How To Start a Makeup Line? (Business Formation Guide)

Before you launch a makeup line, you must understand how to formulate ingredient blends, design the products, outsource manufacturing, and the laws governing this business sector.

To assist you through the complex initial phase, we sought expert business advice from our licensed team of startup consultants, who have over a decade of experience in the entrepreneurship sector.

We have compiled this comprehensive step-by-step guideline on how to start a makeup line business.

Quick Summary

8 Steps To Start a Makeup Line

Here's Venture Smarter's detailed guide to the steps to take when launching your cosmetic company.

1. Which Path is Right for You?

Before diving into the steps, determine which approach best matches your goals and resources:

Approach	Initial Investment	Time to Market	Control	Best For
Private Label	\$3,000-\$10,000	1-3 months	Low-Medium	Testing market, limited budget
Contract Manufacturing	\$15,000-\$50,000	3-8 months	Medium-High	Unique formulations, established concept
Full Custom Brand	\$50,000+	8-18 months	Complete	Experienced entrepreneurs, unique market position

Case Study: Glossier's Approach Emily Weiss launched Glossier after building a following through her beauty blog "Into the Gloss." She started with just four products and secured \$2M in seed funding, then expanded gradually based on customer feedback. This strategic focus allowed Glossier to reach a \$1.2 billion valuation within 5 years.

Promising Niches with Growth Potential (2025):

1. Clean Beauty: Products free from parabens, sulfates, and artificial fragrances
2. Inclusive Shade Ranges: Foundations and concealers for underrepresented skin tones
3. Sustainable Packaging: Refillable or biodegradable packaging solutions
4. Multifunctional Products: Items that combine skincare and makeup benefits
5. Men's Makeup: Growing at 7% annually with limited competition

2. Create a Business Plan

Successful beauty brands have business plans that describe what they want to sell, who they want to sell it to, and how they plan to sell it.

A makeup line business plan is also useful when applying for loans, partnerships, or grants. You can also share this plan with potential investors planning to invest in your makeup company.

Your beauty business strategy ought to contain the following:

• Overview of the business.
• Analysis of market research, including competitive analysis.
• Your company's overall management and organizational structure.
• An explanation of your cosmetic brand and products.
• A description of your marketing and sales plan.
• A thorough financial forecast.
• Any business-related documents, like tax records and contracts.

3. Register Your Business

Structure	Liability Protection	Tax Treatment	Complexity	Best For
Sole Proprietorship	None	Pass-through	Low	Side hustles, testing phase
LLC	Good	Pass-through	Medium	Most makeup startups
S-Corporation	Good	Pass-through with tax advantages	Medium-High	Profitable businesses with owner salary
C-Corporation	Excellent	Double taxation	High	Seeking venture capital

Once you've chosen your business structure, you must submit the Certificate of Organization or Articles of Formation to the Secretary of State and pay the relevant filing fees [1].

Once the state approves your registration, your company becomes a separate legal entity. This guarantees that you'll be personally covered if the company is sued, falls into bad debt, or any product contributes to an accident.

To be able to pay taxes, your company organization will also require a Tax Identification Number or an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) [2].

Related: What Is an LLC?

4. Obtain Business Licenses

As an operating business, you must obtain the correct permits and licenses before you open the shop.

Different states have different license requirements for beauty brands, but generally, you'll need to apply for the following licenses:

• Cosmetology license if you plan on applying makeup to your potential customers.
• Esthetician license if you'll offer skin care treatment services.
• Manufacturers license you if you'll be manufacturing your products.
• Municipal license to operate in certain jurisdictions.

You should also view the regulations for manufacture, labeling, and sale.

5. Find a Cosmetics Manufacturer

Your manufacturing partner will directly impact product quality, margins, and time to market.

