Module 10: Business Setup and Legal Compliance 

Section 10.1: How to Legally Start a Spray Tanning Business 

Introduction 

Starting a professional spray tanning business is more than learning technique — it’s about building a legally compliant, structured, and reputable enterprise that can grow and scale with confidence. Whether you plan to operate as a solo technician, mobile tanner, or full studio owner, following the correct legal setup steps ensures protection, legitimacy, and credibility. 

This section walks through every step required to legally establish your spray tanning business — from registering your company and securing insurance to choosing a business name, setting up finances, and preparing for compliance inspections. 

1. Defining Your Business Structure 

Your first step is to decide what type of business entity best fits your goals. Each structure has different tax implications, liability protections, and paperwork requirements. 

Common Options: 

• Sole Proprietorship: Simple to start; ideal for solo operators, but offers no liability protection. 

• Limited Liability Company (LLC): The most popular choice for beauty professionals. It separates your personal and business assets and provides legal protection. 

• Corporation (S-Corp or C-Corp): Suitable for large salons or multi-location operations; more complex tax and filing obligations. 

• Partnership: For two or more owners; requires a written partnership agreement. 

For most new spray tanning professionals, forming an LLC provides the best balance of flexibility, credibility, and protection. 

2. Choosing a Business Name 

Your name becomes your identity — it should be legally unique, easy to remember, and relevant to tanning or beauty. 

Checklist for Choosing a Name: 

• Search your state’s business registry to ensure the name isn’t already in use. 

• Check domain name availability (for example, YourBrandTan.com). 

• Verify social media handle availability for brand consistency. 

• Avoid names too similar to competitors or trademarks. 

• File a DBA (Doing Business As) if your business name differs from your personal name. 

Once selected, register your name through your Secretary of State or equivalent agency. 

3. Obtaining a Business License 

Every state and municipality requires basic business licensing. The type you need depends on your location and whether you operate from a salon, home, or mobile setup. 

Steps to Obtain: 

1. Contact your local city or county clerk’s office to confirm licensing requirements. 

1. Apply for a general business license and any additional home occupation permit if operating from home. 

1. Renew annually or as required. 

Keep a printed and digital copy of your license visible in your workspace. 

4. Understanding Zoning and Location Laws 

If you plan to open a physical studio, confirm that your location is properly zoned for cosmetic or beauty services. 

Considerations: 

• Commercial zoning is typically required for storefront operations. 

• Home-based businesses may require special “home occupation” approval. 

• Parking availability, ADA compliance, and restroom access may be mandated. 

• Noise, ventilation, and signage restrictions may apply. 

Violating zoning rules can result in fines or forced closure — always verify before signing a lease or opening your doors. 

5. Registering for Taxes and Identification Numbers 

To operate legally and open a business bank account, you’ll need a federal and possibly state tax ID. 

Steps: 

• Apply for an EIN (Employer Identification Number) from the IRS — free and fast at irs.gov. 

• Register for state sales tax if you sell retail tanning products. 

• Keep all receipts for tax deductions such as equipment, insurance, and education expenses. 

You must report all income from spray tanning services, even if you’re a sole proprietor. 

6. Business Bank Account and Finances 

Never mix personal and business funds — it complicates taxes and removes liability protection. 

Best Practices: 

• Open a separate business checking account using your EIN. 

• Obtain a business debit or credit card. 

• Use bookkeeping software (like QuickBooks or Wave) to track income and expenses. 

• Maintain detailed records for at least seven years for audit protection. 

Financial transparency supports growth and strengthens your professional credibility. 

7. Obtaining Necessary Permits and Health Clearances 

Depending on your state or country, spray tanning may fall under cosmetology or esthetics regulations, or it may be unregulated. 

Common Requirements: 

• Health department inspection for cleanliness and ventilation. 

• Sanitation and infection control compliance. 

• Equipment safety checks. 

• Possibly a cosmetology or salon establishment license (varies by state). 

Check with your State Board of Cosmetology or Department of Health to confirm if spray tanning requires additional licensing where you live. 

8. Liability and Professional Insurance 

Even with proper training, accidents can happen. Insurance protects you and your clients. 

Essential Policies Include: 

• General Liability Insurance: Covers client injuries, property damage, or accidents. 

• Professional Liability (Malpractice) Insurance: Covers claims related to service errors or allergic reactions. 

• Product Liability: Protects against adverse reactions from solutions or products used. 

• Business Property Insurance: Covers stolen or damaged equipment. 

Insurance is not optional — many landlords and event organizers require proof of coverage before allowing you to operate. 

9. Legal Disclaimers and Waivers 

Every client should complete and sign a consent and liability waiver before their first tan. 

This protects both you and them by confirming that: 

• The client understands the service process. 

• They disclose allergies, pregnancy, or medical conditions. 

• They acknowledge spray tanning does not protect against UV rays. 

