for-coaches
Written By Benjamin Miller
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Setting Up Your Business Structure
Virtual vs. On-Site Coaching
Life Coaching in California: FAQs
Does California have any life coach requirements?
Do I need a life coach license or certification for California?
How much do life coaches make in California?
Choosing a Life Coach Certification for California
The Power of Great Marketing for Coaches
If you’re wondering how to become a life coach in California, you’ve come to the right place. CoachRanks is the hub for thousands of coaches seeking information and guidance on how to build their businesses. And today, we’re shining the spotlight on the West Coast.
In this guide, learn all about what is and isn’t required to become a coach in the Golden State. We’ll cover everything from business structures, to certifications, to marketing, and more. By the end of this guide, we hope you’ll have a better grasp on the life coaching landscape in California, as well as a handful of useful resources to continue your learning.
Setting Up Your Business Structure
Before you become a coach in California, you may be wondering what kind of paperwork you’ll need to gather and submit. For many, that means considering some of the basics around business structure.
Two of the most common business structures to consider for coaches include the Sole Proprietorship and the Limited Liability Company (LLC).
Sole Proprietorship
In California (and the US in general), starting a Sole Proprietorship is relatively straightforward. Generally, you don't need to file any specific documents to start a sole proprietorship. If you're conducting business under your own name, you can begin operating as a sole proprietor immediately.
The main administrative considerations for sole proprietors are tied to taxes. Here are a few tax facts to keep in mind if you begin your coaching journey with a sole proprietorship:
Quarterly Tax Payments: If you expect to owe at least $1,000 in federal tax for the year, you typically need to make estimated tax payments to the IRS each quarter. You’ll also owe California state taxes each quarter.
Form 1040: As a sole proprietor, your business income and expenses are reported on your personal tax return using Schedule C (or Schedule C-EZ) of Form 1040. To make this a smooth process come tax season, it's important to keep detailed records of all your business transactions.
Self-Employment Tax: Since sole proprietors are considered self-employed, you'll be responsible for paying self-employment tax (Social Security and Medicare tax) on your business profits. This is addressed when you file your taxes.
To summarize, sole proprietorships are great because they are easy to set up and they give you complete control of your business. On the downside, sole proprietorships don’t offer any liability protection (in contrast to an LLC), meaning your personal assets could be at risk.
Limited Liability Company (LLC)
A Limited Liability Company (LLC) is a hybrid business structure that combines the operational flexibility of a sole proprietorship with the liability protection of a corporation. The primary reason a coach would choose an LLC is the liability protection it offers. The coach's personal assets (like personal bank accounts, homes, and cars) are better protected from business debts and claims. This brings peace of mind that any liability begins and ends with the business.
LLCs also offer more tax flexibility, as you can be taxed as a sole proprietor, partnership, or corporation. For those considering an LLC, it’s probably wise to consult with a tax advisor to fully understand the full suite of benefits in relation to your personal tax situation.
On the downside, LLCs come with more paperwork, administrative overhead, and costs than sole proprietorships.
Ultimately, coaches must evaluate their individual business needs, risk profile, and financial situation to make the right decision about business structure. Some may decide to start as a sole proprietorship (due to its simplicity) and then transition to an LLC or another structure as their business grows. Once again, consulting with legal and tax professionals can provide the clarity to make informed decisions.
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Virtual vs. On-Site Coaching
After landing on a plan for your business structure as a coach in California, you’ll then need to consider the methods by which you deliver your services. While a growing number of coaches operate completely virtually, there may be some benefits to coaching in-person, or pursuing a hybrid approach.
For those considering an in-person practice in California, operating from your place of residence may be an option that raises some questions. If that sounds like you, consider the following:
Home Occupation Permits: Many California cities require a home occupation permit for businesses operated from a residence. You'll need to check with your local city or county's planning or zoning department to determine if you need this permit and if there are any specific regulations.
Zoning Restrictions: Residential areas have zoning laws, which can sometimes restrict certain types of business activities. While coaching is typically low-impact and unlikely to violate zoning rules, it's still important to research for yourself.
HOA or Lease Restrictions: If you live in a community with a Homeowners Association (HOA) or if you rent your home, there may be rules or lease terms that restrict your ability to run a business from home.
Business License: Even if you're operating from home, you might still need a business license from your California city or county.
Note that renting an office space may require less obstacles, as the work above is often the responsibility of a landlord. Of course, renting has the downside of adding an extra cost to your budding coaching practice.
It’s true that a virtual coaching practice may be easier to set up, operate, and manage. But keep in mind that lots of potential clients view coaching as an in-person resource. That means there will always be opportunities for coaches to service their nearby towns and cities.
Life Coaching in California: FAQs
Some common questions arise for those wanting to become a coach in California. To help you out as you get your business sorted, here are some quick answers to your California life coach FAQs. Note that these answers are not legal advice, and California state law is subject to change in ways that could impact these FAQs.
Does California have any life coach requirements?
Beyond standard business structure and tax law, California does not have specific state-mandated requirements for life coaches. This means that individuals can practice as life coaches without obtaining a specific license from the state.
Do I need a life coach license or certification for California?
California does not have a specific state-issued licensing or certification requirement for life coaches. Unlike professions such as therapy or counseling, which have defined licensing requirements, life coaching remains largely unregulated in many states, including California.
How much do life coaches make in California?
Life coaches can expect to make industry-standard rates in California. Many coaches today service a mix of virtual and on-site coaching clients, which means your specific location as a coach is unlikely to affect your earning potential. In 2022, the average annual income for coaches in North America was approximately $67,800. That said, coach earnings range widely, with many earning well into the six figures.
Choosing a Life Coach Certification for California
So there isn’t a mandated life coach certification for California. The question remains: Should you still get certified as a coach?
Coaching certifications bring an extra layer of credibility to your practice. And while they are not always necessary, some coaches see benefit from the support of trusted third-party credentials. Since there are no leading California-based coaching certifications, it’s mostly a question of choosing a credible program. Here are few worth considering:
International Coach Federation (ICF) Certification: As one of the most globally recognized certifying bodies, the ICF offers credentials based on the completion of specific training hours and successful demonstration of coaching competencies.
Institute for Professional Excellence in Coaching (iPEC) Certification: iPEC provides a comprehensive training program that equips coaches with tools and methodologies based on the Core Energy Coaching process, focusing on both personal transformation and coaching mastery.
Co-Active Training Institute (CTI) Program: Renowned for its hands-on approach, CTI emphasizes a Co-Active model that nurtures the whole person and empowers clients to seek fulfilling professional and personal outcomes.
Each of these certifications is held in high regard in the coaching industry and may be worth considering for those wanting to bolster their practice. Read this article for more on the best life coach certifications to boost your credibility.
The Power of Great Marketing for Coaches
Finally, with most of the administrative work out of the way, coaches in any location should think about their marketing and sales funnels. Just because you can become a life coach relatively easily doesn’t mean it’s easy to find and retain coaching clients!
With competent marketing strategies, running a successful coaching business becomes much easier. At CoachRanks, we’ve got you covered. Here are some of our most relevant articles for coaches just getting started or those wanting to learn a little more about marketing:
How to Become a Life Coach (with State-by-State Guides)
A Simple Life Coach Business Plan to Get Your Practice Started
How to Get Coaching Clients: 6 Actionable Ideas That Work
The beautiful thing about marketing for coaches is that you can learn quite a bit in a short amount of time. To accelerate your learning and to get premium marketing advice, become a CoachRanks Insider for free below!
Benjamin Miller
Ben is the founder of CoachRanks and the primary contributor to its blog and newsletter.
