What TYPE of dentistry business do you own/plan to open? LLC, S Corp. etc?

[zoralsurgeon]

Hola😀

So I've been wondering...out of curiosity, what TYPE of dental office do you own or plan to open? I am talking, LLC, S-Corp, ya know?

Why did you choose the type you did?

I know many dental offices have completely different types...so, if you are open to, PLEASE share your opinions!

...Or if you wished you had done your business another way, what would you have done? Why?!

Thanks everyone!

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[aphistis]

LLC. It protects against general (not professional) liability just as incorporation would, the relatively informal structure makes it much easier to properly maintain than a C-corp, and the tax numbers work out slightly better for me than going S-corp.

 

[zoralsurgeon]

LLC. It protects against general (not professional) liability just as incorporation would, the relatively informal structure makes it much easier to properly maintain than a C-corp, and the tax numbers work out slightly better for me than going S-corp.

Very well said. Thank you. Is this pretty standard for most dental professionals? What other types may be common among your colleagues?!

 

[crazy_sherm]

California doesn't allow PLLC formation. Talking to some accountants out here, s-corp seems to be recommended way to go in CA.

 

[zoralsurgeon]

California doesn't allow PLLC formation. Talking to some accountants out here, s-corp seems to be recommended way to go in CA.

Oh wow! Didn't know that; very interesting! Thank you!

 

[diagnodent]

You start as an LLC. Then once your income goes above 180k which is the minimum needed to fund a profit sharing 401k you start filing takes as a s corp to save like 3% in tax.

 

[zoralsurgeon]

You start as an LLC. Then once your income goes above 180k which is the minimum needed to fund a profit sharing 401k you start filing takes as a s corp to save like 3% in tax.

Okay - so...as a future OMFS - would you say that this still applies to me? I will most likely hit above the 180k pretty quickly...

 

[aphistis]

Okay - so...as a future OMFS - would you say that this still applies to me? I will most likely hit above the 180k pretty quickly...

I think there are many, many things you should concern yourself with ahead of "how I should incorporate my private practice after I complete dental school, gain admittance to one of the most competitive specialties in the profession, complete an extremely demanding 4-to-6-year residency, and successfully transition into private practice."

 

[zoralsurgeon]

Thank You. I respect your opinion 🙂

 

[Atu14]

Well, yes, of course you make a valid statement. I thought that asking some people for some financial advice would be wise – what is the likelihood of the economic conditions being the same in 9 years? - probably not so high…But again, I appreciate your words and your advice.

However, on the flip side, I WILL become an OMFS. I have been shadowing one for 5 years (in fact, he wants me to take his over). I begin DS soon (accepted). In fact, I am completing a volunteer internship very soon for 3 months in Argentina. I have maintained a 4.0 GPA in both of my academic majors (Human Bio and Business). I am fluent in Spanish. I am the Student Senate Pres. @ my college.

Am I a typical pre-dent on here? Probably not. Am I bragging? CERTAINLY NOT. – I am thankful for the amazing opportunities God has given me. Am I determined to become an OMFS? ABSOLUTELY. This is what I am doing with my life. I will jump through whatever hoops presented before me.

Again, thank you for your time. Time will tell – and there’s a 99.9% chance you will see me as an OMFS in 10 years (believe it or not). Thank you.

And, FYI - I concern myself of the difficult challenges I will be confronted with on a daily basis - Am I going to waste my life thinking about it - heck no. Am I going to try learn as much as I can to operate a successful patient care practice PRIOR to starting my business - absolutely. Again, thank you for your words of advice, but the latter of your responses seemed to be quite arrogant.

Aphistis definitely gave you a practical suggestion but instead you are being arrogant and pompous about your past achievements. That 4.0 in undergrad will do no good in dental school. Remember there is difference between confidence and over-confidence. Btw which school are you heading to? And yea you have "I syndrome".

 

[zoralsurgeon]

And yea you have "I syndrome".

Haha, I am very humble actually! And FYI - aphistis is indeed very intelligent and I respect his awesome words of advice…always. Yours, on the other hand….? Thank you anyway!

The reason I posted this thread was to honestly gain some knowledge in this area of someone else's expertise. I am not a dentist, yet, and I highly value opinions from knowledgeable people. I am constantly with doctors and dentists on a daily basis, and felt that it would be beneficial to gain some understanding on here.

No hard feelings to anyone. I commend you all for your assistance, but can we please get back to my OP?

Thanks everyone!

 

[DrJeff]

My partner and I have an S-Corp. Reason being, very similar to aphistis's, for our practice and how we have it set up, the s-corp was the most favorable tax wise over the LLC or C-Corp.

I know it doesn't sound like alot, but its amazing when you see over time how a couple of percent savings in taxes can add up.

 

[infernobutterfl]

@ zoralsurgeon - your being humble, others should be the judge. Self proclaiming being humble carries no weight.


Regarding topic

Doesn't s-crop involve more paper work than LLC? Or it does not really matter at the end of the day.

 

[DrJeff]

@ zoralsurgeon - your being humble, others should be the judge. Self proclaiming being humble carries no weight.


Regarding topic

Doesn't s-crop involve more paper work than LLC? Or it does not really matter at the end of the day.