• They accept that results vary based on skin type and aftercare. 

Keep all signed waivers in secure storage for future reference. 

10. Setting Up Recordkeeping Systems 

Documentation is the foundation of professionalism. Keep organized records of: 

• Licenses, permits, and renewals. 

• Client consent and intake forms. 

• Purchase receipts and inventory logs. 

• Appointment history and service notes. 

• Cleaning and maintenance schedules. 

Maintain both digital and physical backups. Organized recordkeeping protects you in audits, disputes, or inspections. 

11. Meeting Health and Sanitation Standards 

Even if not regulated under cosmetology laws, you must comply with basic sanitation and safety standards for public health. 

Core Requirements: 

• Maintain clean equipment, surfaces, and flooring. 

• Sanitize between clients with EPA-approved products. 

• Provide adequate ventilation or air filtration. 

• Dispose of single-use items after every session. 

• Wear gloves, masks, or protective eyewear when appropriate. 

These measures are essential for professionalism and client safety — and they demonstrate compliance readiness. 

12. Home-Based vs. Mobile vs. Studio Setup 

Each business model has unique legal considerations. 

Home-Based: 

• Must comply with local zoning laws and “home occupation” rules. 

• Client access, parking, and signage may be restricted. 

Mobile: 

• May require a separate mobile business permit. 

• Must transport solutions safely and maintain sanitation on the go. 

Studio: 

• Requires commercial leasing agreements and potential fire or health inspections. 

• Often subject to cosmetology establishment requirements. 

Always check your city or county regulations before opening or advertising services. 

13. Business Branding and Legal Protection 

Once your business is established, protect your intellectual property. 

Steps: 

• Trademark your logo or brand name through the U.S. Patent and Trademark Office. 

• Register your website domain immediately. 

• Include copyright notices on all photos, marketing materials, and written content. 

• Use consistent branding across online and physical spaces. 

Brand protection prevents imitation and reinforces your professional identity. 

14. Legal Marketing Practices 

Your advertising must always be truthful and transparent. Avoid any claims that may be misleading or unverifiable. 

Ethical Guidelines: 

• Do not claim “FDA-approved” unless backed by official documentation (DHA is FDA-approved for external use only). 

• Avoid making medical claims such as “prevents skin aging” or “eliminates cellulite.” 

• Use only real, consented before-and-after photos. 

• Disclose all pricing clearly, including add-ons or upgrades. 

Honest marketing builds long-term credibility and avoids regulatory penalties. 

15. The Foundation of Professional Legitimacy 

Legal compliance is not just about avoiding fines — it’s about positioning yourself as a credible, trustworthy professional. When clients see visible business licenses, insurance certificates, and signed documentation, they know they are in safe hands. 

A properly registered and insured spray tanning business communicates integrity, reliability, and dedication — traits that separate professionals from hobbyists. 

Conclusion 

Starting your spray tanning business the right way ensures peace of mind, financial protection, and long-term growth. From business registration to licensing and insurance, every legal step you take strengthens your professional foundation. 

The more legitimate and compliant your business is, the more confident your clients — and your community — will be in choosing you. 

Section 10.2: Required Licenses, Permits, and Insurance Coverage 

Introduction 

A professional spray tanning business must operate within clear legal boundaries to remain safe, compliant, and insurable. Understanding and maintaining the proper licenses, permits, and insurance coverage protects both your livelihood and your reputation. 

This section explains, in detail, the mandatory and recommended legal requirements for spray tanning professionals, including how to determine what’s needed in your area, how to apply, and how to maintain compliance year-round. 

1. Why Licenses and Insurance Matter 

Operating without proper licensing or insurance can lead to fines, forced closures, or even lawsuits. Beyond legality, having these credentials shows clients you’re professional, trustworthy, and fully accountable. 

When clients see your permits and insurance displayed, they understand you are a legitimate business that values safety, regulation, and transparency. 

2. The Role of Local and State Regulations 

Every state — and often every county or city — has its own rules for spray tanning services. Some states regulate tanning under cosmetology boards, while others classify it as an independent beauty service. 

Common Regulatory Bodies Include: 

• State Board of Cosmetology or Esthetics 

• Local Department of Health 

• City or County Business Licensing Division 

• Fire or Building Department (for commercial spaces) 

Because regulations differ, always contact both your state board and local city office to confirm your exact licensing requirements before beginning operations. 

3. Basic Business Licensing Requirements 

Nearly all jurisdictions require a business license for legal operation. 

How to Obtain It: 

• Apply through your local city hall or county clerk’s office. 

• Provide proof of identification, address, and business name. 

• Pay an annual fee (typically $25–$200). 

• Renew annually to remain in good standing. 

If working from home, you may also need a home occupation permit to legally perform services from a residential address. 

4. Cosmetology and Esthetic Licensing 

Spray tanning is often classified differently depending on the state: 

• Some states consider it a cosmetic service, requiring a cosmetology or esthetician license. 

