Demand for tattoos in Australia has been driven by rapid advancements in laser-removal technologies and an increase in legislation surrounding tattoo and body-piercing studios, allowing consumers to be more confident about the safety and hygiene conditions in the industry. If you are looking to open up your tattoo studio, you may wish to consider which business structure you will use. It is important that you are confident of the business structure you choose, as it will determine the way in which your business operates. You will need to have a business plan in place for your tattoo artist business before deciding upon which structure will work best for you. As such, having a basic understanding of a range of structures available to your business will hold you in good stead.

Setting Up Shop as a Sole Trader

A sole trader business structure will provide you with total control over the way your tattoo business is run. However, as a sole trader you would also incur all the financial and legal liability of your business. Australian law does not distinguish between a sole trader and the person who runs the business, which provides many benefits. The first of which is that any profits made by your tattoo artist business will go straight into your pocket. This will allow you to maintain a healthy work life balance, by choosing to put money back into your tattoo artist business or spend it on the things you need in life outside of work.

Nevertheless, the lack of protection from financial liability is a significant drawback for some business owners, as any business decision will have an impact upon your entire life, not just your business. Consequently, if you were to choose a sole trader structure for your tattoo artist business. Therefore, it will be important to have a business plan in place for years in advance in order to protect your personal finances.

Setting up a Tattoo Company

The Tattoo Studios industry is highly fragmented, with a large number of small players servicing the market. However, you may choose to set up a tattoo studio as a company. A company business structure can be good for your tattoo artist business if you are looking to grow quickly and hire employees. However, setting up a company will require you to have capital to invest in the setting up of the company.

The main benefit of a company business structure is that the company is an entity unto itself. This structure means that all the financial and legal obligations are taken on by the company will be separated at law from you the person. As a result, as the director of a company you will be able to take risks that that you may not take on should you choose an alternate business structure. Because the directors of a company are generally free of liability for its financial debts, there are stringent requirements at law in relation to how the company is set up and run in Australia.

Key Takeaways

If you are looking to start your own tattoo artist business or expand your already existing tattoo artist business, you may wish to consider which business structure you will use. In addition to setting up the business structure, you need to ensure your tattoo studio follows the tattooing and body piercing regulations under the Public Health Act 1997. The legislation states that all practitioners must be trained in various procedures to ensure that they comply with the Act. Our business lawyers can help you set up your tattoo parlour as well as any health regulations you must follow.

Adi Snir
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