Hey, I’m Morgan Davis, a business attorney based in Raleigh, North Carolina. I focus on cannabis and wellness. Let’s talk about how to keep your business protected and thriving.

I started Davis Leal five years ago with the big idea of helping healers do what they do best: heal people. When I talk about healers, I mean those in cannabis, medical spas, psychedelics, and spiritual entheogenic practices—what many consider alternative wellness businesses. I don’t work with traditional medical practices; I work with those who often refer to themselves as healers or work in the wellness product space. My goal is to help healers establish stress-free, well-founded businesses that can thrive while they focus on delivering their unique forms of medicine. It’s my way of being a healer while being a lawyer.

Common Questions from Health and Wellness Startups

Over the years, I’ve been asked a lot of questions by startups in this space. Here are the three most common questions and their answers, which I hope will help you start your health and wellness business.

1. Should I Trademark My Brand Now?

Many startups create a beautiful brand around their passion and want to protect it immediately. However, whether you should trademark right away depends on several factors:

• Audience and Reach: Are you an online-only company with a broad following across the United States or even internationally? In that case, a trademark might be beneficial sooner rather than later. But if you’re a localized business, like a yoga studio serving your community, common law protections based on your geographical location may suffice initially.
• Expansion Plans: If you don’t plan to expand beyond your local area in the next few years, investing in a national trademark with the U.S. Patent and Trademark Office might not be necessary immediately. However, if you do plan to expand, reserving a trademark for the future could be a good idea.

2. What Kind of Insurance Do I Need?

The type of insurance you need depends on the services you offer:

• Medical Spa: You’ll need medical malpractice insurance for all practitioners, premises liability, renters insurance if leasing space, general liability insurance, business interruption insurance, and equipment insurance.
• Online Practitioner (e.g., Breathwork): You’ll need general liability coverage and errors and omissions insurance for your website. Although you’re not a licensed medical professional and don’t need malpractice insurance, you should have a waiver for clients stating that your services are not curative or medically prescribed.

3. How Do I Protect Myself and My Family from My Business?

This is one of the most common concerns. Here are two crucial aspects:

• Structure: Legally structuring your business as an LLC, partnership, or corporation provides a liability shield, protecting your personal assets from business liabilities.
• Maintaining the Liability Shield: This involves having proper legal documents and practices, such as operating agreements, fund disbursement procedures, appropriate insurance, and contracts with subcontractors and employees.

Building a Strong Legal Foundation

While it’s true that legally, you may only need the necessary business licenses and state filings to start a business in North Carolina, having a robust legal foundation is essential to protect your personal assets. This includes ensuring you have all necessary legal documents and practices in place.

Conclusion

I hope this Q&A has been helpful. If you’re starting a health and wellness business or already have one and need help with any of these areas, give us a call today. I’d love to help you establish and grow your health and wellness business.