Choosing the right business structure is a crucial decision for solo registered dental hygienists in alternative practice in California. The choice of business entity determines how the dental hygiene practice is taxed, the extent of personal liability protection and personal asset protection available to the registered dental hygienist in alternative practice, and the administrative requirements the registered dental hygienist in alternative practice will need to manage in operating the dental hygiene practice.

A future article titled “What are the Business Structure Options for Two or More Registered Dental Hygienists in Alternative Practice in California?” will discuss the additional options available when two or more registered dental hygienists in alternative practice start practicing dental hygiene together, however, for registered dental hygienists in alternative practice practicing dental hygiene solo in California, the options are limited to sole proprietorships and California Professional Registered Dental Hygienist in Alternative Practice Corporations.

This article provides an overview of the various business structure options available to registered dental hygienists in alternative practice practicing dental hygiene solo in California, helping these registered dental hygienists in alternative practice to make an informed choice that aligns with their professional goals and liability concerns in the most tax efficient format possible.

Executive Summary: Putting the Conclusion First for Busy Registered Dental Hygienists in Alternative Practice

Summary of Practicing Dental Hygiene as a Sole Proprietor

The primary benefit of a sole proprietorship for registered dental hygienists in alternative practice is its simplicity. There are few legal formalities to establish a sole proprietorship and tax reporting is equally straightforward. However, a sole proprietorship is not a separate legal entity, which means that registered dental hygienist in alternative practice sole proprietors are personally liable for all debts, liabilities, obligations, and legal judgments (including malpractice liability) against their dental hygiene practice. The lack of a separate legal entity also means there is no distinction between personal and professional business assets for registered dental hygienist in alternative practice sole proprietors, so the debts, liabilities, and legal judgments for which the registered dental hygienist in alternative practice sole proprietor is liable are satisfied from the personal assets of the registered dental hygienist in alternative practice.

Summary of Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

While inherently more complex than registered dental hygienist in alternative practice sole proprietorships, the complexity of a California Professional Registered Dental Hygienist in Alternative Practice Corporation may be reduced by working with the experienced corporate attorneys at San Diego Corporate Law. As a separate legal entity, California Professional Registered Dental Hygienist in Alternative Practice Corporations significantly reduce liability risks and are more tax efficient for most registered dental hygienists in alternative practice. For registered dental hygienists in alternative practice in high-liability practices, this reduction in risk can be substantial. The separate legal entity status of California Professional Registered Dental Hygienist in Alternative Practice Corporations also means there is a distinction between personal and professional business assets for the registered dental hygienist in alternative practice, meaning the debts, liabilities, and legal judgments against the dental hygiene practice are not generally satisfied from the personal assets of the registered dental hygienist in alternative practice.

Choosing Between a Sole Proprietorship and a California Professional Registered Dental Hygienist in Alternative Practice Corporation

For most registered dental hygienists in alternative practice, the California Professional Registered Dental Hygienist in Alternative Practice Corporation is the right chose because the tax benefits coupled with limited liability protection and ability to separate personal assets from professional business assets far outweighs the increased administrative complexity compared to practicing dental hygiene as a sole proprietorship.

Contact San Diego Corporate Law for Assistance Selecting and Forming the Best Business Structure for Your Dental Hygiene Practice

Take the next step toward securing the ideal business structure for your dental hygiene practice, whether that is a California Professional Registered Dental Hygienist in Alternative Practice Corporation or another business structure. Contact the experienced corporate attorneys at San Diego Corporate Law today to schedule a consultation and receive personalized, expert guidance tailored to your needs. Our team is here to help you make informed decisions with confidence.

Practicing Dental Hygiene as a Sole Proprietor

Practicing dental hygiene as a sole proprietor is the simplest and most straightforward business structure for solo registered dental hygienists in alternative practice in California. It requires minimal paperwork to set up compared to other business entity options and offers flexibility in managing the dental hygiene practice. However, along with these advantages come distinct disadvantages that registered dental hygienists in alternative practice must consider carefully before considering sole proprietorship as the business structure for their dental hygiene practice.

