There are many aspects to legally protect yourself and your wellness business. We are going to share some tips to help you navigate the legal world of starting a business. However, we are not lawyers and no part of this blog should be taken as professional legal advice.
When taking steps to classify your business or write up client contracts, it’s best to consult with an attorney. Again, the information in this blog should not be construed as legal advice.
So with the disclaimer out of the way, let’s jump straight into how to legally protect yourself and your wellness business.
There are several items you will need to check off, but in this blog, we’d like to narrow it down to discuss the difference between a Sole Proprietorship vs. an LLC, what the heck a DBA is and if you need one, and key items you’d want to consider placing in your contract.
A sole proprietorship is when you, the business owner, are self-employed and pay personal taxes on profits earned from the business.
There is no legal registered business name used or separation between you and your business.
A sole proprietorship is easy to establish and dissolve if necessary.
This is a great option for small businesses, but as you scale restructuring to an LLC might be an option to look into.
A Limited Liability Company (LLC) is a business structure that essentially protects your personal assets from any liability claims against your business. That means if for whatever reason your business is sued, personal assets like your home, car, savings, etc. are protected.
You will need to register your business in the State that you’re operating in. There is a registration and annual fee that ranges from $50 to $300 depending on the State.
It’s important to really do your research and see which business structure applies to your business. And honestly, speaking with an experienced attorney can help you feel much better about this whole process.
Our BBC guest legal expert, Lisa Fraley, provides training in BBC clarifying all the details of legally protecting you and your wellness business.
A DBA or “doing business as” is required if your legal business name is different from the business name that you actually use in your branding and website.
For example, if we have Building Better Business School, LLC, but we use Building Better Collective as our business name in our branding and website we’d need to file a fictitious business name in the state and county we operate out of.
Having a well-drafted, clear, and concise contract is super important in order to protect yourself as well as your client or patient.
These are some key items you might consider drafting into your contract:
It’s also a good idea to go over the contract with your client or patient and make sure they fully understand the agreement between both parties.
We are reiterating this again, but the suggestions provided should not be taken as legal advice and it’s always best to speak with an experienced attorney.
We know starting and growing a wellness business can be overwhelming. We also know that when you have the support and resources needed to get going, the tasks ahead of you will be more manageable.
Building Better Collective isn’t just about joining a community of strong female entrepreneurs like you. I mean yes, our community is beyond great and supportive. But we also want to help you build your dream business. Because you deserve this!
We are here to support you, help your business grow, and guide you through the ups and downs of running your own wellness business. Have more questions? Connect with us on Instagram and send us a DM @buildingbettercollective.