California dentists who practice dentistry are permitted to form professional corporations here in California. The statutory authority is set forth in the Moscone-Knox Professional Corporation Act (the “Moscone-Knox Act”). See Cal. Corp. Code, §13400 et seq. Like all types of corporate entities, a Dental Corporation is formed by filing articles of incorporation with the California Secretary of State.

It is often better to form a Dental Corporation than to operate a practice as a sole proprietorship. The corporate form protects personal assets from being seized by business creditors and creating a California Professional Dental Corporation greatly facilitates adding licensed partners to a practice. The corporate form shields each of the partners from liability that may be alleged against the other(s). If you have questions about the requirements of forming a Professional Dental Corporation, or whether a Dental Corporation is the best entity type for your situation, reach out to the trusted corporate attorneys experienced in working with dentists.

Pursuant to California law, a Professional Dental Corporation has certain naming requirements that must be met when the corporation is formed. These name options include:

Dentistry: 1804. ”Notwithstanding subdivision (i) of Section 1680 and subdivision (g) of Section 1701, the name of a dental corporation and any name or names under which it may be rendering professional services shall contain and be restricted to the name or the last name of one or more of the present, prospective, or former shareholders and shall include the words “dental corporation” or wording or abbreviations denoting corporate existence, unless otherwise authorized by a valid permit issued pursuant to Section 1701.5.”

Consult with the experienced San Diego corporate attorneys to ensure that the name you want for your Professional Dental Corporation is compliant.

When forming a Professional Dental Corporation, retain an experienced San Diego corporate attorney to provide advice and assistance. There are special rules under the Moscone-Knox Act with respect to who may be shareholders — owners — in a Professional Dental Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Dental Corporation is unique in this way.

The permitted shareholders, who may also serve as officers and directors, but who may not be greater in number than the dentists and must collectively hold 49% or less of the shares are as follows:

Dental corporations:

Licensed physicians and surgeons;
Dental assistants;
Registered dental assistants;
Registered dental assistants in extended functions;
Registered dental hygienists;
Registered dental hygienists in extended functions; and
Registered dental hygienists in alternative practice.

The corporation may have employees — such as a receptionist or a book-keeper — who are not licensed as long as those employees are not providing any sort of professional dental services.

Contact San Diego Corporate Law Today

For more information, contact attorney Michael J. Leonard, Esq., or Christina Gandy-Delgadillo, Esq., of San Diego Corporate Law. Michael and Christina can be reached at (858) 483-9200 or via email. These experienced corporate attorneys can ensure your Professional Dental Corporation is set up correctly and can assist with the annual maintenance of your California Professional Dental Corporation. San Diego Corporate Law provides a host of legal services for businesses including formation of other types of corporate entities.