Administrative Requirements of Practicing Dental Hygiene as a Sole Proprietor

One of the primary benefits of a sole proprietorship for practicing dental hygiene is the simplicity of establishing a sole proprietorship and the continued simplicity of operating as a sole proprietor.

Sole proprietorships require minimal effort to establish, with few legal formalities involved. Typically, the initial steps of setting up a sole proprietorship include obtaining a local business license to operate legally in the municipal jurisdiction in which the practice will operate and, if applicable, registering a fictitious business name (often referred to as a d/b/a).

Unlike other business structures, there is no need to file complex paperwork or create a formal business entity, which saves both time and money, but as discussed below, there are tradeoffs in exchange for this simplicity.

Taxation of Registered Dental Hygienist in Alternative Practice Sole Proprietors

Tax considerations are a critical aspect to be examined when planning to practice dental hygiene as a sole proprietor. Sole proprietors are subject to business income taxation, self-employment taxation, and additional Medicare taxes. Understanding how these taxes apply to dental hygiene practices is essential for registered dental hygienists in alternative practice when choosing a business structure in which to operate their dental hygiene practice.

Business Income Taxation When Practicing Dental Hygiene as a Sole Proprietor

For registered dental hygienist in alternative practice sole proprietors, business income taxation is both simple and straightforward compared to that of other business entities. Sole proprietors report their business income and expenses on Schedule C (Profit or Loss from Business) to their personal income tax return, using Internal Revenue Service Form 1040. This allows registered dental hygienists in alternative practice to consolidate both personal and business income on a single tax form.

Self-Employment Tax When Practicing Dental Hygiene as a Sole Proprietor

While simple and straightforward, taxation of registered dental hygienist in alternative practice sole proprietors is not tax efficient. One significant consideration for registered dental hygienist in alternative practice sole proprietors is self-employment tax. Since a sole proprietor does not receive a salary from their business, they are responsible for paying self-employment taxes to cover Social Security and Medicare contributions. This self-employment tax is reported on Schedule SE, with the current rate at the time of this writing totaling 15.3% of net profit in addition to federal and state income taxes (however, a sole proprietor can deduct half of the self-employment tax paid as an adjustment on their tax return, which provides some financial relief).

Additional Medicare Tax When Practicing Dental Hygiene as a Sole Proprietor

High-earning registered dental hygienist in alternative practice sole proprietors may also be subject to the Additional Medicare Tax. This tax applies to individuals whose income exceeds certain thresholds, which are determined based on filing status. For registered dental hygienist in alternative practice sole proprietors filing as single, the threshold is $200,000, while it is $250,000 for registered dental hygienist in alternative practice sole proprietors filing a joint tax return with a spouse. The Additional Medicare Tax rate is 0.9% and applies only to the earnings above the specified threshold. Sole proprietors must calculate and report this tax on Form 8959, ensuring compliance with Internal Revenue Service requirements. It is important for high-earning registered dental hygienists in alternative practice to account for this additional tax in their financial planning to avoid unexpected liabilities.

Conclusions About Taxation of Registered Dental Hygienist in Alternative Practice Sole Proprietors

Understanding the tax implications of a sole proprietorship is integral when deciding which of the available business entities will be the most tax efficient, and understanding self-employment and the Additional Medicare Tax liabilities is the first step in planning and efficiently managing future tax liabilities.

Personal Liability Protection and Personal Asset Protection When Practicing Dental Hygiene as a Sole Proprietor

Practicing dental hygiene as a sole proprietor, while simple, also comes with challenges regarding personal liability protection and asset protection because a sole proprietorship is not a separate legal entity, and thus does not offer a legal distinction between the registered dental hygienist in alternative practice and the dental hygiene practice.

Personal Liability for Registered Dental Hygienists in Alternative Practice When Practicing Dental Hygiene as a Sole Proprietor

One of the primary risks faced by registered dental hygienist in alternative practice sole proprietors is personal liability. The lack of distinction between the registered dental hygienist in alternative practice and the dental hygiene practice means that the registered dental hygienist in alternative practice sole proprietor is personally liable for all debts, liabilities, obligations, and legal judgments incurred by the dental hygiene practice personally, including claims for professional negligence, better known as malpractice, for errors and omissions.

