More About Professional Corporations

A prudent business owner should work with an expert corporate lawyer when deciding to incorporate his or her company. Working alongside a trustworthy legal adviser can help the corporation avoid many problems in the future. Incorporation Attorney has more than a decade of experience in assisting clients in forming professional corporations. Although many dentists think that they should form an LLC in California, corporate lawyers advise forming a professional corporation instead. Read through this article, and learn the basics of forming a professional dental corporation in California. 

What is considered a Professional Dental Corporation in California?

There are various types of professional corporations. A dental corporation is a professional corporation that is formed to provide dentistry-related services.

Who Regulates Dental Corporations?

All professional corporations are required to register with the appropriate government agency that regulates the specific profession that they belong. Dental corporations must be registered with the Dental Board of California and have a currently effective certificate of registration from the board under the Professional Corporation Act.

Client Question: I recently moved to the San Francisco Bay Area, and I am planning to start my own business. What corporation is best for a small startup clinic, and did you form your company online or through an attorney?

Forming a professional corporation in California isn’t as easy as some people think. We’ve enumerated the steps on how to form any type of professional corporation, and you can read about it by clicking here. But, even with those guidelines, it’s still not a guarantee that you’ll be able to incorporate your company correctly. To make sure there every single detail is covered and that there are no mistakes in the process of forming your professional corporation, it is best if you hire a corporate lawyer to assist you. More specifically, hire a corporate lawyer that specializes in forming professional dental corporations in California!
Many budding entrepreneurs choose to start their own businesses by themselves. Some of them follow guidelines and tips available on the Internet. These businesspeople choose not to hire an attorney to help them because they think they can save money if they do all the processes by themselves. But, they commonly end up spending more money fixing the problems that arise later on due to incomplete requirements or improper filing. Hiring a trustworthy corporate lawyer to assist you in the process of starting your clinic is the wiser option. An expert legal adviser can make sure all the documents needed are prepared correctly and can help ensure that the business formation process is performed thoroughly and legally. Forming a business the right way can help you avoid a plethora of legal and corporate problems in the long run.

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Talk to a well-trusted corporate attorney today! Click here!

Benefits of forming a professional dental corporation

More soon.

Personal Liability within a dental professional corporation 

More soon.

Frequently Asked Questions When Forming a Dental LLC or Professional Corporation in California

Incorporation Attorney has been approached by many dentists who want to form an LLC in California. In all of these cases, we’ve made them understand why it is a professional dental corporation that they want to form. In all these years of helping these clients, our corporate lawyers have gathered the most common questions that are asked by these entrepreneur-dentists.

1. What are the California codes and laws that dental corporations need to adhere to?

All dental professional corporations in California need to know and abide by these three codes and laws:

  1. California Corporations Code
  2. Business and Professions Code
  3. California Code of Regulations

To read the complete text of these laws and codes, go to the end of this article.

2. How should a dentist name his or her professional corporation in California?

Dental professional corporations in California must have a name that contains the name or the last name of one or more of the past, present, or future stockholders of the company. The business name should also include the words “dental corporation” or the wordings or abbreviations that clearly imply corporate existence unless otherwise authorized by a valid permit issued pursuant to Section 1701.5.

Learn more about naming your dental clinic/corporation here!

3. Are professional dentist corporations in California allowed to use a fictitious business name?

Yes. Professional dental corporations are allowed to render services using a fictitious business name or a “Doing Business As” (DBA).

4. Should dentists create bylaws for their professional corporation when setting up the management of the company?

A company’s bylaws are necessary because they serve as guidelines on how the company should operate. Professional dental corporations should have bylaws created so that the business can function effectively and efficiently. A dental corporation’s bylaws are the basis for issues, such as choosing of the directors, scheduling of shareholder meetings, management of corporate offices, etc.

5. Who can be a shareholder in a dental corporation in California?

The following licensed individuals are eligible to be stockholders in a dental professional corporation in California:

  1. Licensed physicians and surgeons.
  2. Dental assistants.
  3. Registered dental assistants.
  4. Registered dental assistants in extended functions.
  5. Registered dental hygienists.
  6. Registered dental hygienists in extended functions.
  7. Registered dental hygienists in alternative practice.

These professionals may be shareholders in a dental corporation, provided that the sum of all shares they own does not exceed 49 percent of the total number of shares in the company. They can be issued stock as long as the number of shareholders in the professional corporation does not exceed the number of persons licensed by the Dental Board of California.

The employees that a dental corporation can hire are not limited to the licensed persons on this list.

6. Who are eligible to serve as officers or directors of a professional dental corporation?

The list of individuals that can be issued stock in a dental professional corporation is also the same list of persons that can serve as officers or directors of the company.

In cases where a dental corporation has only one stockholder, only one director is needed. That single shareholder in that company can be the same person to serve as both president and treasurer of the business. All other officers do not need to be licensed individuals in this situation.

If the dental corporation has two shareholders only, the company only needs two directors also who can be the stockholders themselves. Those shareholder-directors between them can fill the roles of president, vice president, secretary, and treasurer.

7. Are there additional certificates and documents needed when forming a dental corporation in California?

The initial documents that need to be prepared when forming a dental corporation are the Articles of Incorporation. Besides these documents, there are other certificates and paperwork that need to be filed with the appropriate agencies. To know more about these, talk to a corporate lawyer that specializes in forming professional dental corporations in California.

Talk to a legal adviser from Incorporation Attorney today! Click here!

8. Do I need a certificate of registration as a dental corporation in California?

No. There is no need for dental corporations that are duly licensed by the Dental Board of California to obtain a certificate of registration for them to provide professional services.

Hire a Corporate Lawyer that Specializes in Forming Dental Corporations in California

You can make sure that your dental corporation is formed correctly by hiring a corporate lawyer to help you in the process of forming the company. Call us today and let us help you build your startup clinic! Click here!

Full Text of the State Laws and Codes that Apply to Dentist LLCs in California