• Other states treat it as unregulated personal service, meaning no formal state license is needed. 

• In certain areas, you may only need to complete a sanitation certification or safety course. 

Examples: 

• California: No cosmetology license required for spray tanning. 

• Texas: Unregulated, but local business registration is mandatory. 

• Florida: Typically requires a salon or mobile vendor license. 

• New York: Must operate under a registered appearance enhancement business license. 

Always verify with your State Board of Cosmetology for the most accurate, current information. 

5. Health and Safety Permits 

Some local health departments require businesses offering close-contact services to undergo inspection or obtain special permits. 

Common Health Permit Requirements: 

• Proof of adequate ventilation or filtration system. 

• Sanitation plan or written cleaning procedures. 

• Handwashing station or access to sink. 

• Proper waste disposal system for disposables. 

• Use of only FDA-approved cosmetic ingredients. 

Inspections may be scheduled before opening and renewed annually or biannually. 

6. Mobile Spray Tanning Licensing 

If you provide mobile tanning services, additional regulations may apply. 

Typical Mobile Licensing Rules: 

• Mobile business permit through city or county office. 

• Vehicle inspection (for cleanliness and safety). 

• Proof of portable sanitation supplies and spill containment. 

• Clearly labeled vehicle with business name and contact info. 

• Insurance policy that covers off-site operations. 

Mobile operators must follow the same sanitation and recordkeeping standards as fixed-location studios. 

7. Federal and State Tax Registration 

Once your business is licensed, you’ll need proper tax identification. 

Required Registrations Include: 

• EIN (Employer Identification Number): Obtained from the IRS for free. 

• State Sales Tax Permit: If selling retail products such as tanning solutions or aftercare lotions. 

• Local Business Tax Receipt: Some counties require this annually. 

You must charge and remit sales tax on all product sales, even if services themselves are not taxed in your state. 

8. Zoning and Facility Compliance 

Your physical workspace must comply with zoning laws and safety codes. 

Key Facility Requirements: 

• Properly zoned for beauty or cosmetic services. 

• Compliant with fire safety and electrical codes. 

• Accessible to clients with disabilities (ADA compliance in the U.S.). 

• Clear floor plans for equipment placement and ventilation. 

Always obtain approval before modifying a commercial space — unauthorized construction can violate local ordinances. 

9. Professional and Business Insurance Policies 

Insurance protects against financial losses caused by accidents, errors, or unforeseen events. Every professional should carry multiple forms of coverage. 

Essential Policies Include: 

• General Liability Insurance: Covers accidents like client slips or spills. 

• Professional Liability (Errors & Omissions): Protects against claims of service-related injury or dissatisfaction. 

• Product Liability: Covers adverse reactions from solutions, bronzers, or sprays. 

• Property Insurance: Protects equipment and furnishings from theft or damage. 

• Mobile Business Insurance: For those providing in-home or on-location services. 

Reputable insurers that specialize in beauty professionals include Elite Beauty Society, ASCP (Associated Skin Care Professionals), and Beauty & Bodywork Insurance (BBI). 

10. Insurance Policy Details and Coverage Amounts 

Coverage needs vary based on your business model. 

General Guidelines: 

• General Liability: Minimum of $1 million per occurrence. 

• Professional Liability: Minimum of $1–2 million coverage. 

• Product Liability: At least $1 million for retail or custom solutions. 

• Property Coverage: Based on the replacement value of your equipment. 

Always review exclusions and ensure “spray tanning” is listed specifically as a covered service. 

11. Certificates of Insurance (COI) 

A Certificate of Insurance is a document proving that your business is covered. Landlords, event hosts, or bridal vendors often request a COI before allowing you to participate. 

Keep on file: 

• One printed copy for display in your studio. 

• One digital copy for online submissions. 

• Backup stored in secure cloud storage. 

Display your insurance certificate visibly in your workspace to reinforce client trust. 

12. Business Registration Renewals and Recordkeeping 

Most licenses and permits must be renewed annually. Failing to do so can result in automatic expiration. 

Best Practices: 

• Create a renewal calendar with all license dates. 

• Save digital and physical copies of every license, inspection, and insurance policy. 

• File renewal reminders 30–60 days before expiration. 

• Keep your COI updated anytime you modify your coverage. 

Consistent recordkeeping prevents lapses and ensures uninterrupted operation. 

13. OSHA and FDA Considerations 

Spray tanning professionals must follow certain federal guidelines: 

OSHA (Occupational Safety and Health Administration): 

• Requires ventilation systems that reduce mist exposure. 

• Mandates PPE for technicians (gloves, masks, eyewear). 

• Encourages regular cleaning and chemical handling training. 

FDA (Food and Drug Administration): 

• DHA (the tanning agent) is approved for external application only. 

