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The only way legal prostitution has a chance of working is by following Canada's example, and Canada simply decriminalized selling sex. Brothels aren't allowed.
So there's nothing to inspect, nothing to license, nothing to tax. Legalized prostitution is nothing more than not atresting women who sell sex.
That is usually referred to decriminalization rather than legalization. I'm not opposed to it, since it is a privacy issue. but I am also open to a regulated situation if decriminalization is found to cause problems.