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Key Questions to Ask Prior to Opening Your Own Dental Practice

June 22, 2017

For many dentists, the dream of opening their own practice is exciting and can offer tremendous personal and monetary rewards. However, it also requires a significant financial commitment and business acumen. Prior to making the leap from employed dentist to independent practice owner, it is important to answer the following questions:

What business entity will I choose for my practice?
Deciding how your practice will be structured is critical because it will determine the level of legal and financial risk that you take on, as well as your tax obligations.

Will I practice in a partnership or as a solopreneur?
Having a partner who can shoulder some of the work and complement your own strengths may be a good way to start your own practice, rather than going it alone right off the bat.

How will I handle my patient load and running my business?
Before you open the doors to your practice, you need to determine how you will balance serving patients while also taking care of your back-office accounting work and other administrative responsibilities. If you are starting small, you may be able to handle both and then transition to outsourcing functions such as payroll and day-to-day accountingas your practice grows.

Do I have sufficient business protection?
In order to mitigate the financial and legal risks related to owning your own practice, you’ll need to ensure that you have adequate general business and professional liability insurance as well as workers' compensation coverage, if you have employees. This will help to protect your business assets and protect you from any legal action that could
arise in the course of business.

Launching a dental practiceis a major commitment. Be sure to consider the key points above. Please reach out to our firm if you have any questions about structuring your business or would like assistance in taking care of your back-office financial tasks.

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