Starting a Dental Corporation in Sacramento
Starting a Dental Corporation in Sacramento
Starting a dental corporation in Sacramento has its challenges and costs. The City of Sacramento and County of Sacramento have their fees. The State of California has its fees, including incorporation fees with the Secretary of State and tax withholding fees with the California Franchise Tax Board. Our Sacramento business attorneys are well-versed with dental corporations and have helped several corporations startup.
Sacramento Dental Corporation Licensing
The City of Sacramento requires new businesses to apply for a business operation tax account. The City of Sacramento will charge a new professional services corporation with four employees a few hundred dollars for it’s first year business operation tax. Dental corporations are considered professional services.
If the dental corporation is located outside of the incorporated City of Sacramento, then the dental corporation may still need to apply for a County of Sacramento business license. Here is a map of the City of Sacramento to help find your boundaries. The fees between the City of Sacramento and the County of Sacramento are similar. There may be other licensing requirements depending on the services provided.
Dental Corporation Formation Requirements
A dental corporation must also comply with California laws, including the California Business and Professions Code, the California Corporations Code, and the Rules adopted by the Dental Board of California . For example, dental corporations must formed as professional corporations, all shareholders must be licensed in the industry, and there are specific name requirements.
Dental Corporation Shareholder Requirements
California requires that certain professional corporations be owned only by their respective licensed individuals. For example, a Law Corporation may only have Lawyers as shareholders. This means that a CPA, a Lawyer, and a Dentist may not all own shares in a corporation that practices law. Similarly, all shareholders in a dental corporation must be licensed professionals. Only the following professionals may own shares in a dental corporation:
- a licensed dentist;
- another dental corporation;
- a physician;
- dental assistant;
- registered dental assistant;
- registered dental assistant in extended functions;
- registered dental hygienist;
- registered dental hygienist in extended functions; or,
- registered dental hygienist in alternative practice. California Business and Professions Code Section 1800.
The shareholder requirements for dental corporations means that specific language must be included in their Bylaws and Stock Certificate Legends. The language helps prevent any mishaps and is a legal requirement.
Dental Corporation Name Requirements
The dental corporation must include at least one of the designations “dental group,” “dental practice,” or “dental office,” and the family name of one or more of the past, present, or prospective associates, partners, shareholders, or members of the group. California Business and Professions Code Section 1804; California Business and Professions Code Section 1701.5.
The name of the dental corporation must be determined prior to filing the Articles of Incorporation. The Articles of Incorporation are the initial forming documents that are filed with the Secretary of State. Typically, its good practice to contact the Secretary of State to determine whether the name chosen is actually available prior to filing the Articles of Incorporation. This name inquiry is a free service provided by the Secretary of State. Once the Articles of Incorporation are properly filed and accepted, a dental corporation will be officially formed.
Dental Corporations within Partnership of Dentists
There are dental offices that set up partnerships with multiple dentists. The partnership will maintain building insurance, issue lease payments, and pay third-party management fees. The dentists working with the partnership create their own independent dental corporations. The separate corporations allow the dentists to keep their finances, insurance, and liabilities separated from the partnership. This setup provides dentists will better opportunities to write off expenses and opportunities to keep their finances separate. These types of partnerships are common amongst doctors and dentists.
Contact Sacramento Business Attorneys
Our business attorneys provide detailed consultations discussing the requirements of dental corporations. We will work with you in setting up your business, from formation to lease agreements to asset purchase agreements. Our business attorneys can draft stock transfer restrictions for dental corporations to ensure compliance with California laws. We also assist with all necessary corporate formalities, including, for example, meeting minutes, resolutions, bylaws, and stock certificates. Contact our law office to schedule an initial meeting.
By: Trevor Carson Google+
*The information provided in this post does not constitute legal advice or opinion. The information is for guidance purposes only. Individual situations vary and you should contact an attorney for a consultation. This post is considered a solicitation and advertisement. The post does not warrant the outcome of any matter. Sacramento Business Lawyer on Starting a Dental Corporation in Sacramento.