Personal Asset Protection for Registered Dental Hygienists in Alternative Practice When Practicing Dental Hygiene as Sole Proprietors

The lack of distinction between the registered dental hygienist in alternative practice and the dental hygiene practice that makes personal liability a primary risk to registered dental hygienist in alternative practice sole proprietors also means that all assets of the registered dental hygienist in alternative practice, be they strictly personal assets or assets used in the dental hygiene practice, are subject to claims by creditors and legal claimants against the personal assets of the registered dental hygienist in alternative practice (such as homes, bank accounts, investments, and other property).

Conclusions About Personal Liability and Asset Protection for Registered Dental Hygienist in Alternative Practice Sole Proprietors

The exposure to personal liability for debts, liabilities, obligations, and legal judgments (including those for professional negligence) coupled with the inability to separate personal assets from professional business assets underscores the importance for registered dental hygienists in alternative practice choosing a business structure for their dental hygiene practice to understand liability risks and take proactive measures to safeguard their personal wealth and future earnings from such claims.

Conclusions About Practicing Dental Hygiene as a Sole Proprietor

When deciding whether to practice dental hygiene as a sole proprietor, it is essential to weigh the benefits and drawbacks of this business structure. While registered dental hygienist in alternative practice sole proprietorships offer simplicity to registered dental hygienists in alternative practice, registered dental hygienist in alternative practice sole proprietorships come with significant risks and limitations. The advantages and disadvantages of practicing dental hygiene as a sole proprietor are compared below together with a recommendation for when a sole proprietorship is the best legal structure for practicing dental hygiene.

Advantages of Sole Proprietorship for Registered Dental Hygienists in Alternative Practice

The primary benefit of a sole proprietorship for practicing dental hygiene is its simplicity. There are few legal formalities to establish a sole proprietorship and tax reporting is equally straightforward.

Disadvantages of Sole Proprietorship for Registered Dental Hygienists in Alternative Practice

While sole proprietorships are simple to establish, they carry significant risks and are not tax efficient for most registered dental hygienists in alternative practice.

A sole proprietorship is not a separate legal entity, which means that registered dental hygienist in alternative practice sole proprietors are personally liable for all debts, liabilities, obligations, and legal judgments (including malpractice liability). For registered dental hygienists in alternative practice in high-liability dental hygiene practices, this risk can be substantial.

The lack of a separate legal entity also means there is no distinction between personal and professional business assets for registered dental hygienist in alternative practice sole proprietors, meaning the debts, liabilities, and legal judgments for which the registered dental hygienist in alternative practice sole proprietor is liable are satisfied from the personal assets of the registered dental hygienist in alternative practice.

When is a Sole Proprietorship the Right Business Structure for Practicing Dental Hygiene?

A sole proprietorship can be an ideal option for registered dental hygienists in alternative practice starting small-scale dental hygiene practices with the expectation of low net profit and low liability risks. However, before choosing to practice dental hygiene as a sole proprietor, it is essential to weigh the benefits of simplicity against the risks of personal liability and the future growth of the dental hygiene practice. For registered dental hygienists in alternative practice in high-risk dental hygiene practice areas or those who anticipate growth in their dental hygiene practice may want to avoid practicing dental hygiene as a sole proprietorship in favor of a business entity that is more tax efficient and provides limited liability protection together with the separation of personal assets from professional business assets.

For a more detailed understanding of the differences between professional sole proprietorships and California Professional Registered Dental Hygienist in Alternative Practice Corporations and when a sole proprietorship is the best choice of business structure for dental hygiene practices, see “When Not to Use a California Professional Registered Dental Hygienist in Alternative Practice Corporation” for more information.

Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

Practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation is not as simple or straightforward as practicing dental hygiene as a sole proprietor, however, a California Professional Registered Dental Hygienist in Alternative Practice Corporation provides the tax efficiency, limited liability protection, and separation of personal assets of the registered dental hygienist in alternative practice from the professional business assets of the dental hygiene practice that registered dental hygienist in alternative practice sole proprietorships lack.