Just a smidge more paperwork, but it's all stuff that your accountant prepares for you to file with the proper gov't agencies along with your corporate return. So basically at the end of the day, it's which ever corp type that based on analysis of your current practice will have the "best" tax implications for you.

Most solo dental practices are LLC's, then you'll see a mix of LLC's, Chapter S and Chapter C corps more commonly in the group settings.

 

[HuyetKiem]

PA subchapter S. I just follow the advices from my tax lawyer and CPA and they handle all bookeepings and paperworks for my practice.

 

[zoralsurgeon]

PA subchapter S. I just follow the advices from my tax lawyer and CPA and they handle all bookeepings and paperworks for my practice.

Thanks for the info! Out of curiosity, about how much is it to have a tax lawyer and CPA each year, 10k? I got a business degree just so I would know HOW to do all the accounting and *crap* lol (prevent some ah,,,,bad stuff from happening lol), but I still will probably have someone do it...just wondering! Thanks!! 😎

 

[HuyetKiem]

Thanks for the info! Out of curiosity, about how much is it to have a tax lawyer and CPA each year, 10k? I got a business degree just so I would know HOW to do all the accounting and *crap* lol (prevent some ah,,,,bad stuff from happening lol), but I still will probably have someone do it...just wondering! Thanks!! 😎

$450/quarter for my CPA. I paid $800 last year for my tax laywer to incorporate the practice and some misc. stuffs and haven't taked to him ever since 😀😀😀.

 

[brandonbraud]

Oral surgery is fine and good...but if you really want to you can learn IV sedation, you can take CE and place implants (= LOTS of $$$), you can tackle the 3rd molar cases. I just attended an implant study club and talked to a 29-year old dentist who made recently made $24,000 for three full days of cranking out 3rds with IV, and he did a one-year program in surgery and 4 months IV. Also watched an older dentist yank out some thirds with IV.
I'm convinced that if I was the top of my class and had the best grades and blah blah blah I wouldn't want to do surgery anyway. But that might be your thing which is cool. I personally want to make money ASAP. Endo would be a cool alternative though........

It makes my heart hurt for people who haven't even started D school yet and somehow know they are going to be better than a bunch of smart and probably-already-better kids.

😎

 

[zoralsurgeon]

Oral surgery is fine and good...but if you really want to you can learn IV sedation, you can take CE and place implants (= LOTS of $$$), you can tackle the 3rd molar cases. I just attended an implant study club and talked to a 29-year old dentist who made recently made $24,000 for three full days of cranking out 3rds with IV, and he did a one-year program in surgery and 4 months IV. Also watched an older dentist yank out some thirds with IV.
I'm convinced that if I was the top of my class and had the best grades and blah blah blah I wouldn't want to do surgery anyway. But that might be your thing which is cool. I personally want to make money ASAP. Endo would be a cool alternative though........

It makes my heart hurt for people who haven't even started D school yet and somehow know they are going to be better than a bunch of smart and probably-already-better kids.

😎

Hey thanks for the info! I hope you werent referring to me as one of the ones who has not started D school yet...because I certainly know I will not be better than many; I will, however, try my hardest to be the best I can be.

Your tips are excellent. And for that I thank you. I was curious about these 1 year study programs...I asked an OMFS in my area, and he said after completing one of these externships you still cannot practice...? Do you think he is talking about the severe trauma cases?

Also, I'm clearly not in this for the money...I have been shadowing this Doc for almost 5 years now, and truly, oral surgery is something that interests me...I have had the amazing opportunity in seeing so many rare cases!!

I know a few OMFSs that put EVERY patient to sleep! One that I know (has 3 offices) added 225k revenue last year ALONE from IV sedation!! He charges around $500 a patient! Can you believe that! Is this common?

The OMFS that wants me to take his office over (the doc i've shadowed for almost 5 years) does so many 4/3 makes my eyes spin...but the area I am in is rural and he is the only OMFS in a 100 mile radius!!!

Let me know what you think, sorry for the long post!

 

[Lopyswine]

Hey thanks for the info! I hope you werent referring to me as one of the ones who has not started D school yet...because I certainly know I will not be better than many; I will, however, try my hardest to be the best I can be.

Your tips are excellent. And for that I thank you. I was curious about these 1 year study programs...I asked an OMFS in my area, and he said after completing one of these externships you still cannot practice...? Do you think he is talking about the severe trauma cases?

Also, I'm clearly not in this for the money...I have been shadowing this Doc for almost 5 years now, and truly, oral surgery is something that interests me...I have had the amazing opportunity in seeing so many rare cases!!

I know a few OMFSs that put EVERY patient to sleep! One that I know (has 3 offices) added 225k revenue last year ALONE from IV sedation!! He charges around $500 a patient! Can you believe that! Is this common?

The OMFS that wants me to take his office over (the doc i've shadowed for almost 5 years) does so many 4/3 makes my eyes spin...but the area I am in is rural and he is the only OMFS in a 100 mile radius!!!

Let me know what you think, sorry for the long post!

What was your RC score on the DAT?

 

[zoralsurgeon]

What was your RC score on the DAT?

not very well...a 20...lol you are clever..