The Fine Print · JTB Law · Practice ownership
Forming a dental practice begins with a set of business decisions: who will own it, where it will operate, how decisions will be made, and what the owners want to build. Organizing those details before filing can make the legal and accounting work more focused. This checklist helps you prepare for that conversation.
Start with the practice and its owners
- Identify every proposed owner, their professional license, and their ownership percentage.
- List the states where services will be delivered and where offices are planned.
- Describe whether the entity will provide clinical services, own property, or perform management functions.
- Explain whether this is a new practice, an acquisition, a partner buy-in, or part of a larger group.
Entity availability and professional ownership requirements need to be checked for the relevant state and profession. A structure used by another business is not automatically appropriate for a dental practice. For example, Virginia has specific statutory requirements for corporations and limited liability companies formed to practice dentistry.
Coordinate the legal structure and tax treatment
The entity created under state law and its federal tax classification are related but separate questions. The IRS explains that an LLC’s federal treatment depends on factors including its membership and tax elections. Your attorney and CPA should coordinate the proposed structure, ownership, compensation arrangements, and any elections. An entity label alone does not establish the right tax outcome.
Document how ownership will work
Discuss the terms that the owners expect to govern their relationship. These questions are useful whether the practice starts with two owners or expects to add a partner later.
- What will each owner contribute, and when?
- Who can sign contracts, hire key staff, borrow money, or approve major expenditures?
- How will profits, distributions, and additional funding needs be addressed?
- What happens if an owner leaves, becomes unable to practice, dies, or wants to sell?
- How will disagreements and future ownership changes be handled?
For more on this work, explore JTB Law’s dental partnership and buy-in counsel.
Connect formation to the launch plan
Bring a list of the documents and relationships that need to use the correct entity name: the purchase agreement, lease, loan papers, insurance, employment arrangements, bank accounts, and vendor contracts. Confirm the applicable licensing, registration, and practice-opening requirements with the relevant advisers and agencies. Filing an entity is one part of that broader process.
Prepare for an entity formation consultation
Useful starting materials include the proposed practice name, owner and license information, planned locations, a simple ownership diagram, existing entity documents, and any pending transaction deadlines. Share confidential documents only after agreeing on an appropriate process with counsel.
JTB Law advises on professional entity formation and dental group formation and expansion. The engagement can address the jurisdictions involved and any needed coordination with local counsel.
Further reading: ADA: Starting a dental practice; IRS: Limited liability companies; Virginia Code § 54.1-2717.
This guide provides general information, not legal or tax advice. Entity and ownership requirements depend on the jurisdiction, profession, and facts. An attorney-client relationship begins only through an agreed engagement.
Discuss your next step
A complimentary 30-minute consultation is an opportunity to discuss your goals, the scope of your matter, and whether JTB Law is a fit. Representation begins after the engagement and any required conflict review are complete.
Or call (801) 850-6820. Please do not send confidential documents before an engagement is established.