Administrative Requirements of Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

In order to enjoy the tax efficiency, limited liability protection, and separation of personal assets a California Professional Registered Dental Hygienist in Alternative Practice Corporation provides, registered dental hygienists in alternative practice are faced with the complexity of establishing a California Professional Registered Dental Hygienist in Alternative Practice Corporation. While this formation process is complex, registered dental hygienists in alternative practice may rely upon the experienced corporate attorneys at San Diego Corporate Law to draft and file all the required legal documents for the California Professional Registered Dental Hygienist in Alternative Practice Corporation, leaving registered dental hygienists in alternative practice with essentially the same tasks they would undertake to establish a sole proprietorship. It is also worth noting that legal fees and costs of forming a California Professional Registered Dental Hygienist in Alternative Practice Corporation are usually qualified business expenses that are tax deductible.

In addition to the initial formation of a California Professional Registered Dental Hygienist in Alternative Practice Corporation, every year after the initial formation of a California Professional Registered Dental Hygienist in Alternative Practice Corporation a Statement of Information must be filed with the California Secretary of State and a shareholder and board of directors meeting must be held. Just as with the formation of a California Professional Registered Dental Hygienist in Alternative Practice Corporation, San Diego Corporate Law can assist in the annual requirements of practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation.

Despite the additional administrative requirements of practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation compared to practicing dental hygiene as a sole proprietorship, an experienced corporate attorney can make the difference in requirements comparable.

For a more detailed understanding of the administrative requirements for forming and maintaining a California Corporation, see “The 7 Steps for Forming a California Professional Registered Dental Hygienist in Alternative Practice Corporation” for more information.

Taxation of California Professional Registered Dental Hygienist in Alternative Practice Corporations

As with registered dental hygienist in alternative practice sole proprietorships, tax considerations are a critical aspect to be examined when planning to practice dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation. While registered dental hygienists in alternative practice practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation are subject to business income taxation, payroll taxes for wages, and franchise taxes paid to the California Franchise Tax Board, registered dental hygienists in alternative practice practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation are not subject to self-employment taxation or additional Medicare taxes. Understanding how these taxes apply to dental hygiene practices is essential for registered dental hygienists in alternative practice choosing a business structure in which to operate their dental hygiene practices.

Business Income Taxation When Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

A California Professional Registered Dental Hygienist in Alternative Practice Corporation is by default taxed as a personal service corporation (sometimes referred to as a professional service corporation), which is essentially a C Corporation (commonly referred to as a C-Corp) wherein corporate taxes applied to corporate profits are taxed directly at the federal and state levels at the corporate income tax rate, and any distributed dividends are subject to taxation again against the individuals receiving the dividends (referred to as “double taxation”). However, a California Professional Registered Dental Hygienist in Alternative Practice Corporation may (and almost always should) elect to be treated as an S Corporation (commonly referred to as an S-Corp), which fundamentally changes how income is taxed. This article will focus on S Corporation taxation of California Professional Registered Dental Hygienist in Alternative Practice Corporations.

Electing S Corporation status alters the tax treatment by enabling pass-through taxation. This means the profits and losses of the California Professional Registered Dental Hygienist in Alternative Practice Corporation after payment of a reasonable salary to the registered dental hygienist in alternative practice are passed directly to the registered dental hygienist in alternative practice as the shareholder who in turn reports those profits on their personal income tax returns to pay federal income tax and state income tax on the net profit of the California Professional Registered Dental Hygienist in Alternative Practice Corporation to pay personal income tax of the net profits of the dental hygiene practice.

For more information about the election of S Corporation status for a California Professional Registered Dental Hygienist in Alternative Practice Corporation, see “Can a California Professional Dental Hygienists in Alternative Practice Corporation Be an S-Corp?” for more information.

Self-Employment Tax When Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

Unlike registered dental hygienist in alternative practice sole proprietorships, which require the registered dental hygienist in alternative practice sole proprietor to pay self-employment tax on the entire net profit of the professional practice, the registered dental hygienist in alternative practice-shareholder of a California Professional Registered Dental Hygienist in Alternative Practice Corporation is not subject to self-employment taxes.

