7.1 Establishment Licensing, Exemptions, and Operations

Key Takeaways

  • A nonexempt place of business that offers massage therapy must hold a massage establishment license before operating, and a sexually oriented business is ineligible.
  • The establishment license has a two-year term; the initial and renewal fees are each $200, and a license cannot be transferred to a new owner or location.
  • An establishment may use only properly licensed massage therapists and must keep the prescribed license, work-eligibility, contract, roster, consultation, consent, note, and billing records.
  • When an establishment connects to sleeping or residential quarters, a solid wall or a wall with a solid door locked during business hours must separate the areas; no one may reside in the establishment.
Last updated: September 2026

When the place needs a license

Texas Occupations Code sections 455.151 and 455.155 and Chapter 117, Subchapter G, govern massage establishments. Unless a statutory exemption applies, a person may not own, operate, maintain, or use a place of business that offers massage therapy without a massage establishment license. The credential belongs to the place and owner; it is separate from every individual therapist license. A sexually oriented business is not eligible for a massage establishment license.

The owner applies to TDLR on the prescribed form, pays the fee, supplies the required ownership and criminal-history information, and satisfies fingerprint requirements. A business entity must identify the people who own, control, manage, direct, or materially benefit from it as the application and background-review provisions require. The practical examination rule is simple: forming an LLC or hiring a manager does not hide the natural persons responsible for the establishment.

A new establishment license costs $200, lasts two years, and renews for $200. The license must be displayed prominently where the public can inspect it. The establishment number appears with the establishment's assumed or legal name.

Exempt places

Section 455.155 and section 117.84 exempt specified places from the establishment credential. They include a government-owned place; a qualifying solo practitioner; a place where a listed Texas health professional employs or contracts with an LMT as part of that professional's practice; and a place offering massage for no more than 72 hours in any six-month period as part of a public or charity event whose primary purpose is not massage.

The solo-practitioner exemption is not shorthand for every small business. The therapist practices alone at the place. If a business or assumed name is used, the therapist's full legal name or license number appears each time that name appears in writing and in every advertisement. The exemption removes the separate establishment credential, not the therapist license or practice duties.

Ownership and location changes

An establishment license is not transferable. A buyer obtains a new license before operating. A change in the persons whose ownership or control is material under the rule can require a new application, and TDLR must receive the required advance notice. A move also requires an application and approval for the new location; the old certificate cannot simply be carried to the new address.

When facts change, distinguish an update to department records from a transfer. A change of telephone number is an update. A sale to a new owner or relocation affects the credential itself. The safest examination answer is the one that puts the required application or approval before operation by the new owner or at the new location.

Workers and operational records

Section 117.82 requires an establishment to employ or contract only with people who hold the license required for the massage activity. Before allowing a person to perform regulated work, the establishment obtains and keeps evidence of the person's current massage license and employment eligibility, including the required federal eligibility documentation when the relationship is employment, or the written contract when the person is an independent contractor.

The establishment maintains a current roster of employees and contractors and the associated records available for inspection. It also properly maintains and secures initial consultation documents, session notes, written consents, and related billing records. These duties do not authorize unlicensed students to work as therapists. Student massage occurs only through a licensed school's supervised internship under the student rules, without compensation.

The establishment may not allow sexual contact, nude modeling, or other prohibited conduct. A minor may not be employed without the written consent of a parent or guardian. Individual therapists remain responsible for their own licenses and ethics even when the owner handles scheduling or payment.

Residential separation

If an establishment is connected to sleeping or residential quarters, section 117.82 requires separation by a solid wall or by a wall with a solid door. That connecting door must be locked during business hours. No person may reside in the establishment.

The object of the lock rule is the door connecting the business to the residential or sleeping quarters. It is not a universal rule that every treatment-room door must be locked or unlocked. Nor does Chapter 117 always demand a separate exterior entrance or dedicated restroom. Apply the actual separation provision and any independently applicable building, fire, accessibility, or local rules.

Scenario method

Ask five questions: Is this a place offering massage? Does a stated exemption apply? Is the current owner and location licensed before operation? Are all workers licensed and documented? Do the physical arrangement, records, display, and conduct satisfy the operational rules? Keeping those questions separate prevents a solo exemption from being mistaken for an individual-license exemption and prevents an owner's credential from being mistaken for authority for an unlicensed worker.

Establishment decision checklist

  1. Decide whether the location offers regulated massage and whether a stated exemption applies.
  2. Confirm that the correct owner and location are licensed before operation.
  3. Verify every worker's required license and employment or contract documentation.
  4. Check license display, client and roster records, residential separation, and prohibited conduct.
Test Your Knowledge

Which statement describes a qualifying solo-practitioner exemption?

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Test Your Knowledge

What is required when a licensed massage establishment is sold to a new owner?

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Test Your Knowledge

Which records must an establishment maintain and secure?

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Test Your Knowledge

Which door must be locked during business hours when an establishment connects to residential quarters?

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