Do life coaches need a business license?

If you’ve decided to become a life coach, you already know that the life coaching business is far different from other small business professions. As such, you’re probably wondering do life coaches need a business license? First, you don’t necessarily need employees, and second, the structure is also a little different from a retail business.

Regardless of that, a common question new life coaches ask is if they need a business license to practice.

Generally speaking, no, a life coach does not need a business license to practice. However, this can differ from city to city, so it is important to check your local business regulations to ensure that you do not need a license to practice.

Even though you don’t need a business license, you should still name your business and set up your legal entity. If your goals are to become a full-time life coach, it may be the most beneficial to set up your business as an LLC so you have limited liability protection. If you are working as a life coach on the side or taking only a couple of clients a year, then you may want to stick with a sole proprietorship, which is far more common than LLCs in the life coaching industry.

Whether you choose a limited liability corporation or a sole proprietorship, it’s more important to make sure you have the proper certification and experience to work as a life coach.A life coaching program, such as Coach Training Alliance’s certification programs, will help you develop your coaching skills while also teaching you how to run a business effectively and attract the clients you want. Just like getting a business license or starting an LLC, taking a quality training program sets you up to have a successful career as a life coach.

Ready to get started on your coaching path? Take the quiz and find out if it’s right for you!