If you are thinking about entering into a dental partnership, here is a helpful guide to making it a success!
What Is a Dental Partnership?
A dental partnership occurs when two or more dentists are co-owners of a dental practice. A licensed dentist can own and operate a dental practice, and dental hygienists, dental assistants, physicians, and surgeons can even hold minority equity stake in that dental practice. The benefits of partnering with other professionals include sharing the overhead and management of the business together and partnering with someone with a specialized skill set, more or varied experience, or different bedside manner. Additionally, it can be easier and less stressful to grow a practice with more than one capital investment and set of ideas.
How Do You Legally Set Up a Dental Partnership?
It is possible to unknowingly enter into a dental partnership just by going into business with another dentist, so we recommend forming an official dental agreement so that there are no negative legal ramifications. You’ll want to have a dental partnership agreement with an indemnity provision so that no one party is liable for any issues facing another party. Each partner can also form a professional corporation which will protect personal assets if you incur liability due to the dental partnership.
What Is Included in a Dental Agreement?
The dental partnership agreement will specifically lay out what kind of business is being entered into. This involves explaining any relevant activities rather than simply throwing down a generic statement of purpose. The partnership agreement will clearly indicate what each partner is responsible for so no one involved can misunderstand their role. For example, it will detail how much capital each partner is investing at the start of the process, ownership percentages, how to determine future earnings, management responsibilities of the practice, how much time each dentist is required to devote to the practice, who is the custodian of patient records, when to make business decisions with a majority consent vs. unanimous consent, and other important factors related to the internal workings of the business.
Legal Help for Dentists
At Legal Lifestyle for Dentists, we are dedicated to providing you with the best dental-related legal care possible. We can help you at every step of the way in creating a successful partnership agreement with our legal knowledge and our consulting, drafting, and negotiating experience. Give us a call today!