{"id":41693,"date":"2021-07-30T06:51:21","date_gmt":"2021-07-30T13:51:21","guid":{"rendered":"https:\/\/www.goodtherapy.org\/blog\/?p=41693"},"modified":"2026-02-13T19:31:19","modified_gmt":"2026-02-14T00:31:19","slug":"psychotherapy-vs-coaching-whats-the-legal-distinction","status":"publish","type":"post","link":"https:\/\/www.goodtherapy.org\/blog\/Psychotherapy-vs-Coaching-Legal-Distinction","title":{"rendered":"Psychotherapy vs. Coaching: What\u00e2\u20ac\u2122s the Legal Distinction?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-41694 alignleft\" title=\"GoodTherapy | Market Your Therapy Practice\" src=\"https:\/\/www.goodtherapy.org\/blog\/blog\/wp-content\/uploads\/2021\/07\/GettyImages-1210523597-1-800x522.jpg\" alt=\"GoodTherapy | Psychotherapy vs. Coaching: What\u00e2\u20ac\u2122s the Legal Distinction?\" width=\"358\" height=\"234\" srcset=\"https:\/\/www.goodtherapy.org\/blog\/blog\/wp-content\/uploads\/2021\/07\/GettyImages-1210523597-1-800x522.jpg 800w, https:\/\/www.goodtherapy.org\/blog\/blog\/wp-content\/uploads\/2021\/07\/GettyImages-1210523597-1-300x196.jpg 300w, https:\/\/www.goodtherapy.org\/blog\/blog\/wp-content\/uploads\/2021\/07\/GettyImages-1210523597-1-1536x1002.jpg 1536w, https:\/\/www.goodtherapy.org\/blog\/blog\/wp-content\/uploads\/2021\/07\/GettyImages-1210523597-1-2048x1336.jpg 2048w\" sizes=\"auto, (max-width: 358px) 100vw, 358px\" \/><\/p>\n<p>by <a href=\"https:\/\/jacksonllp.com\/?utm_source=goodtherapy.org&amp;utm_medium=referral&amp;utm_campaign=psychotherapy_versus_coaching\" target=\"_blank\" rel=\"noopener\">Connor D. Jackson, JD<\/a><\/p>\n<p><em><span style=\"font-weight: 400;\">Connor D. Jackson is a healthcare attorney based in Chicago who serves independent practices in several states. Visit his <a href=\"https:\/\/jacksonllp.com\/?utm_source=goodtherapy.org&amp;utm_medium=referral&amp;utm_campaign=psychotherapy_versus_coaching\" target=\"_blank\" rel=\"noopener\">firm\u00e2\u20ac\u2122s website here<\/a>.<\/span><\/em><\/p>\n<h1><span style=\"font-weight: 400;\">Psychotherapy vs. Coaching: What\u00e2\u20ac\u2122s the Legal Distinction?<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Therapists have the education, license, and clinical training required to prepare them for their day-to-day work with clients. But those things also come with restrictions: licenses are usually state-specific, and each state\u00e2\u20ac\u2122s laws set forth a therapist\u00e2\u20ac\u2122s legal responsibilities (like mandatory reporting). This leaves some therapists eyeing the \u00e2\u20ac\u0153coaching\u00e2\u20ac\u009d industry and profession with envy and asking, \u00e2\u20ac\u0153Why don\u00e2\u20ac\u2122t the same rules apply?\u00e2\u20ac\u009d<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Therapy and coaching are very different things.<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Or at least they <\/span><i><span style=\"font-weight: 400;\">should<\/span><\/i><span style=\"font-weight: 400;\"> be very different things! Therapists are healthcare providers, while coaches are not. While every state requires therapists to be licensed, no state regulates or licenses coaches. Due to the lack of license requirements, coaches do not necessarily have\u00c2\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Appropriate training or education<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Oversight by a regulatory body<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Obligation to comply with HIPAA<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mandatory reporting requirements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Clinical experience<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A coach is not a healthcare professional and cannot do work that infringes on a therapist\u00e2\u20ac\u2122s legal scope of practice.\u00c2\u00a0 Under the law, coaches cannot do any of the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bill their services to health insurance companies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offer the breadth of care and services provided by therapists.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Diagnose or treat mental health conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Describe their services using any of the terms that the law protects for licensed professionals.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Any coach who delivers services that mirror the scope of practice of a licensed psychotherapist <\/span><a href=\"https:\/\/www.deseret.com\/2007\/11\/20\/20054561\/therapy-coach-facing-charges-in-utah-county\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">risks felony charges<\/span><\/a><span style=\"font-weight: 400;\">.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Illinois, for example, regulatory authorities have sanctioned unlicensed persons who step into the realm of licensed mental health care. The following examples are from <\/span><span style=\"font-weight: 400;\">disciplinary reports from IDFPF<\/span><span style=\"font-weight: 400;\"> (Illinois Department of Financial and Professional Regulation):<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An unlicensed person was penalized for practicing medicine without a license because she owned a business that offered psychiatry services \u00e2\u20ac\u201d even though she performed only administrative duties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An unlicensed person practiced licensed clinical social work for a decade and billed his services to insurance under a licensed provider\u00e2\u20ac\u2122s credentials.\u00c2\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An unlicensed person who used the term \u00e2\u20ac\u0153social worker\u00e2\u20ac\u009d was fined and sanctioned for engaging in the unlicensed practice of social work.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A therapist who billed an unlicensed person\u00e2\u20ac\u2122s services to insurance was sanctioned for aiding and abetting the unlicensed practice of social work.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Other states have been similarly strict. For instance, Oregon found that a woman\u00e2\u20ac\u2122s \u00e2\u20ac\u0153coaching\u00e2\u20ac\u009d services were professional counseling services and <\/span><span style=\"font-weight: 400;\">sanctioned her.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Protected Language<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In many states, licensed providers have protected language. In other words, people who do <\/span><i><span style=\"font-weight: 400;\">not<\/span><\/i><span style=\"font-weight: 400;\"> hold that same license are not legally allowed to use certain words to promote or describe their services.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In California, for example, LMFTs\u00e2\u20ac\u2122 practice act says:<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u00e2\u20ac\u0153No person may engage in the practice of marriage and family therapy&#8230; unless he or she holds a valid license as a marriage and family therapist\u00e2\u20ac\u00a6 nor may any person advertise himself or herself as performing the services of a marriage, family, child, domestic, or marital consultant, or in any way use these or any similar titles, including the letters \u00e2\u20ac\u0153L.M.F.T.\u00e2\u20ac\u009d \u00e2\u20ac\u0153M.F.T,\u00e2\u20ac\u009d or \u00e2\u20ac\u0153M.F.C.C,\u00e2\u20ac\u009d or other name, word initial, or symbol in connection with or following his or her name to imply that he or she performs these services without a license as provided by this chapter.\u00e2\u20ac\u009d (BPC \u00c2\u00a7 4980(b))<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Coaches who use protected words or abbreviations can be penalized for practicing the licensed profession without a license. So even if she\u00e2\u20ac\u2122s never seen a single client, \u00e2\u20ac\u0153Carrie Coach, MFT\u00e2\u20ac\u009d is illegally holding herself out to the public as a marriage and family therapist.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Licenses vs. Certificates<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For patients, a string of letters after a professional\u00e2\u20ac\u2122s name can signal <a href=\"https:\/\/www.goodtherapy.org\/blog\/alphabet-soup-decoding-mental-health-credentials-0916145\">credentials and qualifications<\/a>. But in healthcare, letters mean something specific.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As an example, consider a life coach who works with couples, Jane Jones, CPC, CSC, CHLC. Jane\u00e2\u20ac\u2122s credentials? She\u00e2\u20ac\u2122s a Certified Professional Coach, Certified Sex Coach, and a Certified Health &amp; Life Coach. She obtained all of these certificates from nonaccredited, for-profit businesses, and some of them were non-interactive, online-only programs.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In healthcare, some of the acronyms that Jane is using also mean other things. A CSC may be a licensed nurse who has completed additional training to earn a cardiac surgery certification. And a healthcare practice may require that their administrator be a CPC\u00e2\u20ac\u201dor a certified professional coder trained in medical billing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Imagine that a couple experiencing marital strain rooted in a traumatic event is searching for help. They find a listing for Jane, who has glowing online reviews from those who claim she saved their marriage.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The couple compares Jane\u00e2\u20ac\u2122s online profile with that of Tara Thomas, LCP. Tara is a licensed clinical psychologist with no reviews, as soliciting them from patients violates her practice act. Tara holds a Ph.D. in psychology from an accredited university, and she has significant clinical experience. She has completed all of the requirements to obtain her state license, and she bills her services to insurance. She can also diagnose one partner\u00e2\u20ac\u2122s PTSD, and she protects her records per HIPAA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Jane Jones and Tara Thomas have starkly different experience and qualifications, yet they\u00e2\u20ac\u2122re sometimes \u00e2\u20ac\u0153competing\u00e2\u20ac\u009d for the same clientele. However, it\u00e2\u20ac\u2122s crucial to note that a coach whose work too closely mirrors Tara\u00e2\u20ac\u2122s is likely practicing psychology without a license \u00e2\u20ac\u201d a criminal offense in many states!\u00c2\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Psychotherapists Who Practice as \u00e2\u20ac\u0153Coaches\u00e2\u20ac\u009d<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Licensed psychotherapists may view the grass as greener in the <a href=\"https:\/\/www.goodtherapy.org\/blog\/life-coach-therapist-or-life-coach-who-was-trained-as-therapist-0414174\">coaching industry<\/a>. However, while it may be tempting for therapists to call themselves coaches to avoid regulatory oversight, doing so can create more (not fewer) headaches.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Coaches are subject to the same legal regulations as therapists \u00e2\u20ac\u201d they just have a much harder time satisfying them! Therapists have the credentials, practice acts, and legally articulated role in population health. Meanwhile, coaches\u00e2\u20ac\u2122 conduct isn\u00e2\u20ac\u2122t regulated by any state\u00e2\u20ac\u2122s law, but if they step into any of the areas within the scope of therapists\u00e2\u20ac\u2122 practice, they, too, will face legal consequences.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the end, there are no shortcuts to becoming a healthcare provider.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">This article is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between Jackson LLP Healthcare Attorneys and the reader.<\/span><\/i> <i><span style=\"font-weight: 400;\">It<\/span><\/i> <i><span style=\"font-weight: 400;\">should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.\u00c2\u00a0<\/span><\/i><\/p>\n<blockquote>\n<h3>One key benefit of psychotherapy regulation is fundamentally protective. Both mental health providers and the public benefit from a clear definition of roles and responsibilities in the practice of psychotherapy. A regulatory body can to step in and discipline a therapist who is acting outside their scope of practice; nothing like that exists in the world of coaching. Check out our classic article &#8220;<a href=\"https:\/\/www.goodtherapy.org\/blog\/warning-signs-of-bad-therapy\/\">50 Warning Signs of Questionable Therapy and Counseling<\/a>&#8221; to learn more about behaviors to avoid as a therapist, both regulated and unregulated.<\/h3>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>by Connor D. Jackson, JD Connor D. Jackson is a healthcare attorney based in Chicago who serves independent practices in several states. Visit his firm\u00e2\u20ac\u2122s website here. Psychotherapy vs. Coaching: What\u00e2\u20ac\u2122s the Legal Distinction? Therapists have the education, license, and clinical training required to prepare them for their day-to-day work with clients. But those things [&hellip;]<\/p>\n","protected":false},"author":3168,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_crdt_document":"","_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[627,1509,1899,529,207,159],"tags":[1753,560,579,707,1527,1524],"class_list":["post-41693","post","type-post","status-publish","format-standard","hentry","category-business-of-therapy","category-entrepreneur","category-for-therapists","category-good-therapy-announcements","category-marketing-for-therapists","category-therapy-news","tag-best-practices-for-therapists","tag-coaching","tag-for-therapists","tag-life-coaching","tag-marketing-for-therapists","tag-private-practice-marketing"],"acf":{"author_show":false,"author_name":"","author_role":"","author_avatar":null,"author_profile_url":""},"_links":{"self":[{"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/posts\/41693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/users\/3168"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/comments?post=41693"}],"version-history":[{"count":0,"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/posts\/41693\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/media?parent=41693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/categories?post=41693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goodtherapy.org\/blog\/wp-json\/wp\/v2\/tags?post=41693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}