As the demand for aesthetic and wellness services continues to rise, we’ve seen a growing number of physicians, nurse practitioners, and entrepreneurs expressing interest in opening medical spas—commonly referred to as medspas—in New Jersey and New York. And it’s easy to see why. The industry sits at the crossroads of medicine, beauty, and business, offering an opportunity to deliver high-value services with strong market potential. But for those considering taking the leap into this space, it’s crucial to understand that medspas aren’t just another business—they are medical entities first, and the legal landscape surrounding them is complex.

At our firm, we work closely with healthcare professionals to help them launch and scale successful ventures, and we’ve learned that starting a medspa requires more than just a business plan and a list of services. It takes careful navigation of healthcare laws, regulatory compliance, licensing, and corporate structuring. The decisions made during formation can have lasting consequences—financial, operational, and legal—so it’s worth doing it right from the outset.

One of the most common misconceptions we encounter is the assumption that anyone with the capital can open and operate a medspa. In both New Jersey and New York, that’s not the case. These states strictly regulate who can own and operate medical practices, and medspas fall under that umbrella. Generally, only licensed healthcare professionals—typically physicians—can own and control a medical practice. This is due to what’s known as the Corporate Practice of Medicine (CPOM) doctrine, which prohibits laypersons or non-licensed individuals from exercising control over the professional judgment of licensed providers. Each state has varying degrees of restricitons in its CPOM doctrine which will have dramatic impacts on your formation, management and capital raising activities.

This doesn’t mean non-physicians are excluded from the medspa industry entirely. In many cases, business-savvy individuals can participate by forming a Management Services Organization (MSO) to handle the non-clinical side of the business. The MSO model allows for a legal separation between the medical practice (owned and operated by a licensed provider) and the business functions (such as marketing, payroll, leasing, and administrative support) which can be managed by non-licensed individuals or entities. But establishing this relationship correctly—through carefully drafted contracts like a Management Services Agreement (MSA)—is critical to avoid crossing regulatory lines.

We also often hear questions about the type of legal entity to form. Should you form a Professional Corporation (PC)? A Professional Limited Liability Company (PLLC)? A general LLC? The answer depends on your licensing, your state, and your business model. In New Jersey and New York, licensed professionals are generally required to form PCs or PLLCs to render medical services. For example, if you are a nurse practitioner or physician planning to offer Botox injections, laser treatments, or microneedling, you are likely delivering services considered “medical” in nature, which must be performed under the appropriate license—and through the right type of entity.

Forming the wrong type of business structure—or failing to register with the appropriate licensing boards—can result in delays, denials, or even disciplinary actions. It’s not uncommon for providers to unintentionally run afoul of the rules by offering services beyond their scope of practice, or by entering into arrangements that inadvertently violate CPOM. That’s why we take a hands-on, collaborative approach when guiding clients through the formation process, ensuring that the structure aligns with both their goals and regulatory boundaries.

In addition to corporate structure, licensure and compliance considerations are central to your medspa’s success. Depending on the services you plan to offer, you may need to comply with state oversight from the Board of Medical Examiners, Nursing Boards, or Cosmetology Boards. For example, treatments like laser hair removal or chemical peels may trigger different supervision requirements or delegation rules, which vary between New Jersey and New York. You’ll also want to understand how standing orders, physician supervision, and scope of practice rules affect the delivery of services—especially if you plan to hire other providers like aestheticians or RNs.

Beyond the formation stage, having appropriate compliance protocols in place—such as informed consent processes, medical record retention policies, and HIPAA-compliant practices—is just as important. Patients receiving treatments at a medspa may not always recognize that they are, in fact, undergoing medical procedures, and regulators tend to scrutinize this industry closely. A strong legal foundation not only helps protect your business but also builds credibility and trust with your patients.

Of course, every medspa’s vision is unique. Whether you’re a physician planning to expand into aesthetics, a nurse practitioner building an independent practice, or an entrepreneur looking to partner with a provider, we believe in tailoring legal strategy to the specific business model and professional background of our clients. We don’t believe in one-size-fits-all approaches—because your goals, risks, and opportunities are unique to you.

Ultimately, opening a medspa in New Jersey or New York is an exciting opportunity—but it’s one that should be approached with strategic care and legal insight. With the right structure, compliance framework, and operational support, you can build a practice that is not only legally sound but positioned for long-term growth and impact.

If you’re considering opening a medspa, we’d love to help you take the next step. At The Anderson Firm P.C., we partner with healthcare providers at every stage—from initial formation and licensing to ongoing compliance and business advisory—to help you move forward with clarity and confidence. Let’s build something strong, together.