Massage Therapy Business: Licensing, Planning, and Insurance Essentials

Certification

A credential obtained by completing a certification course, usually in a school setting.

License

A jurisdictional requirement used to regulate the practice of massage therapy.

Reciprocity

The ability for a massage license in one jurisdiction to be recognized as valid in another jurisdiction.

Business Plan

A document prepared to state the objectives of a future business and its means of achieving them.

Mission Statement

A statement that defines the overall objective and values of the business.

Financial Planning

Used to state long-term objectives in regards to money.

Market Analysis

Utilized to assess a market, helping determine customer volume, money spent in specific locations, and competition.

Accounts Receivable

When money is owed to a business, such as credit or debt from a vendor.

Accounts Payable

When the business owes money to another company.

Taxpayer Identification Numbers (TINs)

Used to identify a taxpayer to the IRS and courts in legal proceedings.

Social Security Numbers

Issued by the Social Security Administration, used to record wages and self-employment earnings for collecting benefits.

Employer Identification Number (EIN)

Used to identify a business entity in tax-related documents, such as a W-2.

Individual Taxpayer Identity Numbers (ITINs)

Numbers given to people who cannot obtain a social security number, such as nonresidents and dependents.

General Liability Insurance

Protects the massage therapist in cases such as accidental falls by the client that result in bodily injury.

Professional Liability Insurance

Protects the therapist from lawsuits regarding malpractice or negligence.

Independent Contractor

A massage therapist that works independently but contracts with another person or company to perform work.

Sole Proprietor

A business owned by one person.

Partnership

A business owned by two or more people.

S Corporations

Corporations that pass income and taxes onto the shareholders.