Starting a Spa

Legal Considerations in Order to Start Spa

Legal Considerations in Order to Start Spa

Introduction

Spa is a health facility offering treatments, therapies or relaxation systems, using water as the main base. There is no true origin of the word "spa". Some people attribute it to Belgium in Spa, known in Roman times for its thermal baths, while others speculate that comes from the acronym in Latin of the phrase ”health through the water.” With the advent of 21st century, there is a considerable increase of spa businesses throughout the world (Bass 2006). However, starting a spa business has been a difficult area for new entrepreneurs. Starting a business can be a rewarding undertaking, but it comes with its challenges. Therefore, before starting a business in United States or Australia, it is wise to do research and make sure you have the entrepreneurial spirit, and understand that business can claim considerable effort. So you should thoroughly enjoy the activity you are getting into and you must have confidence in the product or service you offer as it may take up most of your time, especially during the phase of departure (Tezak & Folawn 2012). There are several aspects to entrepreneurship that you need to consider such as legal and operational regulations, financing, taxation, business management, advertising and much more. 

Types of Business

The choice of the form that best suits your business depends on several factors including the type of business, the number of people associated with the company, the amount of control you want in the business, the extent of responsibilities for others, your capital requirements, the tax laws and regulations and liability for the debts of the company. Unless your business structure is very simple, you need to consult a lawyer regarding legal matters and an accountant for the financial implications of your project. There are three legal forms of business organization for spa businesses:

Sole Proprietorship

A sole proprietorship is a business in which a single person assumes the management and operations of the business. This is the simplest, most economical and easiest business form, making it a particularly interesting type of organization for small businesses (Sifleet & Thompson 2009). All you have to do is to register the name of your company to obtain a license and authorization of municipal zoning officials. However, the status of a sole proprietorship has some disadvantages, such as:

From a legal standpoint, the company and you are one. The company is dissolved at the time of your death.

You are responsible for everything that has to do with the company, whether the management and daily operation of the funding.

As the owner of the assets of the company, you must report your business income and deduct your business expenses on your tax incomes. It is also possible that you may be subject to tax rates higher than those of corporations, by level of income.

You are personally liable for all debts of the company. For example, if bills remain unpaid, your personal assets like your home or car may be seized if legal action is ...