An In-depth Guide on Legally Opening A Californian Med Spa

A medical spa, known as a medspa, is a mix of the traditional spa experience and medical clinics run by licensed medical practitioners. These spas have become increasingly popular in California due to the state's rise in legal cosmetic procedures. They are a means for medical practitioners to expand their knowledge in a new territory that pays up to $1.5 million yearly. But, before venturing into this line of business, here are the Med Spa regulations in California. 

If you want to run a MedSpa in California, you need an operating license and a physician, if you aren’t one. To successfully open and run your MedSpa business in California, a physician has to be on the board of shareholders before the government can trust you enough to let you operate freely.

The most important thing to remember before starting a Med Spa is that you will need a lot of money. You could need anywhere from $700,000 to $1 million to start the business. The Medical Spa requirements California also requires you to have a medical license or a licensed professional on the board of shareholders.

Other key requirements are:

A business plan

Before running off to pay rent, sign a lease or buy a container to start your Med Spa, you need a detailed business plan that outlines how you plan on raising funds, promoting the business, what facilities you need, and staffing. 

2. A bank account

You need a business account for your Med Spa to track all the money that goes into the business to easily calculate your revenue and taxes. You could also get funding through loans from your bank.

3. Insurance

Your business needs to be insured to help with liabilities you may encounter, for example, equipment damage and legal charges against your business.

4. An attorney

You need a lawyer that understands the California Medical Spa rules because you are handling delicate procedures in a private institution you own.

5. Staff

Before your spa can be up and running, you need doctors, nurses and other professionals that would work with you in the Medical spa. It’s best to sign contracts with them before launching the business, as it can help improve your credibility and ensure you’re not understaffed.

As part of the MedSpa regulations in California, you need to register your business as a professional corporation following the California Corporations Code for legal reasons. After registering the facility, you’d get eight more business permits that would take around six months to a year to complete. So, here’s a list of all the business permits you need:

Registration of a professional corporation with the California Secretary of state and California Medical Board

File a customized Article of Incorporation with the California Secretary of state to register your business as a professional corporation to get the other necessary permits. Afterward, apply for the Fictitious Name Permit from the California Medical Board to allow your physicians to perform procedures with an alias. This permit is only helpful if the name being used by the physician doesn’t match what’s on their medical license. The fictitious name permit is granted six weeks after approval and renewed every two years.

2. EIN

EIN stands for Employer Identification Number and is issued by the Internal Revenue Service to levy taxes on corporations. It takes three weeks to process.

3. ITIN

The Individual Taxpayer Identification Number is required if you plan to open a business bank account in the United States. As part of the Medical Spa California Law, you need the ITIN if you are also required to pay individual taxes. It takes 11 weeks to process the ITIN from the Internal Revenue Service.

4. State Employer Identification Number

One of the MedSpa regulations in California is to have a State Employer Identification Number if you’d have employees you pay over $100 in every quarter calendar month. After registering for the number online, you’d receive an eight-digit tax payroll account, the identification number.

5. Establishment Licence

You’d need to get a license from the Board of Barbering and Cosmetology if you’d be starting a new establishment or taking charge of an old one. The board will inspect your establishment three months after approving the license.

6. Seller’s Permit

Another Medical Spa California law is, if you sell any item in retail or wholesale, you need a seller’s permit from the California Department of Tax and Fee Administration. It takes 1-3 business days to get the permit, and there is no expedited service.

7. Business Tax Certificate (only applicable to the City of Los Angeles)

If you’re running your MedSpa within Los Angeles, you need to apply for a Business Tax Certificate with all your basic business information like the EIN, business location, seller’s permit, sales tax numbers, and other requirements. You’d have to wait a month before the certificate is issued to you.

The Med Spa License Requirements California offers the option to start a medspa, even if you don’t have a medical license. But, on the condition that part of the company's shareholders is a physician with an updated medical license. So, it’s easier to own a med spa if you’re already a physician, as the process of getting the permits would be easier since you already have the most essential qualification.

The MedSpa regulations in California seem complicated, but you can effortlessly cross all the hurdles with the (insert company's name) guide. As a registered physician, you can make extra money by running a medspa, as cosmetology procedures have become normalized in California.

The most essential requirements to start a Medical Spa are your medical license, tax identification numbers and certificates, and a seller’s permit.