How to Start a Tattoo Removal Business

Start a Tattoo Removal Business by following these 10 steps:

1. Plan your Tattoo Removal Business
2. Form your Tattoo Removal Business into a Legal Entity
3. Register your Tattoo Removal Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Tattoo Removal Business
6. Get the Necessary Permits & Licenses for your Tattoo Removal Business
7. Get Tattoo Removal Business Insurance
8. Define your Tattoo Removal Business Brand
9. Create your Tattoo Removal Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Tattoo Removal Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Tattoo Removal Business?

Once you’ve determined your state’s laws regarding tattoo removal practices, you can begin writing your business plan and budget. You’ll need enough startup capital to cover the following expenses:

• Office space - Look for a space with approximately 800 square feet. The location should have enough room for a reception and waiting room area, treatment room, and office. To save money, many new tattoo removal businesses rent space in an established spa or medical facility. This delivers the added bonus of providing access to an established customer base.
• Laser equipment - Tattoo removal laser machines cost $150,000 to over $300,000. When deciding what equipment you should invest in, consider factors like what ink colors you want to remove, how much space it requires, and how long it takes to warm up. Consider your long-term goals for the business before investing in any equipment.
• Marketing strategy - As with any business, you will need to start with a plan for advertising. Some equipment manufacturers provide training, technical support, and marketing consulting.
• Medical supplies - This will be a minimal investment, but you will need to keep medical supplies such as antibiotic ointment and bandages on hand to ensure proper aftercare.
• Insurance - Work with a trusted insurance professional to determine your business insurance needs.

What are the ongoing expenses for a Tattoo Removal Business?

Once you have the clinic up and running, your overhead expenses will be fairly minimal. Your monthly budget should include utilities, rent, restocking of medical supplies, equipment maintenance, and insurance. Payroll-related expenses typically represent the largest part of a tattoo removal business’s budget.

Who is the target market?

The tattoo business encompasses everyone aged 18 and up. They span every background, gender, and race. Studies indicate between 17% and 50% experience tattoo regret, and the average age of someone seeking tattoo removal is 29.

How does a Tattoo Removal Business make money?

Your tattoo removal business will make money by charging a fee for each laser appointment. Most tattoo removals require at least three appointments.

How much can you charge customers?

You will charge patients a flat rate for each treatment appointment. Most appointments last about 15 minutes, and the average appointment rate is $200.

How much profit can a Tattoo Removal Business make?

Unlike most startup businesses, tattoo removal clinics typically see a profit within the first six months. If you average 40 clients a week, at $200 per appointment, that comes out to $8,000 per week. This equals out to $416,000 per year. To determine your company’s profits, you would subtract your annual ongoing expenses from $416,000.

How can you make your business more profitable?

As we mentioned earlier, many technicians getting into this industry have a medical or spa background. To drive up profits, consider offering additional services, such as laser hair removal, microneedling, cellulite reduction, and skin rejuvenation.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Tattoo Removal Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Are you interested in being part of the medical or beauty industry, searching for a way to set your own hours and become your own boss? Do you lack the experience but possess the capital and drive to launch your own business? Do you enjoy interacting with people from different backgrounds? If you answered yes to any of these questions, a tattoo removal business might be the ideal career path for you.

What happens during a typical day at a Tattoo Removal Business?

Your primary role as a tattoo removal specialist is to administer laser treatments at the tattoo site. Before getting started, you’ll meet with a new client. This is the time to get to know them and inspect the area in question. Based on your findings, you’ll develop a treatment plan.

Factors that impact how many treatments a patient needs include skin type, tattoo location, age of the tattoo, and tattoo colors. The average laser appointment time is 15 minutes, and most patients require between 5 and 10 treatments.

In addition to meeting with patients, you and your support staff will spend time each day cleaning and maintaining the office space and equipment, meeting with supply vendors, maintaining office and treatment supplies, performing administrative duties, and marketing.

What are some skills and experiences that will help you build a successful Tattoo Removal Business?

The qualifications required to provide tattoo removal services vary from one jurisdiction to another. Some regions consider the process a medical procedure, thus requiring technicians to hold a medical degree of some kind. This could be a registered nurse, physician, physician assistant, or nurse practitioner. Others simply require the proper certification. This map provides detailed information regarding each state’s regulations, contact information, and additional new business resources.

To launch a laser tattoo removal business, most state’s will require you to meet the following criteria:

• Utilize FDA-approved laser equipment designed for tattoo removal
• The operator must be certified and have at least 16 hours of training
• The practice must have a Physician Medical Director that oversees the facility

To manage a successful tattoo removal business, you should have good hand-eye coordination, be detail-oriented, have strong people skills, and be able to make quick judgment calls regarding the safe removal of a tattoo.

As with any new business, it would prove beneficial to have a background in business. If this isn’t your strong suit, look into beginner business classes at your local college, Chamber of Commerce, or your local Small Business Administration.

What is the growth potential for a Tattoo Removal Business?

The tattoo removal industry grew by 440% in its first 10 years. The market is expected to reach over $795 million by the year 2027, leaving significant room for growth for entrepreneurs looking to jump into the industry.