At Dental & Medical Counsel, we’ve witnessed how thoroughly planning the legal side can make or break a new dental venture. Whether you’re a seasoned dentist launching your first office or a recent graduate eager to serve your community, laying a solid legal foundation is crucial.
Next, we will outline key considerations, from choosing the right business entity to finalizing malpractice insurance, that will protect your interests and set your office on a path to success. In a profession where precise care is paramount, following these essential legal tips ensures that your practice remains compliant, profitable, and patient-focused. Learn more about the key legal tips you need to know below. Then, contact us to speak to our team about starting a dental office.
Selecting an appropriate business entity is often the first significant decision you’ll face. Many dentists choose a professional corporation (PC) because it meets state licensing requirements and offers limited personal liability. In other cases, dentists may consider limited liability companies (LLCs), especially if their state allows licensed professionals to adopt this structure.
A professional corporation generally provides clear benefits regarding regulatory compliance. For instance, state boards often mandate that only licensed dentists can hold equity in a PC, maintaining professional autonomy. However, note that while a PC helps shield you from corporate debts, you remain personally liable for malpractice or negligence in your clinical work.
Some dentists form a separate management services organization (MSO) to handle billing, scheduling, and administrative tasks. This division can simplify your day-to-day responsibilities and keep finances transparent. Before finalizing any structure, consult an attorney who understands both corporate law and dental regulations, ensuring that your choice meets all statutory guidelines. This should be a key part of any dental startup checklist.
Picking a business structure is a foundational decision that affects taxes, liability, and regulatory compliance. A careful review ensures your practice meets state requirements while preserving your personal assets.
Choosing wisely now pays off in the long run for both financial health and compliance. Once you’ve identified the best fit, you’ll streamline day-to-day operations and keep liabilities at bay.
Location does more than determine foot traffic, as it also dictates zoning regulations, lease terms, and renovation constraints. Even in a bustling commercial area, you must confirm local zoning codes allow for dental services. If you plan to administer sedation dentistry, additional building features like larger waiting areas or emergency exits may be required by municipal ordinance.
Renovations for a dental office go beyond typical cosmetic changes. For example, you may need specialized plumbing for operatory sinks and X-ray rooms. Building codes vary by region, so thoroughly review local requirements with contractors who have dental office experience.
Many dentists lease space for their first office, especially when budgets are tight. If you lease, negotiate clauses for improvements, maintenance responsibilities, and possible expansions. If dental practice ownership is your goal, confirm the property layout accommodates future growth, from additional operatories to specialized imaging rooms.
Each state imposes strict requirements on dentists, especially those in leadership roles. Beyond your individual dental license, you’ll need a business license for the practice itself—plus potential city or county permits. Keep track of renewal dates for DEA registrations if you prescribe controlled substances.
HIPAA and OSHA compliance remain ongoing obligations for dental offices. HIPAA addresses patient data security and privacy, requiring secure records and encrypted communications. OSHA regulations govern safety measures like disposal of sharps, protective equipment, and chemical handling.
Staying updated on state dental board rules is crucial. These boards regulate everything from advertising claims to continuing education credits. Skipping compliance steps can lead to fines, license suspension, or even practice closure. An early discussion with legal counsel ensures you fully understand each obligation and implement robust internal policies.
Building a productive culture starts with clear HR policies. An employee handbook outlines your expectations on attendance, dress code, and professional conduct. It should also delineate progressive discipline guidelines, which help you address issues like chronic lateness or subpar performance objectively.
In addition to a handbook, consider drafting formal employment contracts or offer letters, especially for key roles like associate dentists or practice managers. These documents clarify job duties, compensation structures, and non-compete clauses. Well-structured contracts protect your practice if disputes arise over salary, work scope, or termination.
When staff understand your policies from the outset, they’re less likely to test boundaries. A strong onboarding process, complete with documented roles and responsibilities, fosters accountability. If a disagreement occurs, your handbook and contracts serve as references to resolve matters swiftly and fairly.
Many dental practice owners rush the handbook process, using generic templates that overlook key healthcare nuances. A well-crafted handbook clarifies policies and protects against legal disputes.
A carefully written handbook adds stability and trust, guiding staff on expectations and rights. Investing time to address crucial details upfront can save you from bigger challenges down the road.
No dental office can operate effectively without adequate insurance. Professional liability (malpractice) coverage tops the list, shielding you from patient claims arising from alleged clinical errors. For newly licensed dentists, confirm whether your coverage extends to associates, hygienists, or other team members you employ.
General liability insurance covers accidents like patient slips and falls or property damage. If you own the building, commercial property insurance protects against floods, fires, or vandalism. Workers’ compensation is mandatory in most states if you employ a certain number of staff.
Some dentists overlook business interruption coverage, which can sustain you financially if disasters force you to pause operations. Meanwhile, cyber insurance grows increasingly relevant with digital patient records and online billing. By consulting an insurance broker who understands the dental sector, you’ll ensure comprehensive protection for your new venture.
