If you’re a dentist looking to join forces with others in your field, it’s important to understand the different types of partnerships available. Each type offers unique advantages and operates in a way that can significantly impact your practice and professional journey.
If you are deciding whether to enter a dental partnership, always consult an experienced dental partnership agreement attorney who can advise on the best options for your practice.
In the world of dentistry, a general partnership is a team effort where each player brings their unique skills to the table. Imagine you and one or more fellow dentists decide to join forces.
Together, you set up a dental practice where everyone contributes their fair share, both in terms of money and effort. In a general partnership, you and your partners work together, make decisions together, and share the profits (or losses) of the practice.
Now, one thing to keep in mind with general partnerships is the idea of shared responsibility. This means that if your partner makes a decision, it’s as if you made that decision, too.
It’s a bit like being in a three-legged race – what one does directly affects the other. So, if your partner enters into a contract or faces a legal issue, you are also on the hook. That’s why trust and communication are important in this type of partnership.
Let’s say you’re looking for some extra financial support for your dental practice, but you don’t want too many cooks in the kitchen. This is where a limited partnership comes into play. Never hesitate to discuss this possibility with your dental business lawyer.
In this setup, you have two types of partners: general and limited. General partners run the day-to-day operations of the dental practice. They make the big decisions and take care of the everyday management.
On the other hand, limited partners are more like silent supporters. They invest money in the practice but don’t get involved in the daily management or decision-making. Think of them as financial backers with a stake in the business but prefer to stay in the background.
The catch here is that these limited partners also enjoy limited liability. This means they are less responsible for any debts or legal issues the practice might face than the general partners.
For dentists who prefer a more structured business framework, forming a professional corporation might be the way to go. In this scenario, your dental practice becomes its own legal entity – a corporation.
This setup can offer some benefits, like protecting your personal assets. If your dental corporation runs into legal troubles, your personal savings, house, and car are generally safe.
But with great protection comes great responsibility. Running a professional corporation means you have to play by some strict rules. You’ll need to hold official meetings, keep detailed records, and follow certain corporate formalities.
It’s more paperwork and regulation than a simple partnership, but for many dentists, the trade-off of having that personal liability protection and potential tax advantages is worth it.
Dental Service Organizations (DSOs)
While you, the dentist, focus on your patients’ care, the DSO team works behind the scenes, managing the business aspects of your practice. This arrangement is increasingly popular among dentists who want to concentrate on dentistry without the added burden of running the business side of things.
DSOs offer a range of services that include marketing, which helps bring new patients to your practice; billing, so you don’t have to worry about invoicing and collections; and staffing, which involves hiring and managing the support staff needed to run your practice smoothly. They may also assist with purchasing, ensuring you get the best deals on dental equipment and supplies.
One of the key benefits of partnering with a DSO is that it allows you to remain in control of the clinical aspects. You make the decisions about patient care, while the DSO handles most of the business operations.
This partnership can increase efficiency, reduce stress, and potentially more time for you to focus on your patients. However, choosing a DSO that aligns with your values and vision for your practice will be integral to how your practice operates and is perceived by patients.
Making the Right Choice With Advice from a Dental Attorney
Deciding on the type of partnership that’s right for you depends on various factors like your level of desired control, willingness to share responsibilities, and approach to liability.
Each type has its pros and cons, and understanding these will help you make an informed decision that aligns with your professional goals and vision for your dental practice.
Remember, when considering forming or joining a dental partnership, it’s always wise to seek professional advice from a dental business lawyer. Legal and financial professionals can offer insights specific to your situation, helping you understand the complexities of each partnership type and ensuring that you make a choice that’s both wise and beneficial for your dental practice.