• Clients must avoid inhalation, ingestion, or eye contact. 

• Provide protective gear (nose filters, eye covers) during each service. 

Staying compliant keeps both you and your clients safe. 

14. Optional Certifications and Continuing Education 

Although not legally required, continuing education strengthens your credibility and marketability. 

Recommended Additions: 

• CPR or first aid certification. 

• Infection control training. 

• Business management or marketing courses. 

• Advanced spray tanning artistry or contouring certification. 

These show your commitment to excellence and can attract partnerships or franchise opportunities. 

15. Maintaining Professional Integrity 

Licenses and insurance aren’t just paperwork — they represent professionalism, ethics, and accountability. Clients, landlords, and business collaborators feel confident working with fully credentialed professionals. 

The goal is to operate so that every aspect of your business — from the service itself to the legal documentation behind it — reflects reliability and care. 

Conclusion 

A legally compliant spray tanning business is one that protects everyone involved — you, your clients, and your community. By securing the correct licenses, permits, and insurance coverage, you safeguard your livelihood and present yourself as a trusted, legitimate expert in your field. 

Compliance isn’t a one-time task — it’s an ongoing commitment to professionalism, responsibility, and excellence. 

Section 10.3: Recordkeeping and Client Documentation 

Introduction 

Meticulous recordkeeping and client documentation are the backbone of a professional spray tanning business. They ensure compliance, protect you legally, enhance client care, and strengthen your reputation for safety and professionalism. Whether you’re a mobile operator or own a full studio, maintaining accurate records will keep your business organized, audit-ready, and protected from liability. 

In this section, you’ll learn exactly what records to keep, how long to keep them, and how to organize client documentation to meet professional and legal standards. 

1. The Importance of Recordkeeping 

Proper records are more than just good business practice — they’re legal protection and client assurance. 

Benefits Include: 

• Proof of compliance with local and state regulations. 

• Evidence in the event of insurance claims or disputes. 

• Tracking client history, preferences, and results. 

• Monitoring inventory, income, and expenses for tax filing. 

• Demonstrating professionalism during inspections or audits. 

A disorganized business can easily lose credibility — precise documentation ensures longevity and trust. 

2. Types of Records Every Spray Tanning Professional Must Maintain 

Your business should maintain both operational and client-based documentation. 

Operational Records: 

• Business licenses, permits, and insurance certificates. 

• Vendor and product receipts. 

• Equipment maintenance logs. 

• Training certificates and continuing education records. 

• Financial statements, income reports, and tax filings. 

Client Records: 

• Intake forms. 

• Consent and liability waivers. 

• Skin assessments and color selection notes. 

• Aftercare instructions provided. 

• Service history (dates, products used, results). 

• Allergy or sensitivity records. 

Each of these components contributes to a full picture of compliance and client safety. 

3. Client Intake Forms 

The client intake form is the foundation of personalized service and risk management. 

It should include: 

• Full name, address, phone number, and email. 

• Emergency contact information. 

• Date of birth (if required by your insurer). 

• How they heard about your business (marketing insight). 

• Service date and technician name. 

Having this information ensures you can communicate effectively, track service frequency, and meet liability requirements. 

4. Health and Medical Information Collection 

Before every tan, it’s important to ask the right health questions. Clients may have conditions or sensitivities that require precautions. 

Common Questions Include: 

• Are you pregnant or breastfeeding? 

• Do you have asthma, eczema, or psoriasis? 

• Are you allergic to DHA, aloe, or fragrance? 

• Have you recently waxed, shaved, or exfoliated? 

• Do you have open cuts, rashes, or infections? 

Document all answers carefully. This protects you in case of allergic reactions or unexpected outcomes. 

5. Consent and Liability Waivers 

Every client must sign a consent and liability waiver prior to receiving service — even returning clients. 

The waiver should confirm: 

• The client understands spray tanning is cosmetic, not medical. 

• Results may vary by skin type and aftercare. 

• The client has disclosed all allergies or conditions. 

• They consent to having DHA and related ingredients applied. 

• They release the technician and business from liability. 

Keep both digital and hard copies on file for at least three years (or longer if required by your insurer). 

6. Skin Assessment and Color Selection Documentation 

Recording client skin data allows for precise customization and consistent results. 

Document: 

• Fitzpatrick skin type (I–VI). 

• Natural undertone (cool, warm, neutral). 

• Chosen tanning solution (DHA % and brand). 

• Pre-tan skin condition (dry, oily, sensitive). 

• Any contouring or add-on services applied. 

This not only improves client satisfaction but also serves as proof of professional due diligence. 

7. Service Record and Visit Log 

Every appointment should have a service entry that details what was performed. 

Include: 

• Service date and start time. 

• Products and formulas used. 

• Solution batch or lot number. 

• Technician’s initials. 

• Development time and aftercare instructions. 

• Client feedback or issues noted. 

