Key Takeaways
In Texas, the medical side of a med spa must be owned by a licensed physician (an MD or DO) through a professional entity like a PLLC or PA.
Non-physicians can’t own the medical practice, but they can own and run the business through a Management Services Organization (MSO).
Physician assistants can hold a minority stake in the medical entity. Nurses, estheticians, and investors cannot own it directly.
A licensed physician must serve as medical director and control every clinical decision, whoever owns the business.
A licensed physician must serve as medical director and control every clinical decision, whoever owns the business.
Getting the ownership structure right from day one keeps you compliant with the Texas Corporate Practice of Medicine doctrine.
Texas isn’t just the second largest state in the US. It’s also one of the country’s busiest markets for aesthetics, home to thousands of med spas.
But before you sign a lease and stock up on Botox, one question decides how you structure everything else: who can legally own a med spa in Texas?
The short answer is that the medical side of the business has to be owned by a licensed physician. That single rule shapes your ownership structure, who makes clinical decisions, and how a non-physician can still build and profit from the business.
This guide breaks down who can legally own a med spa in Texas, what the law requires, and how the ownership structure works in practice. That way, you can set the business up right the first time.
Who can own a med spa in Texas?
Under Texas law, only a licensed physician can own the medical side of a med spa.
Physician assistants can hold a minority stake in the medical practice, but a licensed physician must keep majority ownership and control. Nurses, estheticians, and non-medical investors can’t own the medical practice directly — they take part through a Management Services Organization (MSO) instead.
Licensed physicians
Regulations for med spa ownership vary from state to state. But the general rule is the same almost everywhere: only licensed physicians can own a med spa or supervise the medical services it provides.
This is to protect patients and ensure that care meets the highest standards.
While physicians may not personally perform every treatment, having qualified medical professionals is important so they can oversee who does.
This means that a licensed physician has several responsibilities to juggle daily.
- Supervise all medical procedures so they’re performed according to the highest standards of care
- Stay compliant with the state laws
- Obtain the necessary licenses for the med spa to operate legally
Management Services Organizations (MSO)
A Management Services Organization, or MSO, is a separate business that handles the operational and administrative side of a med spa — scheduling, marketing, billing, hiring non-clinical staff, equipment, and premises.
This is how non-physicians legally take part in a Texas med spa. The structure uses two entities: a physician-owned professional entity that owns the medical practice, and a non-physician-owned MSO that runs the business side, under Texas’s licensing rules.
A management services agreement (MSA) ties them together, setting out the services the MSO provides and how it’s paid. The physician keeps full control of clinical decisions, and the MSO holds no ownership in the medical practice.
💡The only way non-physicians can share in a Texas med spa is through an MSO, usually set up as an LLC to protect personal assets. They can profit from the business side — for example by rolling treatments into med spa package ideas that boost revenue — but the medical practice itself stays physician-owned.
What are the legal medical spa requirements in Texas?
Owning a med spa in Texas involves navigating a mix of business and healthcare regulations to ensure compliance. Understanding these key requirements is crucial to launching and opening your practice successfully.
Physician ownership
In Texas, med spas must be owned, or at least co-owned, by a licensed physician. This is because many of the services med spas provide are classified as medical procedures.
To comply with state regulations, Texas med spa ownership must include a licensed physician to perform or oversee these procedures.
Physician supervision
Texas law lets non-physicians own the business side of a med spa, but a licensed physician must manage and oversee the medical work performed each day.
Non-physician owners cannot make medical decisions. The licensed physician who serves as medical director oversees the medical treatments and ensures compliance with state standards.
What license do you need to open a medical spa?
Licensing requirements make sure med spa operations comply with local, state, and federal regulations. A med spa compliance checklist helps keep every permit and license in place so you can operate legally and avoid fines.
The key licensing requirements and permits for opening a med spa include:
- Business license: Ensures compliance with local regulations, including taxes and zoning
- Employer Identification Number (EIN): A nine-digit number the IRS (Internal Revenue Service) uses for tax purposes
- Sales tax license: Required if you sell skincare products, to collect sales tax — otherwise you could face civil penalties, interest, and even felony charges if the unpaid tax is significant
- Fire and health department permits: Confirm compliance with fire safety and sanitation regulations through inspections
- HIPAA compliance: Mandatory for med spas because they handle protected health information (PHI) during medical treatments
- Medical director license: Issued by the Texas Medical Board to ensure oversight of medical procedures
- Liability insurance: Protects against legal claims related to spa services, including negligence or malpractice
Medical spa license Texas: TMB and TDLR rules
Which licenses your med spa needs comes down to the services you offer, and two Texas agencies split the oversight.
- Texas Medical Board (TMB): Any service that counts as the practice of medicine — injectables, laser treatments, medical-grade peels — must run under a Texas-licensed physician. The TMB oversees the physician and the medical practice.
- Texas Department of Licensing and Regulation (TDLR): Cosmetic services like facials and basic skincare need a licensed esthetician working in a TDLR-licensed establishment. To sell esthetician services, the facility needs that establishment license.
A full-service med spa in Texas usually needs both: a physician-led medical practice registered with the TMB, and a TDLR establishment license for the cosmetology side.
Compliance with the Medical Practice Act
The Medical Practice Act (MPA) is a state-specific law designed to protect the public from the unprofessional or unsafe practice of medicine.
It outlines what physicians and healthcare professionals can and cannot do within their scope of practice.
