Get help starting your skincare business

What are the Legal Requirements for Starting a Skincare Business?

Legal requirements will depend on your location and type of business. The U.S. Food and Drug Administration (FDA) regulates skincare products, so if you’re making your products from scratch, you need to be sure your products are safe and live up to their claims. 

This includes making sure your labeling and packaging is honest. All color additives used in your products need to be approved for the intended use. You’re not required to test your products and ingredients, but you still need to make sure they’re safe. For example, if you’re planning to start an organic skin care line, you should check the U.S. Department of Agriculture (USDA) requirements. Any products that fall into this category must follow both FDA regulations for safety and USDA laws for the organic claim. You cannot use the term “organic” unless at least 95 percent of the ingredients you use in your lip gloss are organic. 

If you sell private label skincare products or existing brands produced in the U.S., those products should have already been approved by the FDA. 

How Do I Register My Skincare Business?

Decide how you want to register your business. Popular options include a limited liability company (LLC), a partnership or sole proprietorship. You could start with an LLC and change it to an “S” business enterprise or a “C” company later. That way, you can compete with big industry brands and grow your production.

Next, get a trade name certificate. If you’re going to create your own line of skincare products, contact the FDA to find out what licenses you need. Whether you sell online or in a store, a business permit may be necessary depending on the laws in your state. You also need to apply for an Employer Identification Number (EIN) if you hire employees. Even if you don’t hire employees, it may make sense to get an EIN. It’s free and easy to get online through the IRS. If you operate your business from a store, you will also need to get property and liability insurance. 

How Do I Make a Business Plan and Promote My Skincare Business?

Your business plan and marketing strategy will be based on how you decide to sell your products. 

ONLINE 

Your costs will typically be lower if you sell your products online exclusively. You’ll most likely want to create a professional-looking website that is easy to navigate. There are lots of inexpensive programs that are easy to use, such as Wix, Shopify and Squarespace. Create simple, but engaging descriptions of your skincare products and show high-resolution photos of your products. If you can afford it, hire someone to shoot photos of models wearing your skincare products. Set up social media accounts and start posting with the goal of building a following. Make sure to link mentions on your social media accounts back to your website.  

STOREFRONT

If you decide to open a store, think about the set-up costs, such as displays, decor, and testers, as well as rent, utilities, and employees. You will also need to focus on ways to advertise your business. Even if you open a brick-and-mortar store, it’s a good idea to have a website and promote your product on social media. Consider getting involved with your local community and business organizations, and don't be afraid to collaborate with other nearby businesses to help cross-promote your products and services.

One of the best things you can do to help start or grow your own skin care line is sign up at skysthelimit.org to get access to business mentors, tools and other support you need.