility? New License Required
If you're relocating your salon to a new location, you are required to submit a new facility application and pay related fees when any of the following conditions exist:
- A facility is purchased from the current or previous owner, partnership or corporation
- There is a change in the legal ownership, partnership or holding of a facility regulated under Board of Cosmetology laws and rules, such as a partner or co-owner being added or removed from the existing facility license. This includes a change in the ownership status due to death or divorce of facility owner or a spouse listed as a co-owner on the agency's records.
- An existing facility moves or relocates to a new physical address.
Facility license holders who close a business must inform the HLO in writing within 30 calendar days of the closure of the facility and before reopening the facility while the license is still current.
Previously called a certificate of identification (CID), a freelance authorization may be issued to practitioners already certified in one or more fields of practice.
Independent Contractor (IC Registration)
To be issued an independent contractor registration, an applicant must:
- Hold a current and valid practitioner's certificate in one or more fields of practice.
- Be at least 18 years of age
- Complete, sign and date the Independent Contractor application.
- Pay IC application fee and the IC registration fee.
Independent contractors may work independently of a facility license holder and registration is transferable between work locations if the agency is notified.
Independent contractors must comply with both facility and practitioner standards and are subject to inspections just as facilities are.
Assumed Business Name
An assumed Business Name (ABN) is not required if your business name includes the real and true name of each owner.
What is a "real and true name"? It means your first name, middle initial or name, and last name. If your name is Jane J. Jones and you conduct business under the name Jane J. Jones Enterprises, you wouldn't be required to register an assumed business name.
However, if you do not use an ABN, you must register the ABN with the Secretary of State, Corporations Division, prior to applying for an independent contractor (IC) registration and submit a current copy of the ABN filing with the IC application.
Contractor or Employee?
The Health Licensing Office (HLO) often receives questions about the difference between an employee and an independent contractor, particularly as it relates to whether the facility owner is required to pay unemployment taxes.
Under Oregon Revised Statutes (ORS) 690.005(10) for the Board of Cosmetology, an independent contractor is defined as a "... practitioner who qualifies as an independent contractor under ORS 670.600 and who is not under the control and direction of a facility license holder."
ORS 670.600, Occupations and Professions Generally, provides a more detailed definition of an independent contractor.
Generally, Oregon law requires employers to pay unemployment taxes on employee wages by filing Oregon Quarterly Tax Reports.
Individuals who meet the statutory definition of an independent contractor are not employees and their compensation for services is not taxable wages.
For more information, contact the Oregon Employment Department at 503-947-1488 or firstname.lastname@example.org or visit www.oregon.gov/employ/tax.
Temporary Facility Permit
If you would like to provide services on a temporary basis not to exceed 30 consecutive calendar days, you may apply for a temporary facility permit. Temporary facilities must comply with all facility requirements and submit a map/floor plan of the temporary facility on a separate piece of paper.