Adult entertainment or sex-based entertainment is a highly regulated and very risky field. You need to have an experienced lawyer work closely with you on this starting far in advance of when you open for service and all during the time you run the business. There are many laws involved and many best practices to follow. You will need to know all the things about starting any business and hiring any employees. That is a lot to know. Add to that all the regulations regarding a sex-based business and you have a huge undertaking. Sex-based performances are highly regulated as to what the dancers can and cannot do, and where this can be done. This is far more information than you can be given in this online answer. You should budget significantly for legal help as part of your start-up costs. Expect to have several lawyers on call all during the time you run the business. Such businesses always run into legal troubles.
Answer Applies to: California