An LLC can be a great choice as the business entity for your dental practice. What you may not realize is how flexible the LLC can be when it comes to deciding how your business entity will be taxed. Depending on elections made by the LLC and its members, your company can be taxed up to four different ways. This article will review the four different types of LLC taxation, and what to consider when choosing among them…
Did You Know Your Dental Practice LLC Can Be Taxed 4 Different Ways?Read More at Dentistry iQ
Bringing in an Associate: Protecting Yourself and Your Practice
Dr. Smith has decided the time has come to add a new associate to his practice. Not wanting to “waste money on an attorney,” Dr. Smith gets a copy of someone else’s associate agreement from a dentist-focused web forum and modifies it himself. Worried about the risk that his bright new associate will leave him, he decides to “strengthen” the non-compete clause by increasing the geographic area and duration of the non-compete. Feeling much better, he has the associate sign the modified agreement and they both get to work. In a few years time he decides to explore selling his practice and retains a firm to conduct a valuation. He is very surprised when the firm determines that, of the $1,000,000 of goodwill in the practice, only $600,000 is considered his, the other $400,000 of goodwill is assigned to his associate…Read More at Dentistry iQ
Playing Both Sides: Why You Should Never Use A Single Attorney For Both Sides Of A Practice Sale.
Dentists don’t usually interact with attorneys on a regular basis. They likely had an attorney draw up their corporation or LLC. Or they might have used an attorney to draft an associate agreement or a non-compete when hiring on a new dentist. They might reach out for help if they have some employment issues with staff. They’ll probably talk to an attorney when it comes time to sell their practice. But outside of that, there’s often not a lot of contact. Sometimes a dentist, in a desire to save some money during a practice sale, will look to have a single attorney handle both sides of the transaction. This seems like a sensible option, particularly when he sees ads placed in dental publications from practice brokers proudly trumpeting how the broker handled both sides of the practice sale. Why pay two people when you can pay one?Read More at Dentistry iQ
Strategic Planning and the Annual Practice Review: A Stitch in Time
Everybody knows how important it is for their dental practice to have a plan. But with the hubbub of busy operatories, it is rare for a dental practice owner to consciously and consistently take time to either work on a strategic plan or to review it regularly. Strategic planning falls into what Stephen Covey in his Seven Habits of Highly Effective People calls a ‘Quadrant II’ activity, something that both is important and is not urgent. Often days are either overwhelmed by matters that are either both important and urgent (treating the emergency patient, fighting ‘fires’ etc), or squandered on topics that are urgent, but not important (interruptions, distractions, etc). As a result, it is rare for the practicing dentist to decide to dedicate time to longer term matters that, if properly implemented, can have a dramatic positive effect on their practice, both financially and in improved quality of life…Read More at Dentistry iQ