Make Money As A Life Coach: How to Become a Life Coach and Attract Your First Paying Client by Ricker Melissa & Miller Sally

Author:Ricker, Melissa & Miller, Sally [Ricker, Melissa]
Language: eng
Format: epub
Published: 2017-07-05T16:00:00+00:00

CHAPTER 7

Cover Yourself Legally

Melissa Ricker

Before you sign your first client, there is one thing you absolutely must do. You must cover yourself legally. This isn’t my favorite step to write about, but it is an essential one as a coach. I’ll keep it short and sweet. And don’t worry, this doesn’t have to be complex.

When I first started out, I actually skipped this step. Looking back, I’m fortunate that nothing came from that bad decision. However, I have spoken with a fellow coach who was not so fortunate. She was sued by a client and ended up losing a lot of money because she made the mistake of not taking a few legal steps. You don’t want to fall into that trap.

I’m not a lawyer by any means, so please do your own research and speak to an attorney to make the decision that best suits you and your business.

Business Considerations

Depending on where you live, you’ll probably have to establish yourself with the government so that you can pay taxes on your earnings and write off business expenses. There are a couple of common ways to do this.

Most coaches start out as either a sole proprietor or a limited liability corporation .

> Sole Proprietor – This is the easiest, fastest, and cheapest way to start running your business. This option is often chosen when coaches first start their business, and that is totally acceptable especially until you validate that this is what you really want. Setting up your business as a sole proprietor is simple, but the downside is that you have no liability protection. If someone sues you and wins, they could have access to all your assets including your personal assets not related to your business.

> Limited Liability Corporation (LLC) – An LLC has the benefit of liability. If someone were to sue you and win, that person would generally be limited to the assets of the LLC. He or she would not be able to access your personal assets such as your car or home. The downside to an LLC is that you have to pay fees and fill out paperwork to file.

When I first started my coaching business, I filed as a sole proprietor. Now that I have established myself and am picking up steam, I am starting the paperwork to file for an LLC. That is my personal path, and it has worked well for me.

Legal Forms and Waivers

Coaching is not therapy or medical treatment, but your clients may not be aware of this fact. You do not diagnose or treat people medically. It is in your best interest to provide a written disclosure to ensure your clients are on the same page as you.

You also want to lay out an agreement of your services based on the coaching package your client has chosen. Be specific on payment terms, refund policies, and what happens if your client is late or misses an appointment. This will alleviate any headaches you may experience down the line when one of your clients misses payment or misses an appointment.

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