This record helps track trends, product performance, and client preferences over time. 

8. Photo Documentation (Optional but Recommended) 

Before-and-after photos, with signed consent, create visual proof of your work and assist in quality control. 

When documenting: 

• Take consistent lighting and angles for comparison. 

• Label files with date and client initials. 

• Store in a secure folder with restricted access. 

Photos are valuable for portfolio building and for resolving service disputes fairly. 

9. Storage and Security of Client Information 

Client data is sensitive and protected under privacy laws. 

Data Protection Practices: 

• Use encrypted, password-protected devices or cloud services. 

• Limit access to authorized staff only. 

• Shred paper documents when no longer needed. 

• Back up files regularly in secure cloud storage. 

You are legally responsible for safeguarding client records against theft or unauthorized disclosure. 

10. Retention Periods for Business and Client Records 

Each record type has its own recommended storage duration. 

Guidelines: 

• Client consent forms: at least 3–5 years after last visit. 

• Financial records and tax filings: 7 years minimum. 

• Insurance and licensing documentation: permanently while active. 

• Health and safety logs: 3 years minimum. 

• Employee records (if applicable): 4 years after termination. 

Always verify with your insurer or state board for specific retention requirements. 

11. Digital vs. Paper Recordkeeping Systems 

Choose a system that suits your business scale and comfort level. 

Digital Systems (Recommended): 

• Use professional client management software like Vagaro, Square Appointments, or GlossGenius. 

• Automate digital waivers and forms for easy signing and storage. 

• Sync client data with appointment scheduling for efficiency. 

Paper Systems: 

• Use organized binders with labeled sections. 

• Store in locked cabinets. 

• Maintain an index for easy reference. 

Regardless of format, consistency and accuracy are key. 

12. Audit and Inspection Readiness 

Regulatory agencies may conduct periodic inspections or audits. Maintaining organized records ensures you are always prepared. 

Be ready to provide: 

• Business license, insurance certificates, and inspection reports. 

• Cleaning logs and product safety data sheets (SDS). 

• Client consent forms and sanitation protocols. 

Auditors appreciate businesses that demonstrate organization and transparency — it reflects professionalism and compliance. 

13. Product and Solution Tracking Logs 

Keeping detailed product logs ensures accountability and client safety. 

Track: 

• Solution name and batch number. 

• Purchase date and supplier. 

• Expiration date. 

• Opened date and disposal date. 

In the rare event of an allergic reaction or recall, accurate tracking enables immediate identification of affected batches. 

14. Employee or Assistant Recordkeeping (If Applicable) 

If you employ staff or independent contractors: 

• Keep copies of certifications, W-9 forms, and contracts. 

• Maintain payroll records and hours worked. 

• Document training, safety briefings, and disciplinary notes. 

Proper employee documentation protects your business during audits and disputes. 

15. Continuous Improvement Through Data 

Recordkeeping isn’t just about compliance — it’s about growth. Reviewing client data can reveal trends that help you improve. 

Examples: 

• Which DHA percentages yield the highest satisfaction. 

• Peak service times and repeat customer rates. 

• Seasonal product demand or common feedback patterns. 

Analyzing records transforms data into insight, helping you refine services, pricing, and marketing strategy. 

Conclusion 

A well-documented business is a secure business. Recordkeeping builds a paper trail of professionalism, accountability, and consistency that protects your reputation and supports growth. 

Every form you file and every signature you collect reinforces one message: you operate with care, transparency, and integrity. 

Section 10.4: Contracts, Tax Registration, and Financial Tracking 

Introduction 

A professional spray tanning business requires more than artistry and skill — it needs strong financial organization, clear contracts, and proper tax compliance. This section walks you step-by-step through how to create solid client and vendor contracts, properly register and manage taxes, and track your business finances so you remain profitable, compliant, and protected. 

Whether you’re a solo artist or own a studio, mastering these systems early prevents costly mistakes and establishes your long-term success as a legitimate professional. 

1. The Importance of Contracts and Financial Transparency 

Contracts and financial tracking aren’t just paperwork — they’re the foundation of professionalism. 

They protect you by: 

• Outlining terms and expectations for both you and your clients. 

• Reducing misunderstandings and disputes. 

• Providing legal proof if a disagreement arises. 

• Helping you understand your true profit margins. 

• Making taxes simple and organized. 

A business that runs on contracts and accurate financial data inspires confidence — not only from clients, but also from partners, landlords, and lenders. 

2. Creating Professional Service Contracts 

Every client transaction should be backed by a clearly written agreement — even if it’s short and digital. 

Your service contract should include: 

• Client’s full name and contact information. 

• Detailed description of the service (type of tan, add-ons, etc.). 

• Price, payment terms, and refund/cancellation policy. 

• Appointment date and time. 

• Liability disclaimer. 

• Signatures (digital or handwritten). 

