Your Med Spa Paperwork Could Cost You the Sale

Hiring is already expensive. Weak contracts, unclear roles, or the wrong worker classification can make it a lot more expensive later.

In this episode, I sit down with Sarah, a healthcare attorney and former med spa owner, to talk about the legal and financial gaps that show up as practices grow. We cover partnership agreements, W-2 vs. 1099 classification, job descriptions, expansion risk, and how poor documentation can hurt enterprise value.

Put It in Writing Before You Need It

Partnerships and employment relationships are easiest when everyone agrees. That's when you should document pay, responsibilities, expectations, and what happens if things change. Job descriptions should also match the work people are actually doing—not a generic template. If the paperwork says one thing and the practice does another, that's where risk starts.

Fix the Legal Cracks Before You Scale

Before you add another location, provider, or partner, check the foundation:

Make sure agreements match the real working relationship

Review W-2 vs. 1099 classification

Update job descriptions as roles change

Confirm payroll and scheduling support the classification

If the first location still runs on workarounds, a second one will multiply the risk.

(00:04:35) Starting without the right paperwork