How to Launch a Professional Coaching Practice

What Is Professional Coaching and Why Is It a Great Career Option?

Professional coaching involves partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential. It can be a powerful tool for individuals and organizations and takes many forms, including leadership, executive, and performance coaching.

The industry has exploded in popularity in recent years, with projected growth from $3.68 billion in 2024 to an impressive $6.62 billion in 2029, driven by several factors, including: 

• Increased awareness of mental health

• A growing demand for personal development

• Heightened stress levels due to modern lifestyles

• The development of corporate wellness programs

• Increased disposable incomes

• A larger emphasis on work-life balance

What makes this career path even better is the low startup costs. You don’t need a fancy physical office, inventory, or a bunch of upfront capital to get up and running. All you need is expertise, a laptop, a solid internet connection, and the right business structure.

What Does It Take to Be a Coach in 2025?

The world of professional coaching has changed dramatically over the last several years. Thanks to video conferencing and professional coaching programs like CoachAccountable and BetterUp, coaches can work with clients across the globe from their home office. Coaching is not just giving advice or telling people what to do. It requires core human qualities like empathy, curiosity, patience, and accountability to be successful. 

To stand out, you’ll want to develop a strong personal brand that helps people understand the value of what you do, specialize in a niche, and continually invest in learning more about ways to support your clients. The best professional coaching services offer clients measurable return on investment (ROI), whether in job promotions, improved performance, or personal satisfaction. So, being results-driven is key to keeping clients and positive referrals. 

Choosing a Business System for Coaching

Even if you’re a solo coach, you’re still running a business, and that business needs to have a system. Here’s a breakdown of the process:

• Choose a legal structure. Forming a limited liability company (LLC) is a solid option for most coaches. It’s affordable, easy to maintain, and protects their personal assets if their business faces legal issues.

• Register your business. You’ll need to file Articles of Organization in your state and apply for an Employer Identification Number (EIN) from the IRS, even if you’re the only employee. 

• Secure your online presence. Buy your domain name as soon as you choose your business name, so no one else takes it. Then lock in your email address and social media handles so clients can find you online.

Understanding how you accept payments, handle taxes, manage client records, and legally protect your work can help you establish the right system.

Legal, Tax, and Insurance Requirements

Let’s talk about the not-so-fun stuff like legal protections, taxes, and insurance. It’s important to get set up correctly in the beginning so you don’t have to deal with legal headaches down the line.

Why LLCs Are a Smart Move

An LLC separates your personal finances from your coaching practice, which keeps you from being personally liable for business debts or lawsuits. It also adds professionalism when working with corporate clients or coaching in regulated industries.

Taxes

Coaches are considered self-employed, so you’ll need to make quarterly estimated tax payments to the IRS. The good news? You can deduct business-related expenses like software subscriptions, home office costs, internet, and travel.

Insurance

Consider professional liability insurance, also called errors and omissions insurance, to protect yourself if a client claims you didn’t deliver on expected results. It’s a smart move for any service-based business.

Legal Templates

Every coach should use a service agreement or coaching contract. Outline expectations like session frequency, payment terms, cancellation policies, confidentiality, and a disclaimer about results, so there are no misunderstandings. 

The Significance of Avoiding Mistakes

Running a professional coaching practice is fulfilling but can also be overwhelming if you skip the foundational steps. Starting with the right tools, legal protections, and business structure can save you time, money, and stress in the long run.

Whether you’re just starting or transitioning from a side hustle to full-time coaching, remember you’re building something meaningful. And when you’re ready to make things official, Bizee can help you form your LLC, register your business, and get the paperwork out of the way so you can focus on your professional coaching services with your clients.

Frequently Asked Questions

What Is Professional Coaching?

Professional coaching is a collaborative process where a coach helps clients achieve personal or professional goals through structured sessions, accountability, and guidance. 

What Types of Professional Coaching Exist?

There are many niches, including executive, life, career, wellness, and performance coaching. Many coaches eventually specialize in one or two areas.

How Much Do Coaches Typically Charge?

Rates vary widely, ranging from $50 per session for new coaches to $500+ per session for certified, experienced coaches. According to the International Coaching Federation (ICF), the average hourly rate is around $244.

How Does Bizee Help with Coaching Business Formation?

Bizee offers step-by-step LLC formation, EIN filing, registered agent services, and tools to keep your coaching business compliant. It’s one of the fastest ways to launch legally and professionally.

Resources:

International Coaching Federation, Global Coaching Study, link.