Digital platforms like DocuSign, Jotform, or Square Appointments make it easy to create, sign, and store these contracts securely. 

3. Client Policy Agreements 

Beyond individual contracts, a client policy agreement outlines your studio rules and expectations. This document should be signed once and kept on file. 

Typical Policies Include: 

• Appointment punctuality and late policy. 

• Cancellation and rescheduling rules. 

• Payment methods accepted (cash, card, digital). 

• Refund or reapplication policy. 

• Hygiene and preparation requirements. 

• Photography and consent rules. 

Posting these policies visibly in your studio or on your booking site also reinforces transparency. 

4. Vendor and Supplier Contracts 

If you purchase products or solutions from suppliers, a vendor contract ensures reliability and price stability. 

Vendor Agreements Should Cover: 

• Product types, quantities, and pricing. 

• Delivery timelines and terms. 

• Replacement policy for defective items. 

• Liability coverage for product safety. 

• Payment methods and deadlines. 

Having signed contracts with your suppliers prevents inventory disputes and allows you to maintain consistent service quality. 

5. Employee and Independent Contractor Agreements 

If you hire spray tan technicians or assistants, written contracts are mandatory for legal compliance. 

Your Employment/Contractor Agreement Should Include: 

• Job title and responsibilities. 

• Payment structure (hourly, commission, or rental). 

• Non-compete or confidentiality clauses (optional but recommended). 

• Equipment ownership and maintenance responsibilities. 

• Termination conditions and dispute resolution terms. 

These agreements protect your business from liability and clarify expectations between all parties. 

6. Understanding Business Tax Registration 

Every spray tanning business must pay taxes on income and, in many cases, sales. Registering properly from day one avoids fines and simplifies accounting. 

Steps to Register: 

• Obtain an EIN (Employer Identification Number) at irs.gov — required for all LLCs or corporations. 

• Register for state and local tax IDs if required. 

• Apply for a sales tax permit if you sell retail items like lotions or tan extenders. 

• Register for self-employment taxes if you operate as a sole proprietor. 

Failure to register can result in late penalties or missed deductions. 

7. Types of Taxes You’ll Be Responsible For 

Spray tanning professionals must manage multiple tax categories: 

Federal Taxes: 

• Income tax (based on your net profit). 

• Self-employment tax (covers Social Security and Medicare if self-employed). 

State and Local Taxes: 

• Sales tax on retail product sales. 

• State income tax (where applicable). 

• Business privilege tax in some cities. 

Employer Taxes (if you have staff): 

• Payroll tax and unemployment insurance. 

• Workers’ compensation premiums. 

Knowing these obligations ensures your business stays compliant and financially stable. 

8. Bookkeeping and Financial Tracking Systems 

Accurate bookkeeping gives you control over your cash flow, taxes, and profits. 

Recommended Tools: 

• QuickBooks: Industry standard for small businesses. 

• Wave Accounting: Free and beginner-friendly. 

• Square or Stripe Dashboard: Tracks payments automatically. 

• Excel or Google Sheets: Good for manual recordkeeping when starting out. 

Track every transaction — income from clients, expenses on products, rent, utilities, and marketing — from day one. 

9. Setting Up Your Chart of Accounts 

A chart of accounts organizes your business finances into categories, making it easier to track performance and file taxes. 

Essential Categories Include: 

• Income: Service revenue, product sales, training income. 

• Expenses: Supplies, rent, marketing, insurance, education. 

• Assets: Equipment, spray guns, tents, lighting. 

• Liabilities: Loans, credit cards, taxes owed. 

• Owner’s Draw: Personal withdrawals from business funds. 

This structure ensures your books remain clean and audit-ready. 

10. Tracking Income and Expenses 

Always record income and expenses as they occur, not at the end of the month. 

Income Examples: 

• Spray tanning sessions. 

• Mobile appointments. 

• Bridal parties or events. 

• Retail product sales. 

Expense Examples: 

• Spray solutions, filters, and gloves. 

• Cleaning supplies and disposables. 

• Website hosting, advertising, and business software. 

• Insurance and license renewals. 

Consistent tracking helps you calculate true profit and forecast growth. 

11. Using Invoicing Systems for Clients 

Professional invoicing boosts credibility and helps track payment history. 

Best Practices: 

• Send invoices through systems like Square, HoneyBook, or QuickBooks. 

• Include your business name, address, and logo. 

• Clearly list services rendered and taxes charged. 

• Provide digital payment options (credit, debit, or mobile pay). 

• Always mark paid invoices immediately to avoid confusion. 

Keep all invoices on file for tax and audit purposes. 

12. Budgeting for Financial Health 

Budgeting helps you anticipate expenses and plan for sustainable growth. 

Monthly Budget Categories: 

• Fixed costs (rent, software subscriptions, utilities). 

• Variable costs (solutions, disposables, marketing). 

