Prostitution is looked upon as the most popular “dirty” business. The fact of the matter is that there are always going to be women (men for that matter) who are inclined to sell their bodies for sexual pleasure and do not mind doing this. Therefore, I see no reason to condemn this, instead it should be regulated and turned into a legitimate business, eliminating many of the dangers typically associated with it.
People should be allowed to open businesses, similar to a dude ranch, where willing individuals legally sell sexual services. This money can be taxed exactly as other businesses are, and the employees will be routinely tested to ensure good health.
The “whorehouses” would have security guards to insure safety for all participating parties, and other regulations will make the practice as safe as possible. Of course employees must be at least 18, possibly 21.
I think it should be legal and less regulated than you propose. Let the market work this one out. Right now ho’s can only get beat and killed because they are in an underground economy that keeps secrets. If it’s outed, those who hurt the “love consultants” will get reported and face the law.