Why is dental Partnership important?
When two or more dentists own a dental practice together, they are referred to as a “Dental Partnership.” While a professional company can’t just be formed by accident, a dental partnership may be formed by mistake. Dentists may be considered partners under California’s Corporation Code Section 16202(a) by combining expenditures and earnings. Know all about dental partnership.
Is it so horrible if you accidentally engage in a dental partnership?
Wrong! General partnerships have a general obligation to each participant, which is one of the most significant disadvantages of forming a dentistry partnership.
This means that you will be liable to repay your partner’s malpractice debts or court judgments if you’re found to be a partner and your partner is found to have committed malpractice while acting on behalf of the firm. Dental partnership agreements should include an indemnification clause to avoid this big negative.
Each member in the dentistry partnership should create a Professional Corporation; we recommend that each member in the dentistry partnership create Professional Corporation. While the partnership may result in you being held liable, your corporation will continue to shield your assets.
Dentists may only form a California Dental Partnership
Dentists can form a professional corporation or join a partnership as an individual. Dentists in California are currently not allowed to form LLCs.
Dentists are the only ones allowed to own and run their dental practice. But there are a few slight exceptions to this rule of thumb. Setting up a Dental Support Organization is an exception (DSO). Dentists and non-dentists work under a DSO arrangement to run the practice’s non-clinical components.
This permits the dentist to concentrate only on the clinical aspects of the practice while their partner handles the commercial aspects. Minority equity positions in dentistry are also available for the dental hygienist and assistant practices, doctors, and surgeons.