• Emergency savings (minimum of 3 months of expenses). 

• Growth investment (education, upgrades, rebranding). 

Revisit your budget quarterly to adjust for seasonal fluctuations and business expansion. 

13. Tax Deductions for Spray Tanning Professionals 

Proper financial tracking allows you to claim legitimate tax deductions. 

Common Deductible Expenses Include: 

• Tanning solutions, equipment, and cleaning supplies. 

• Uniforms or branded apparel. 

• Rent and utilities for studio space. 

• Mobile vehicle expenses (mileage, gas, tolls). 

• Marketing, website, and social media ads. 

• Business insurance premiums. 

• Professional training and certification costs. 

Keep receipts for every deduction claimed — the IRS or your local tax agency may request proof. 

14. Working with an Accountant or Bookkeeper 

Even if you manage daily bookkeeping yourself, hiring a professional accountant annually is highly recommended. 

They can: 

• Review your income statements and expenses. 

• Maximize your deductions legally. 

• File accurate returns and prevent costly errors. 

• Help you plan for quarterly or estimated tax payments. 

Investing in professional financial guidance saves time, stress, and money in the long run. 

15. Financial Transparency and Legal Protection 

Honest, transparent financial practices protect your credibility and ensure long-term growth. Mixing personal and business finances, hiding income, or misreporting deductions can trigger audits or penalties. 

Keep every receipt, track every dollar, and always maintain documentation that supports your reported income and expenses. 

Transparency is the mark of a true professional — and clients, investors, and partners will notice. 

Conclusion 

Contracts, tax registration, and financial tracking form the legal and operational core of your spray tanning business. By establishing professional agreements, maintaining accurate financial records, and adhering to tax regulations, you create a business built for success, not stress. 

Every form, every invoice, every receipt is a building block in your professional foundation — one that proves your business is organized, compliant, and worthy of long-term trust. 

Section 10.5: State-by-State Licensing Appendix 

Summary of Cosmetology and Esthetic Requirements Across Regions 

Introduction 

Spray tanning regulations vary significantly across the United States. Some states treat spray tanning as an independent beauty service that requires only basic business licensing, while others classify it under cosmetology or esthetics, requiring formal education or state-issued credentials. 

This section provides a comprehensive overview of licensing laws and regulatory standards for spray tanning professionals across all 50 U.S. states. It is designed to help you verify what’s required in your location and ensure full compliance before offering services to the public. 

⚠️ Note: Regulations may change over time. Always verify with your State Board of Cosmetology, Department of Health, or Business Licensing Division before starting your business. 

1. States Where Spray Tanning Is Unregulated 

These states currently do not require a cosmetology, esthetics, or tanning license to perform spray tanning services. However, general business licensing, insurance, and sanitation compliance are still mandatory. 

Unregulated States Include: 

• Alabama 

• Alaska 

• Arizona 

• Arkansas 

• California 

• Colorado 

• Connecticut 

• Delaware 

• Georgia 

• Idaho 

• Indiana 

• Kansas 

• Kentucky 

• Maine 

• Maryland 

• Michigan 

• Mississippi 

• Missouri 

• Nebraska 

• New Jersey 

• North Dakota 

• Ohio 

• Oklahoma 

• Oregon 

• Pennsylvania 

• Rhode Island 

• South Carolina 

• South Dakota 

• Tennessee 

• Texas 

• Utah 

• Vermont 

• Virginia 

• Washington 

• West Virginia 

• Wisconsin 

• Wyoming 

Requirements in These States: 

• Obtain a general business license from your city or county. 

• Maintain liability insurance and comply with sanitation laws. 

• Use only FDA-approved DHA-based products for external use. 

• Follow OSHA ventilation and safety guidelines. 

Even if unregulated, professionalism and hygiene standards remain essential — and clients will expect them. 

2. States That Require a Cosmetology or Esthetics License 

In these states, spray tanning falls under cosmetology, esthetics, or appearance enhancement laws. You must complete a licensed training program and pass a state exam to perform or offer spray tanning services commercially. 

States with Licensing Requirements: 

• Florida 

• Hawaii 

• Illinois 

• Iowa 

• Louisiana 

• Massachusetts 

• Minnesota 

• Montana 

• Nevada 

• New Hampshire 

• New Mexico 

• New York 

• North Carolina 

Typical Requirements: 

• Completion of 600–1,200 hours in an approved esthetics or cosmetology program. 

• Passing a state board written and practical exam. 

• Operating from a licensed salon or establishment. 

• Meeting sanitation and ventilation standards. 

• Renewing license every 1–2 years with continuing education credits (in some states). 

3. Example State Summaries 

Florida 

Spray tanning is regulated under the Department of Business and Professional Regulation (DBPR). 

• You must operate from a licensed salon or apply for a mobile salon permit. 

• Home-based tanning services require inspection and licensing. 

• Business insurance is mandatory. 

