Coaching legal requirements before signing clients! | Legal Requirements to Coach [here’s why]

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Date:
November 4, 2025

Author:
Valerie Del Grosso

filed in:
Legal Fundamentals, Uncategorized

Think You Don’t Need Legal Protection Yet? Think Again.

If you’ve been telling yourself that you’ll handle the legal side of your coaching business once you have clients, this post is your wake-up call.

In this video, business attorney Valerie Del Grosso shares the most common — and most costly — legal mistakes coaches make before they start coaching anyone. Spoiler: these early moves actually carry some of the highest risk in your entire business.

The Surprising Truth About “No Clients Yet”

Over 700 coaches have gone through Valerie’s free training, Meeting with My Lawyer, and the top reason they delay getting legal protection is simple:

“I’m not ready — I don’t have clients yet.”

But here’s the catch. Before you even coach your first client, you’re already:

  • Collecting personal information through lead magnets or email lists,
  • Building a brand and promoting your offers publicly, and
  • Hiring vendors or contractors to help set things up.

All of those activities come with legal responsibilities. The good news? Setting your foundation now is far easier (and cheaper) than fixing problems later.


The Five Groups Impacted by Every Business Decision

Whether you’re seeing clients or not, your actions as a business owner already affect five key groups:
1️⃣ The Government
2️⃣ The Marketplace
3️⃣ Your Vendors or Team
4️⃣ You
5️⃣ Your Prospects (Future Clients)

Let’s break them down one by one.

1️⃣ The Government: Privacy, Payments, and Promises

Even before you earn a dime, you’re collecting emails, processing payments, and marketing offers — and that means privacy and advertising laws already apply.
Your government expects that you:

  • Clearly disclose how you collect and use personal data,
  • Follow lawful payment practices, and
  • Avoid misleading promises in your marketing.

Pro tip: Grab my free course Legal in a Weekend to get your privacy policy template and learn exactly how to stay compliant before you launch.

2️⃣ You: Protecting Your Personal Assets

Before your first client, your top priority should be separating your personal and business finances.
That’s what a Limited Liability Company (LLC) is for — but simply filing one isn’t enough. You also need to handle your business income and expenses correctly afterward to preserve that protection.

💡 Hot tip: Skip the fancy formation websites. Go straight to your state’s Division of Corporations or Secretary of State website — it’s the same process without the hefty markups.

3️⃣ The Marketplace: Protect Your Brand Name

Choosing your business or program name is one of the most exciting early steps — but also one of the riskiest.

Before you design your logo, print business cards, or launch your website, search your name to make sure it’s not already being used in a similar industry.

If you don’t, you could receive a cease-and-desist letter (and lose the brand identity you’ve been building).

Pro tip: Check both domain availability and federal trademark records. The law assumes you’ve done your homework before using a name — there’s no “I didn’t know” defense.

4️⃣ Vendors and Contractors: Read Their Contracts Carefully

Even if you’re not working with clients yet, you’re probably hiring service providers — for branding, website setup, or tech support.

When you sign their contracts, make sure they specify:

  • When deliverables are due,
  • How communication and revisions work, and
  • What happens if timelines slip or the project stalls.

Missing this clarity is one of the biggest reasons new coaches lose money and momentum early on.

5️⃣ Prospects: Truth in Marketing

Your future clients are already watching your posts, reading your emails, and visiting your website.

That means truth-in-advertising laws apply even before your first sale. You’re allowed to highlight wins and testimonials — but everything must be transparent.

Example: If your testimonial comes from your mom, disclose it!
If you’re quoting a client, make sure you’re clear about what program they were in and what effort they put in.

Your gut check: if you’d have to explain why something is “technically true,” it’s probably misleading.

Start Legally Before You Start Coaching

The earlier you set your legal foundation, the more confidently you’ll grow.

If you’re not yet seeing clients, download the Good Authority eBook — your quick-start guide with the exact checklist Valerie gives to her private legal clients.

If you’re ready for your next (or first) client, watch Meeting with My Lawyer — a free, one-hour training that walks you through what to do before your next client signs.

👉 Get the Good Authority eBook
👉 Watch Meeting with My Lawyer

Before You Go

You’re not waiting for clients — you’re building a business.
And when you handle the legal steps first, you’ll never have to pause your momentum to fix a problem later.

Catch the next video: Secrets of Wealthy Coaches — What I Learned from 10+ Years Inside the Industry.