Blog clarity
Do Therapists Who Coach Really Need Two Businesses? It Depends.

There’s a lot of noise online warning therapists to always separate their therapy and coaching services into two businesses—complete with separate LLCs, websites, bank accounts, and brands. While that may be a helpful path for some, it’s not a universal requirement—and in some cases, it’s unnecessary.

In my blog post, I unpack the real considerations behind this common advice. I’ve worked for years at the intersection of psychotherapy, coaching, and spiritual consultation, and what I’ve learned is this: the question isn’t “Do I need two businesses?” The real question is, “What structure best supports clarity, ethics, and transparency in my work?”

Here’s the short version:

  • You might need two entities if you’re operating under a PLLC (Professional LLC), which limits services to your licensed profession;
  • Or if you’re a HIPAA-covered entity (typically because you bill insurance), and you don’t want HIPAA to apply to your coaching practice.

But in many states, if you operate under a standard LLC and don’t bill insurance, it may be perfectly ethical and legal to house your services under one umbrella—as long as your documentation is clear and you’re not crossing clinical lines.

The real key? Informed consent and scope clarity. Your clients should always know what service they’re receiving—therapy, coaching, or consultation—and what protections or limitations come with that. Strong agreements and clear language matter far more than whether your URLs or bank accounts are different.

I also address whether you can reference your clinical background when coaching (spoiler: yes, with clarity), and why terms like “privileged communication” and HIPAA shouldn’t be glossed over in your client materials.

This is a conversation that deserves nuance—not fear-based rules. I hope my post helps you feel empowered to choose the model that best honors your training, ethics, and the work you're truly called to do.

Read more…

Dr. DeeAnna Merz Nagel teaches self-directed coaching courses at ILCT and is a licensed psychotherapist and certified coach. She is the author of several books and offers a wide range of online courses and certifications. https://deeannamerznagel.com.