• Individual esthetic or cosmetology licenses are encouraged for salon owners. 

New York 

Spray tanning is considered an Appearance Enhancement Service. 

• Requires a business license under the Division of Licensing Services. 

• Technicians must hold an esthetician license. 

• Home-based tanning businesses are generally not permitted. 

• Regular inspections ensure sanitation and ventilation compliance. 

Nevada 

Regulated under the Nevada State Board of Cosmetology. 

• Must complete a 600-hour esthetics program or be employed under a licensed salon. 

• Must use approved ventilation and meet sanitation requirements. 

• Licenses renew every 2 years with proof of continuing education. 

Hawaii 

Requires an esthetician license for spray tanning. 

• Training must be completed at an approved cosmetology school. 

• All services must be performed in a licensed establishment. 

Illinois 

Technicians must hold an esthetician or cosmetologist license. 

• Spray tanning is classified under skin care services. 

• Sanitation and recordkeeping are regulated by the Illinois Department of Public Health. 

North Carolina 

Spray tanning is regulated under the State Board of Cosmetic Art Examiners. 

• Requires a cosmetologist or esthetician license. 

• Business establishments must also be licensed and inspected. 

4. States That Require a Business or Tanning Facility License 

Some states don’t regulate the individual spray tan artist but do require the facility itself to be licensed or inspected. 

Examples Include: 

• Florida: Salon or mobile salon license. 

• New York: Appearance enhancement business license. 

• Nevada: Cosmetology establishment license. 

• Louisiana: Salon or spa facility license. 

Facility licenses often involve inspections for: 

• Cleanliness and sanitation procedures. 

• Adequate lighting and ventilation. 

• Proper disposal of waste and disposables. 

• Accessibility and safety compliance. 

5. State Boards and Agencies to Contact 

When researching your licensing requirements, start with these offices: 

• State Board of Cosmetology or Esthetics – Oversees training and licensing. 

• Department of Health – Regulates sanitation and facility safety. 

• Department of Business & Professional Regulation – Issues business permits. 

• Secretary of State or City Clerk’s Office – Handles business name registration and local licenses. 

Each agency may regulate a different part of your business, so it’s important to confirm requirements with all relevant offices. 

6. Reciprocity and Multi-State Practice 

If you plan to operate in multiple states, check for reciprocity agreements, which may allow you to transfer your cosmetology or esthetician license from one state to another. 

General Reciprocity Rules: 

• Most states allow license transfer if training hours meet or exceed their minimum requirement. 

• You may need to take a short state law or sanitation exam. 

• Always maintain your original state license in good standing. 

If operating mobile services across state lines, ensure you meet both states’ licensing and insurance requirements before booking clients. 

7. Key Legal Standards That Apply in Every State 

Even if your state does not regulate spray tanning directly, every professional must comply with: 

• FDA regulations on DHA use and safety labeling. 

• OSHA ventilation and chemical handling standards. 

• Local sanitation and waste disposal ordinances. 

• Business tax registration and insurance coverage. 

• Client consent and recordkeeping obligations. 

These laws exist to protect both technicians and clients, and compliance demonstrates your professionalism. 

8. Common Licensing Mistakes to Avoid 

Many new professionals unintentionally violate regulations due to misunderstanding local rules. 

Avoid These Errors: 

• Operating without verifying your city’s local licensing rules. 

• Offering mobile services without a mobile business permit. 

• Using “FDA-approved tanning solutions” incorrectly — DHA is only approved for external use. 

• Renting space in an unlicensed salon. 

• Failing to renew licenses or insurance annually. 

Ignorance of the law is never accepted as an excuse — always stay proactive about compliance. 

9. Continuing Education and Certification Recognition 

While not all states require continuing education, maintaining current certifications demonstrates commitment and skill. 

You can: 

• Renew your certification every 2–3 years through your training provider. 

• Take advanced workshops in spray tan artistry, contouring, or body bronzing. 

• Join professional associations like NABBA (National Association of Beauty and Body Artists). 

This commitment enhances credibility and keeps your techniques modern and compliant with evolving safety standards. 

10. Keeping Up with Legal Updates 

Beauty regulations change frequently — especially with the growing popularity of sunless tanning. 

How to Stay Informed: 

• Subscribe to newsletters from your State Board of Cosmetology. 

• Attend annual industry conferences or webinars. 

• Follow professional groups on LinkedIn or Facebook that post regulatory updates. 

• Recheck licensing requirements at least once per year. 

Proactive awareness protects your business from unexpected fines or interruptions. 

Conclusion 

No matter where you live, operating legally is the foundation of professionalism. Understanding your state’s licensing structure ensures that you protect your career, your clients, and your reputation. 

Whether you are in a state that requires formal licensure or one that does not, always uphold the highest possible standards of safety, sanitation, and ethics — because excellence should never depend on regulation.