Manufacturing Options Comparison:

Manufacturer Type	Min. Order Quantity	Cost Per Unit	Customization	Lead Time	Best For
White Label	50-100 units	\$\$\$\$	Minimal (packaging only)	2-4 weeks	Quick launch, testing
Private Label	200-500 units	\$\$\$	Medium (formula tweaks)	4-8 weeks	Unique products, medium budget
Contract Manufacturing	1,000+ units	\$\$	High (custom formulas)	8-16 weeks	Established brands, scaling
In-House Production	N/A	\$	Complete	Variable	Artisanal brands, full control

6. Build Your Brand Identity

The cosmetic industry is solely an image-driven entity; therefore, there's power in how you brand yourself.

Brand Strategy Elements:

• Brand purpose and values
• Brand personality attributes
• Target audience personas
• Brand positioning statement
• Core messaging pillars

Visual Identity Components:

• Logo design (\$300-5,000)
• Color palette
• Typography system
• Photography style
• Packaging design (\$1,500-10,000)

Brand Story Framework:

1. Founder's motivation
2. Problem identification
3. Solution development
4. Brand values demonstration
5. Customer transformation

Packaging Considerations:

• Sustainability vs. luxury
• Shelf impact and recognition
• Unboxing experience
• Functional requirements
• Cost constraints

Case Study: Fenty Beauty When Rihanna launched Fenty Beauty, the brand identity centered on inclusivity with 40 foundation shades. The minimalist packaging with soft pink accents created instant recognition, while the brand story emphasized "Beauty for All." This cohesive identity helped generate \$100M in sales within 40 days of launch.

7. Set Up the Shop

Setting up an online store is a straightforward method to reach customers worldwide for your makeup line.

I recommend utilizing website builders with customizable templates to reflect your brand's aesthetic.

Your website should present your makeup products in a clean, organized manner, ensuring an attractive and user-friendly shopping experience.

Optimize product pages to avoid clutter, incorporating tabs for ingredients and beauty tips.

Enhance your product pages with high-quality, clear images against a clean background, and use lifestyle photos that feature models of diverse skin tones. This approach aids in appealing to a broad audience.

Include comprehensive product descriptions to improve SEO and provide customers with valuable information, helping them make informed purchases and reducing return rates.

"Customers who purchase cosmetics from you online won't be able to test it out on their skin, so provide as much information as you can to explain the texture, finish, usage, and application of the makeup."
- Delina Yasmeh, Delina Yasmeh, J.D./Tax LL.M. Expert in Mergers and Acuquisitions

Our extra tip for enhancing the customer experience on your website is to add extra media like cosmetic tutorials and video lookbooks to your product pages, blogs, or galleries.

You can also add more context by adding user-generated content or picture reviews to the pages.

Related articles:

• How to Start a Skincare Line Business
• How to Form a Dispensary
• Creating a Sticker Business

8. Market the Brand

Marketing Channels by ROI:

Channel	Customer Acquisition Cost	Conversion Rate	Time to Results	Best For
Instagram Organic	\$0 (time investment)	1-3%	3-6 months	Brand building, community
TikTok Organic	\$0 (time investment)	2-4%	1-6 months	Viral potential, younger demo
Influencer Marketing	\$150-1,500 per post	1.5-5%	1-4 weeks	Social proof, awareness
Paid Social	\$25-45 per customer	2-3%	Immediate	Scaling, retargeting
Email Marketing	\$5-15 per customer	15-25%	1-4 weeks	Retention, repeat purchases
SEO Content	Long-term investment	3-5%	6-12 months	Organic traffic, education

Influencer Strategy Framework:

• Micro-influencers (10k-50k followers): \$150-350 per post
• Mid-tier influencers (50k-500k followers): \$350-3,000 per post
• Macro-influencers (500k+ followers): \$3,000-15,000+ per post

Effective approach: Start with 5-10 micro-influencers rather than one macro-influencer for better engagement and authentic content.

FAQs

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References:

1. https://www.irs.gov/businesses/small-businesses-self-employed/business-structures
2. https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers#