Do You Need a Lawyer to Start an LLC?
So you're ready to turn your business idea into a reality and have decided that a Limited Liability Company (LLC) is the right structure for you. Now...
4 min read
Selling online courses can be an exhilarating way to monetize your expertise and reach a global audience. Yet as you weigh the DIY route against hiring legal counsel, it’s crucial to understand that skipping professional advice doesn’t mean skipping compliance. Many course creators manage basic legal tasks on their own, but overlooking critical requirements can expose you to disputes, fines, or even takedown orders.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
In this post, you’ll learn how to cover the essentials—from business formation to liability protection—without drafting every clause yourself, plus when bringing in a lawyer makes sense.
Understanding the Legal Basics of Selling Online Courses
Before you hit “publish,” you need to shore up the foundation of your course business. At minimum, every online course platform or website should include the following legal elements:
- Terms of Service: Sets expectations for user conduct, refunds, and account management
- Privacy Policy: Discloses data collection, usage, and third‑party sharing practices
- Intellectual Property: Clarifies who owns the course materials and how students may use them
- Tax Compliance: Ensures you’re collecting and remitting sales tax where required
- Consumer Protection: Covers disclaimers around earnings claims and performance guarantees
Example – Basic Terms of Service Template
Imagine you’ve purchased a template package that includes a generic terms of service. You can adapt it by:
- Replacing placeholder names with your business name and domain
- Defining your specific refund window (e.g., “30-day money-back guarantee”)
- Listing any prohibited student behaviors, such as unauthorized sharing of videos
Pro Tip – Choosing a Reputable Template Source
Look for template providers with clear version histories and state‑specific options. Avoid free downloads from unknown blogs—opt instead for packages that include consultation calls or update alerts.
Setting Up Your Business Structure DIY
Choosing and registering the right business entity not only legitimizes your course platform but also protects your personal assets. Here’s how to tackle it yourself:
- Evaluate Your Risk: If you’re simply sharing educational content, a sole proprietorship might suffice. If you offer high‑value courses ($500+), an LLC can shield your personal savings from lawsuits.
- Check State Requirements: Visit your Secretary of State website to compare fees and filing times. Many states now offer online LLC registration for under $100.
- File Formation Documents: Complete and submit your Articles of Organization (for an LLC) or Certificate of Incorporation (for a corporation). Most states provide fillable PDFs and credit‑card payment portals.
- Obtain an EIN: You’ll need an Employer Identification Number from the IRS for opening a business bank account and handling tax forms.
Example – Registering an LLC on Your State’s Website
Jane runs a photography course and wants LLC protection. She visits her state site, fills in her LLC name and address, pays the $90 filing fee, and receives approval by email within three days—all without hiring an attorney.
Pro Tip – Affordable Online Formation Services to Consider
Platforms like Northwest Registered Agent or Incfile often bundle state filing, operating agreements, and registered agent services for under $200—less than a single hour of attorney time.
Creating Legally Sound Course Content
Your course materials—videos, worksheets, slide decks—must avoid infringing on others’ rights. Follow these steps to stay clear of copyright or trademark claims:
- Audit Your Assets: List every third‑party image, music track, or excerpt you plan to use.
- Obtain Proper Licenses: Purchase royalty‑free images or secure written permission for branded logos.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
- Use Fair Use Carefully: Limit brief quotations (under 300 words) coupled with commentary or critique.
- Document Every License: Keep PDFs or emails organized in a “Licenses” folder for each course module.
Example – Properly Licensing Stock Images
Tom includes five stock photos per lesson. He purchases them from Shutterstock and renames each file with its license ID (e.g., “SS_1234567.jpg”) so he can prove permission if challenged.
Pro Tip – Finding and Attributing Creative Commons Resources
Search for images under CC0 or CC BY licenses on platforms like Unsplash or Flickr. Always include an attribution line (e.g., “Photo by Alex Smith / CC BY 2.0”) on your course resource page.
Drafting Essential Legal Documents Without a Lawyer
You can customize off‑the‑shelf contracts to fit your course business. Focus on these four core documents:
- Payment Terms: Specifies due dates, late fees, and accepted payment methods
- Refund Policy: Defines eligibility, deadlines, and refund procedures
- Disclaimers: Limits liability around earnings projections or professional advice
- Indemnification: Requires students to cover your legal costs if they misuse content
Example – Sample Refund Policy Clause
“All course purchases are eligible for a full refund within 14 days of purchase, provided fewer than 20% of videos have been viewed. To request a refund, email support@yourdomain.com with your order number.”
Pro Tip – Adapting a General Template to Your Niche
Start with a template that matches your industry (e.g., tech courses vs. wellness coaching). Update percentages, viewing thresholds, and support email addresses rather than rewriting every sentence.
Managing Risk and Liability Protection
Even with strong contracts, you’ll need additional safeguards to limit your exposure:
- Disclaimers: Remind students that results vary and you aren’t providing professional medical, legal, or financial advice
- Limitation of Liability: Cap damages to the amount paid for the course
- Insurance: Consider general liability or professional liability policies
- Error‑and‑Omissions Coverage: Protects against claims that your content caused financial loss
Example – Crafting a Simple Limitation of Liability Clause
“In no event shall [Your Business Name] be liable for any indirect, incidental, or consequential damages arising out of or relating to this agreement, regardless of fault.”
Pro Tip – Assessing Whether You Need Professional Insurance
If your course guides clients through high‑stakes decisions (e.g., business formation, tax filing), a $1 million E&O policy may cost under $500 per year and offer peace of mind.
When to Consider Seeking Professional Legal Help
There are times when DIY templates and checklists aren’t enough. Watch for these red flags:
- High Revenue Thresholds: If you exceed $100,000 in course sales per year, customized contracts can prevent costly loopholes
- Complex IP Licensing: Courses built around third‑party products, brands, or technology integrations often require negotiated licenses
- Cross‑Border Sales: Selling to students in the EU or Canada may trigger GDPR or PIPEDA compliance
- Enterprise‑Level Contracts: If you partner with corporations or universities, they’ll expect bespoke agreements
Example – A Complex Licensing Deal That Demands Review
You plan to embed clips from a bestselling author’s webinar series. Even if you secure permission, the author’s publisher may require revenue‑share language and territorial restrictions—details best handled by counsel.
Pro Tip – Sourcing Cost‑Effective Contract Reviews
Platforms like UpCounsel or LawTrades connect you with vetted attorneys who charge hourly rates around $150 for contract revisions—often at half the cost of traditional firms.
Conclusion and Next Steps
Selling online courses without a lawyer is possible when you focus on the essentials: clear policies, proper business formation, and proactive risk management. However, knowing when to upgrade from templates to tailored counsel can save you time and money down the road.
Ready to lock down your legal foundation? Download our free DIY Legal Checklist to ensure you’ve covered every critical step before launch—and turn your expertise into revenue with confidence.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
Do You Need a Lawyer for a Buy-Sell Agreement?
If you own a business with partners, you’ve probably heard of a buy-sell agreement—sometimes called a "business prenup." Simply put, a buy-sell...
Can You Use a Loan Agreement Template Without a Lawyer?
Whether you're lending money to a family member, a friend, or a business associate, having a proper loan agreement in place is crucial for protecting...