Many med spa treatments — injectables, laser therapy, microneedling, IV therapy — are considered medical procedures and fall under the practice of medicine.
Each US state has its own version of the MPA. In Texas, it’s mandated under the Texas Occupations Code. Here’s how the MPA regulates med spas:
- Licensing: Sets the requirements for who can obtain and maintain a medical license
- Scope of practice: Defines what a licensed physician must perform and what can be delegated to other providers
- Prohibition of unauthorized practice: Forbids non-licensed individuals from performing medical procedures
Employee qualifications
Most med spas employ several kinds of healthcare professionals. Alongside licensed physicians, there are nurse practitioners (NPs), physician assistants (PAs), registered nurses, and estheticians.
Take nurses as an example. They must be licensed to perform medical treatments such as injecting Botox, microneedling, or chemical peels. Their nursing license confirms they have the skills to practice safely.
To become licensed, nurses must:
- Graduate from an accredited nursing school
- Pass the NCLEX-RN exam
- Work under a licensed physician’s delegation and written protocols to administer treatments such as Botox
- Complete an application along with a background check
Can estheticians do microneedling in Texas?
Estheticians are central to most med spas, but their scope of practice has clear limits. In Texas, a TDLR-licensed esthetician can perform cosmetic microneedling that works only on the surface of the skin.
Once the treatment goes deeper, or uses prescription serums or platelet-rich plasma (PRP), it becomes a medical procedure. Then it has to be delegated and supervised by the medical director. The same line applies to Botox, dermal fillers, and laser treatments — estheticians can’t perform or own these medical services.
Patient consent, privacy, and security
Obtaining informed consent can feel repetitive, but it’s crucial for your med spa’s success and to protect patients. It ensures they fully understand the treatment’s benefits, risks, and outcomes.
It also confirms their personal and medical information is handled securely, in compliance with HIPAA regulations. To meet HIPAA standards, med spas should:
- Implement strong data encryption: To protect patient information
- Set strict access controls: To limit who can view sensitive data
- Regularly back up data: To support disaster recovery
- Keep audit logs: To track who accesses patient information and what actions are taken
Record keeping
Running a med spa means collecting and storing personal information, known as protected health information (PHI) in HIPAA terms. That data must be kept safe and secure at all times.
Regulations like HIPAA impose strict measures on medical businesses to protect patient data. Patients have entrusted you with their information and expect you to keep it safe.
Poor record-keeping can have serious consequences for both the patient and the med spa. Some of the biggest risks are:
- Treating a patient with a treatment or product they’re allergic to
- Not being aware of other medication they may be taking
- Failing to meet consent and compliance audit requirements
- A costly data breach of confidential medical information
- Loss of patient trust and lasting reputation damage
Business structures for med spa owners
Med spas are treated as medical practices, so med spa owners have to satisfy both general business rules and Texas’s medical regulations.
Here’s how the ownership usually gets structured:
- For physicians: The medical practice is set up as a professional association (PA) or professional limited liability company (PLLC), which lets the physician run the business while limiting personal liability.
- For non-physicians: They own a separate management company — an LLC-based MSO — that partners with a physician-owned practice under a management services agreement. The physician stays responsible for all medical treatments and compliance.
Who regulates med spas in Texas?
Several regulatory bodies apply to med spa businesses in Texas.
Here are the most prominent ones:
- TMB (Texas Medical Board): Regulates the practice of medicine, including procedures commonly performed in med spas, such as administering dermal fillers and Botox.
- TDLR (Texas Department of Licensing and Regulation): Issues licenses for estheticians, cosmetologists, and laser hair removal, and inspects facilities for safety and licensing compliance.
- DSHS (Texas Department of State Health Services): Regulates public health and safety, including infection control, waste disposal, and tanning and permanent makeup services.
- Federal agencies (FDA and DEA): The FDA regulates the devices and injectables used in treatments, while the DEA covers any controlled substances the practice handles.
💡To stay off the regulatory radar, med spas must comply with Texas’ Corporate Practice of Medicine doctrine, known as CPOM. CPOM keeps medical decision-making in the hands of licensed physicians, free from corporate or financial influence.
Frequently asked questions
How to start a med spa in Texas?
Start by locking in the ownership structure: the medical practice must be physician-owned, with non-physicians taking part through an MSO. From there, work through the medical spa requirements — TMB and TDLR licensing, a medical director, HIPAA-compliant systems, and the right business entity — before you hire, fit out a space, and launch.
Can a non-physician own a med spa in Texas?
Not the medical side. A non-physician can’t own the medical practice, but they can own and run the business through a Management Services Organization (MSO) that partners with a physician-owned practice.
Can a nurse open a med spa in Texas?
A nurse can help run and profit from a med spa through an MSO, but they can’t own the medical practice itself. Only a licensed physician can own that, with physician assistants able to hold a minority stake.
Opening a med spa in Texas? Find out how Pabau can help
After reading all this, you might think: there’s a lot to consider before I open my med spa. But you don’t have to do it alone.
Practice management software like Pabau simplifies opening a medical spa by pulling the tools every med spa needs into one place, so you can:
- Manage patient records safely and securely
- Streamline appointment scheduling and online booking
- Send out intake forms automatically before every appointment
- Store patient data, medical history, treatment records, and before-and-after photos while meeting HIPAA regulations
- Build patient acquisition strategies that keep your books full
Ready to take the plunge? Book a demo today and see how you can smoothly run your med spa in Texas with Pabau.