Technically, modifying any part of the emissions system is illegal, as far as I know. Now, most exhaust companies sell "50-state legal" systems that (apparently) have been certified to not effect the emissions system. However, if you remove the cat, then it most certainly is illegal, since you have defeated a federally-mandated emissions control system.
I don't know how you, as a shop, could protect yourself. Only a lawyer would know something like that.
Ryan