The New York State Education Department (NYSED) Office of the Professions required a company who performs the medical spa service must be registered as a professional corporation (PC) or professional Limited Liability Company (PLLC), and all the owners of this professional company must have physician license in New York, which raises the bar for foreign business owner who want to involve in this industry. The following will introduce the requirements and procedures of medical spa business registration.

Partnering with professional physician is the key to operate a medical spa business. New York state require the following medical spa services must be performed by medical professional who has a license in New York State. The services include:

1. Facial fillers and Botox injections;
2. Radiofrequency, Infrared and other light-based devices e.g. for skin tightening or hair removal;
3. External lipolysis (heat / ultrasound);
4. Photo pneumatic therapy, etc.

If foreign business owner wants to invest in medical spa business in New York State, registering a consulting company and partnering with licensed medical professionals is a practical solution to bypass the registration. The foreign business owner can enter a nominee shareholder agreement with the professional. Kaizen can refer a New York lawyer specialized in business law to draw up the agreement on how to operate and allocate profits thereafter.

There are several steps to register a Licensed Physician Service Corporation (Professional Corporation/LLC):

1. Prepare a Certificate of Incorporation draft
   
   
2. Obtain the Certificate of Authority from NYSED
   
   New York State Education Law authorizes the NYSED to issue Certificates of Authority to qualified professional service corporations being organized under Section 1503 of the Business Corporation Law. These Certificates certify that the individuals organizing the professional service corporation have met the requirement that they be licensed and currently registered to practice in their respective professions.
   
   
3. Incorporation with New York State Department of State
   
   After received the Certificate of Authority issued by NYSED, you must then submit both documents to the New York State Department of State for incorporation
   
   
4. Activate the status at NYSED
   
   Send the certified copy received from NYDOS to NYSED to activate the professional company status. Once approved, your company’s name will be available on the Office of the Professions website and the process is then complete.

Please note if you will provide any or all of the services licensed under Article 27 of the General Business Law (Cosmetology, Esthetics, Nail Specialty, Natural Hair Styling or Waxing), you are required to obtain a license to own, control or operate an Appearance Enhancement Business in New York State.

Typically, the services performed in a medical spa are not taxable. However, if your spa sells items of tangible personal property to your customers, you must register sales tax ID to collect sales tax on these items. New York State Sales and Use Tax is 4%, The City Sales Tax rate is 4.5%. If the store located in New York City, a total Sales and Use Tax of 8.875%.