Costs of Starting a Massage Therapy Business

Self-employment is a gratifying venture that allows you to control not only your business, but your life. This also means that it comes with great responsibility. You are required to track your expenses, pay your taxes and remain current on laws that may affect your business. With that in mind, consider the following costs for starting a massage therapy business.

Education Costs

According to Massage Therapy, all but six states require massage therapists to obtain a license or certification. However, the education required varies quite a bit, from 300 to 750 hours. Natural Healers, a website committed to providing information to prospective massage therapy students, states that tuition for massage therapy costs about $6 to $17 per hour. Education costs may range from about $1,800 to $12,000.

Insurance Costs

There are a number of associations that offer insurance for massage therapists. Massage Exam provides a list of five such organizations along with the coverage offered and their rates. At a minimum, you will need malpractice insurance, as well as general, product and personal liability. For this type of coverage, costs range from $99 to $235. Keep in mind that you may need to purchase additional coverage for a commercial vehicle, property damage (if you will open a studio) or workers compensation insurance. Depending on your marital status, you may need to purchase life and health insurance. These costs will vary greatly, depending on your age, health and personal needs. Look into small business health insurance, which may be significantly cheaper than other types of coverage.

Business Registration Costs

If you intend to operate a home-based business, sole proprietorship may be the business structure for you. However, if you intend to open a studio, work with a partner or hire employees, starting a limited liability company may be a better option, as an LLC protects your personal assets, something business insurance doesn't cover. Business registration costs may be as little as $15 for registering your business name up to $300 for establishing an LLC. Your state may also charge a massage therapy licensing fee. In New Mexico, for example, massage therapists must pay $75 for the application, in Arizona, $250. Rates range from about $75 to $300. You may also be subject to a fee if you intend to open a studio. Again, this may range from $100 to $300.

Website Costs

Whether you open a studio or work from home, purchasing a website is a must for your business. Domains run about $7 per year and web site hosting may start as low as $20 per month. You should also consider investing in a massage therapy accounting software that includes a website. Packages start around $40 per month.

Massage Therapy Equipment, Supplies and Advertising Costs

Some of your equipment, such as the table, you will already have from school. Other equipment needed may include additional tables and massage chairs (both of which start at about $170), décor, marketing materials, linens, pillows, supports, anatomical charts, disposal gloves, herbal therapy supplies, skin care products and stools. With price comparing and utilizing used goods whenever possible, you should be able to keep your equipment costs below $1,500.

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