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Reading: The Complete Manual for Establishing a California Dental Corporation 
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Hildenbrewing.com > News > The Complete Manual for Establishing a California Dental Corporation 
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The Complete Manual for Establishing a California Dental Corporation 

Taylor
Last updated: 2023/04/03 at 4:47 PM
Taylor Published April 3, 2023
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In California, there are many advantages to working as a professional California dental company as opposed to doing so as a single owner or in a dental partnership. Continue reading to learn how to do so.

Contents
What Advantages Come with Establishing a Dental Corporation?What Information Should Be In Dental Bylaws? Who Is Allowed To Own A Dental Corporation In California?Ownership Shifts in a Dental CorporationHow Long Does it Take in California to Form a Dental corporation?What Paperwork is Required For a Dental Corporation?

What Advantages Come with Establishing a Dental Corporation?

Here is a condensed summary of a few advantages of setting up a professional dentistry practice as a corporation in accordance with the California Corporation Act.

  • reduces dentists’ personal responsibility for debts and legal actions
  • enabling them to develop company business credit so that they can possibly escape by providing a personal guarantee.
  • reduces owners’ self-employment taxation
  • The choice to participate in extra perks like Medicare and retirement programs

What Information Should Be In Dental Bylaws? 

The bylaws of a dental company define the conditions under which the corporation may function.  They set the company’s internal policies and spell out guidelines for its dealings. The board of directors or shareholders may add, delete, or alter bylaw provisions upon a favorable decision.

Who Is Allowed To Own A Dental Corporation In California?

A professional company can typically only offer professional services in one field. The corporation’s shareholders, directors, and officials must possess valid professional licenses.

Nevertheless, California dentistry corporations are allowed to have shareholders, executives, administrators, or professional staff licensed in specifically related occupations and may offer services in their fields. However, they must adhere to the next two conditions:

  1. A maximum of 49% of the total shares of the California dentistry corporation’s stock may not be owned by those who work in these related fields.
  2. The corporation’s licensed dentists cannot exceed the non-dentist proprietors.

If they adhere to the two aforementioned requirements, the individuals named below are qualified to acquire control of a California dentistry corporation:

  • Dentist aides who are registered
  • Accredited dental aides with additional responsibilities
  • Dental hygienists who perform additional duties
  • Registered dental hygienists who practice in other settings
  • Licensed and registered doctors
  • Qualified doctors

Ownership Shifts in a Dental Corporation

A stockholder can easily move stock to a new owner, but only licensed dentists or people allowed to own such shares in a dental corporation may receive the ownership change.

How Long Does it Take in California to Form a Dental corporation?

The California Secretary of State takes two to three weeks to handle a newly established dental company.

What Paperwork is Required For a Dental Corporation?

  • Dental-specific bylaws and professional articles of incorporation
  • Minutes of corporate meetings
  • Share Certificates for Dental Corp. (IRS Form SS4)
  • Optional: (IRS Form 2553 Register Corp with Dental Board) S-Corp Election

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