Contents
If you’re considering entering the body art industry and want to set up a professional tattoo parlour in Australia, you’ve come to the right place. Starting a tattoo parlour requires more than just artistic talent – it demands a solid understanding of the legal requirements involved in launching and operating your business. In this guide, we’ll take you through the essential legal steps you need to consider before opening your doors so that you can focus on your creative work while staying compliant with all regulatory obligations.
Selecting Your Business Structure
One of the very first decisions you’ll need to make when starting a tattoo parlour is choosing the right business structure. This decision will impact your tax obligations, personal liability, and even funding opportunities. The most common structures in Australia are:
Sole Trader
Operating as a sole trader is the simplest way to enter the market. You only need to register for an Australian Business Number (ABN) – information and applications are available on the Australian Business Register. However, it’s important to remember that as a sole trader, you bear personal liability for any business debts and obligations.
Company
In contrast, forming a company creates a separate legal entity. This means that your personal assets are generally protected in the event of business financial issues. Setting up a company does involve more obligations, including regular reporting to the Australian Securities & Investments Commission (ASIC) and higher compliance requirements. If you’re weighing your options, check out our guide on sole trader vs company to help you decide what’s best for your tattoo parlour business.
Regardless of your chosen structure, you should consider obtaining advice on managing your business’s legal and tax affairs. Our experts are are happy to help with the legal side.
Obtaining the Appropriate Licences
Before you can start tattooing clients in your parlour, you must secure the necessary licences to operate legally. There are two critical licences you need:
Tattooist Licence
This licence is mandatory for anyone who performs tattooing services. It permits you to carry out body art for compensation and ensures you have met health, hygiene, and professional practice requirements. Requirements for a tattooist licence vary between states and territories. Be sure to check your local government’s guidelines – for example, the NSW Health website provides detailed information if you plan to operate in New South Wales.
Tattoo Parlour Operator Licence
Even if you are both the owner and the tattooist, you must apply for a separate operator licence to run the parlour at any location – whether it’s a commercial space or a home-based studio. If you plan on operating multiple locations, remember that a licence is required for each site. Compliance with these licensing regimes is not only a regulatory requirement but also an essential component for maintaining high standards of hygiene and client safety in your business.
Legal Compliance and Record Keeping
Once your business structure is in place and you’ve obtained the necessary licences, ensuring ongoing legal compliance becomes a priority. Your tattoo parlour must adhere to a range of health and safety standards as well as consumer protection laws. Maintaining accurate records, securing client informed consent, and ensuring high sanitation standards are central to operating safely and legally.
Failure to meet these standards can result in hefty penalties. For instance, operating without the required licences can lead to fines – in NSW the maximum penalty for a first offence is approximately $5,500 for individuals and up to $11,000 for a corporation, with even stiffer penalties for repeated offences. Staying on top of compliance not only protects your business but also builds trust with your clientele.
Additional Legal Considerations for Your Tattoo Parlour
Protecting Your Designs and Branding
In the tattoo industry, your designs and brand identity are among your most valuable assets. Protecting your intellectual property is vital to prevent others from copying your work. Consider registering your trademarks to safeguard your business name, logo, and unique design elements. Our article on trade marks: what and why can provide you with the details on how to effectively secure your brand.
Employment and Contractor Considerations
If you decide to expand your tattoo parlour by hiring employees or engaging independent contractors, you must comply with employment law and industrial agreements. Drafting clear employment contracts and contractor agreements can help manage your business risks while outlining expectations and responsibilities.
Handling Client Data Securely
Running a modern tattoo parlour often involves managing an online booking system or a customer database. Protecting client information is not just a matter of good business practice – it’s a legal requirement under the Australian Privacy Principles. Ensuring that you have a secure process for data collection, storage, and retrieval will help you avoid privacy breaches and potential penalties.
Drafting Effective Legal Documents and Contracts
Beyond licences and compliance, having the right set of legal documents is essential for any tattoo parlour. Contracts help to define the relationship between you and your clients, suppliers, and employees. Some of the key documents you should consider include:
- Client Consent Forms: These forms should clearly outline the risks involved in tattooing, ensuring that clients are fully informed before receiving services.
- Service Agreements: Tailor these agreements to specify the scope and limitations of your services, including pricing, appointment policies, and aftercare responsibilities.
- Supplier and Contractor Agreements: If you are outsourcing or purchasing supplies, having a contract in place can safeguard your interests and ensure timely service delivery.
If your tattoo parlour also maintains an online booking platform or website, you should consider updating your website terms and conditions and privacy policy. These documents not only protect your business but also provide clarity and reassurance to your clients about how their data is handled.
General Business Setup Tips for Your Tattoo Parlour
While the legal aspects are paramount to launching your tattoo parlour, don’t overlook the importance of a strong overall business strategy. Here are a few additional tips to help set your business up for success:
- Develop a Detailed Business Plan: Outline your business goals, market strategy, financial projections, and operational processes. A well-crafted plan will help secure funding and guide your day-to-day operations.
- Secure Funding: Whether you’re bootstrapping or looking to raise capital, ensure you have a sound financial strategy in place. This may involve applying for a business loan or seeking private investment.
- Choose the Right Location: The success of a tattoo parlour can be influenced by its location. Consider areas with high foot traffic and a vibrant creative community.
- Invest in Quality Equipment and Supplies: Safety and hygiene are critical in tattooing. Ensure that you invest in professional-grade equipment that complies with industry health standards.
- Market Your Business Effectively: A strong online presence, along with targeted advertising and social media outreach, will help you reach your target audience and build a loyal clientele.
By taking these steps, you can help ensure that your tattoo parlour not only meets its legal obligations but also thrives as a competitive business in the creative industry.
Staying Up to Date with Regulatory Changes
The legal environment is always evolving, particularly in industries like tattooing where health, safety, and consumer protection are critical. It’s important to:
- Regularly review updates from local and state governments regarding licensing and health regulations.
- Consult with legal experts to ensure that your business policies and contracts are up to date.
- Monitor any changes in national legislation that could affect how you operate your tattoo parlour.
Key Takeaways
- Choosing the right business structure – whether as a sole trader or by forming a company – is essential for managing liability and taxation.
- Obtaining a tattooist licence and a tattoo parlour operator licence is mandatory for legal operation and client safety.
- Maintaining compliance with health, safety, and consumer protection laws protects your business from hefty fines and reputational damage.
- Protecting your intellectual property and drafting robust legal documents (such as client consent forms and service agreements) safeguard both your creative work and your business interests.
- Effective employment contracts and secure handling of client data are critical when expanding your team and services.
- A strong business plan, combined with continuous monitoring of legal changes, sets the foundation for a successful and compliant tattoo parlour.
If you would like a consultation on tattoo parlour business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
Meet some of our Business Set Up Lawyers
Get in touch now!
We'll get back to you within 1 business day.
Book in a free consultation with us to discuss your legal needs.