How to Start Your Dentistry Professional Corporation in 2019
What Are The Professional Requirements For Starting A Dental Corporation?
For opening one’s own dental corporation, the person should be licensed individually by the Dental board of their city.
It is stated that all the professional corporations should be registered along with a correspondent government agency which is assigned the task to handle their profession.
For example, a dental corporation from California must be registered in conjunction with the Dental Board of the city. It is also a must for the corporation to keep in their possession an effective certificate under the PCA (Professional Corporations Act) of the registration certified from the Dental Board, California.
What Are The Requirements Necessary For A Dental Corporation?
If one wants to open their own dentistry professional corporation, then they need to bear in mind that the name of their corporation must be inclusive of either the first or last name of one or the other between the former, prospective and the present shareholders. Also, care must be taken that the name of the dental corporation contains terms such as ‘dental corporation’ ‘Prof. Corp’ ‘Corp’ ‘Corporation’ ‘Inc’ or ‘Incorporated’.
What Are Some Of The Advantages Of Opening A Dental Corporation?
One can state that there are multiple advantages to opening a professional dental corporation in their city.
Firstly, starting one’s own dental corporation in the city will minimize the taxes of self-employment for the shareholder(s), it will reduce their personal liability in opposition to the lawsuits and the creditors. It will also noticeable reduce the losses experienced by them and pass profits by the shareholders for avoiding double taxation and thus allow them to create business credits along with much more.
What Are The Steps One Should Take For Beginning A Dentistry Professional Corporation?
- Step 1: One has to file articles of the incorporation concerning the professional corporation with the secretary of state for the formation of the professional corporation.
- Step 2: One has to notify the state agency of their profession which handles their profession. One should issue a meeting of the board of directors and settle on the post of the director, in addition to this they should get their professional corporation drafted by bylaws. This is followed by applying for one’s EIN and filing one’s statement of information, filing form 2253 with the intention of the tax election of S-corporation.
- Step 3: One has to pay the corporate taxes to their respective franchise board of tax, as well as register for the EDD if they wish to hire employees in their professional corporation. And lastly, one has to apply for the registration of local business and licenses.
All of the above mentioned steps can be carried out individually or through the help of a hired Business lawyer.
How Can One Form A Professional Dental Corporation In Their City?
- One must pay the fee of filing along with the filing of the articles related to incorporation in addition to the secretary of the state. The estimated fee for filing currently is $100. It is expected of one to state in the articles of incorporation that the purpose is ‘dental’.
- They have registered their professional dental corporation under the Dental Board of their city, along with organizing a corporate meeting in which one will issue the shares in addition to electing the directors and officials for the Professional Dental Corporation.
- There must be a creation of certain custom bylaws for the dental corporation.
- One should apply for the EIN.
- One must file a statement of incorporation with the secretary of state.
- They must do filing of the form 2553 for the tax election of S-corporation intended to the Professional Dental Corporation.
- Along with this, one must pay their city corporate fees and taxes to the respective Franchise Tax of their city.
- They must register for the EDD if they wish to hire employees for their Dental Corporation.
- They should apply for the local registration and license of their business.
Who is qualified to become a shareholder in the dental corporation?
Certain professionals are capable of being the shareholders in the dental corporations, they are inclusive of licensed surgeons, certified and licensed physicians, dental assistants that are registered, as well as dental hygienists that are registered in the alternative practice.
However, a question arises amidst all this – Can a single shareholder own a dental corporation?
The answer is yes, a single shareholder can also own a dental corporation in their city. However, this single shareholder should be someone that is licensed for the practice in the domain of dentistry in his / her respective city. In addition to this, they must also serve as both treasurer and president for their corporation. For other officers of the corporation, it is not a requirement to be licensed for the practice of dentistry.
Author Bio: Mollaei Law is a law firm specializing in business law serving businesses and entrepreneurs. We provide legal expertise in all stages of business development by drafting and reviewing contracts and agreements, assisting transactions and negotiating, forming LLC's and Corporations, registering trademarks and copyrights, business planning, itin application and answering any legal questions you may have about your business. You can read my latest published article about How to set up an LLC in California.