Hiring a dental practice lawyer may seem like an extra expense, but it often saves time, money, and headaches in the long term. Dental-focused attorneys understand industry-specific rules and can tailor contracts or agreements to local labor laws. From negotiating leases to finalizing buy-ins, they ensure your paperwork reflects the nuances of patient care and professional licensing.
Consider a lawyer if you’re adding a new associate and want airtight employment terms. This ranges from restrictive covenants on patient data to clarifying future partnership options. An attorney can also help if you suspect a contract breach, like a departing hygienist taking patient lists, by guiding you through cease-and-desist letters or formal legal actions.
Lawyers also prove invaluable when facing board investigations or malpractice claims. They’ll advise on official responses, gather needed documentation, and represent your interests during hearings. Beyond these dire scenarios, regular check-ins let you keep pace with changing regulations, ensuring your practice never falls behind on compliance or patient safety protocols.
Preparing for a smooth launch goes beyond finalizing permits or selecting a calming paint color. With a strategic plan, you can minimize surprises and keep your practice on track from day one.
Taking the time to address these points now helps solidify your practice’s foundation. Once opening day arrives, you’ll be ready to focus on providing excellent care rather than scrambling to fix overlooked details.
Laying a solid legal framework is integral for any dentist aiming to build a long-lasting practice. Careful selection of your business structure, thorough review of zoning laws and licensing requirements, and well-drafted internal policies are just some of the steps that help you avoid legal pitfalls. By enacting these measures early, you’ll create a stable foundation where both staff and patients can flourish.
At Dental & Medical Counsel, we specialize in guiding dental professionals through every phase of starting a practice. From entity formation to compliance audits, we’re here to ensure your practice meets all regulatory demands while optimizing your business potential. If you’re ready to launch with confidence, contact us today to discuss how we can support your dental office journey.
Frequently Asked Questions
Q: What type of business entity should I choose for my dental startup?
A: Most dentists opt for a professional corporation (PC) or a limited liability company (LLC), depending on their state. These structures help limit personal liability and ensure compliance with dental board requirements.
Q: Can I open a dental practice in any commercial space?
A: Not necessarily. You need to confirm zoning regulations allow for dental services. If offering sedation dentistry, additional requirements may apply.
Q: What should I look for in a dental office lease?
A: Pay attention to clauses about renovations, maintenance, and the ability to expand. It’s best to have a dental lawyer review the lease before signing.
Q: Do I need more than just a dental license to start practicing?
A: Yes. You'll also need a business license, possibly a city or county permit, and active registrations like a DEA number if you’ll prescribe controlled substances.
Q: Why is an employee handbook so important for a dental office?
A: A handbook sets clear expectations, defines policies, and protects your practice from HR-related disputes. It’s especially helpful when managing staff issues.
Q: Should I have employment contracts in place?
A: Yes, especially for associate dentists and key staff. Contracts clarify duties, compensation, and legal protections like non-competes or confidentiality clauses.
Q: What insurance coverage does a dental office need?
A: At a minimum: malpractice insurance, general liability, workers’ comp (if you have staff), and possibly cyber liability and business interruption coverage.
Q: When should I hire a dental lawyer?
A: Ideally before you sign anything—leases, contracts, or partnership agreements. Legal guidance ensures your documents comply with state laws and protect your interests.
Q: What are some legal compliance issues I might overlook?
A: Dentists often forget HIPAA or OSHA requirements, like secure record storage or proper hazardous waste disposal. Regular legal check-ins help you stay compliant.
Q: What’s a soft opening, and do I need one?
A: A soft opening is a trial run before fully launching your practice. It lets you test workflows, train staff, and fix any last-minute issues before seeing paying patients.
At Dental & Medical Counsel, we've been instrumental in realizing the practice goals of countless dentists. Whether you're looking to purchase, launch, or sell a dental practice, our expertise is your guide. Beyond the initial stages, we're committed to ensuring your dental practice remains legally compliant.
We provide comprehensive support, including employment law protections, dental contract reviews, and assistance with dental employment agreements. Additionally, we specialize in incorporating dental practices and securing trademarks. And for long-term planning, our services extend to helping dentists with succession and estate planning. Trust us to be your partner in every step of your dental practice journey.
About Ali Oromchian, Esq.
Your Dental Lawyer
Ali Oromchian, JD, LL.M., is a leading legal authority in dental law and the founding attorney of Dental & Medical Counsel, PC, with over two decades of experience. His deep connection to dentistry comes from his wife's nearly two-decade-long career as a pediatric dentist.
This personal insight fuels his dedication to empowering dentists to navigate their legal challenges and achieve their practice goals. In doing so, Ali has helped thousands of doctors open their practices while maintaining legal compliance.
Ali is frequently quoted and contributes articles to dental publications, including the California Dental Society, Progressive Dentist, Progressive Orthodontists, Dentistry Today, Dentaltown, and The New Dentist magazines, further showcasing his commitment to the dental community.