Instead of self-employment taxes on the entire net profit of the dental hygiene practice, with a California Professional Registered Dental Hygienist in Alternative Practice Corporation employee and employer contributions to payroll tax are only paid on the reasonable salary of the registered dental hygienist in alternative practice. While the sum of the employee and employer contributions total 15.3% (the same percentage as self-employment tax), the calculation of the tax is based upon the reasonable salary of the registered dental hygienist in alternative practice only and not the net profit of the California Professional Registered Dental Hygienist in Alternative Practice Corporation, which may result in significant annual tax savings compared to a sole proprietorship.

Additional Medicare Tax When Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

As discussed above for registered dental hygienist in alternative practice sole proprietorships, the Additional Medicare Tax is an extra 0.9% tax applied to earned income exceeding certain thresholds. However, because the Additional Medicare Tax is only applied to earned income and the net profit of a California Professional Registered Dental Hygienist in Alternative Practice Corporation is not deemed to be “earned” income, the Additional Medicare Tax would only be applicable to registered dental hygienists in alternative practice practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation if the reasonable salary of the registered dental hygienist in alternative practice exceeded the thresholds, meaning for all intents and purposes, practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation does not subject registered dental hygienists in alternative practice to the Additional Medicare Tax.

Annual Franchise Tax for California Professional Registered Dental Hygienist in Alternative Practice Corporations

California Professional Registered Dental Hygienist in Alternative Practice Corporations must pay an annual franchise tax that registered dental hygienist in alternative practice sole proprietorships do not pay. The franchise tax paid by a California Professional Registered Dental Hygienist in Alternative Practice Corporation taxed as an S Corporation is 1.5% of net profit with a minimum of $800 annually. While this is a tax not paid by registered dental hygienist in alternative practice sole proprietorships, the annual franchise tax is very small in comparison to self-employment taxes and the Additional Medicare Taxes paid by registered dental hygienist in alternative practice sole proprietors.

Conclusions About Taxation of California Professional Registered Dental Hygienist in Alternative Practice Corporations

Understanding the tax benefits of a California Professional Registered Dental Hygienist in Alternative Practice Corporation is integral when deciding which of the available business entities will be the most tax efficient, and understanding self-employment and the Additional Medicare Tax liabilities is the first step in planning and efficiently managing future tax liabilities.

For a more detailed understanding of the taxation of California Professional Registered Dental Hygienist in Alternative Practice Corporations, see “What Tax Benefits Does a California Professional Registered Dental Hygienist in Alternative Practice Corporation Provide?” for more information.

Personal Liability Protection and Personal Asset Protection When Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

Practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation, while more complex than practicing dental hygiene as a sole proprietorship, overcomes many of the personal liability protection and asset protection shortcomings of registered dental hygienist in alternative practice sole proprietorships. A California Professional Registered Dental Hygienist in Alternative Practice Corporation is a separate legal entity distinct from the registered dental hygienist in alternative practice, thus offering a legal distinction between the registered dental hygienist in alternative practice and the dental hygiene practice as well as personal and business assets of the registered dental hygienist in alternative practice.

Personal Liability Protection for Registered Dental Hygienists in Alternative Practice When Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

Practicing dental hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation resolves most of the risks faced by registered dental hygienist in alternative practice sole proprietors for personal liability. California Professional Registered Dental Hygienist in Alternative Practice Corporations provide a separate legal entity distinct from the registered dental hygienist in alternative practice, meaning the registered dental hygienist in alternative practice is generally not personally liable for the debts, liabilities, obligations, and legal judgments incurred by the dental hygiene practice.

Under California law, claims for professional negligence, better known as malpractice, for errors and omissions of registered dental hygienists in alternative practice are personal to the registered dental hygienists in alternative practice and not shielded by the existence of the California Professional Registered Dental Hygienist in Alternative Practice Corporation, however, malpractice is an insurable risk and appropriately apportioned professional liability insurance may be used to indemnify the registered dental hygienist in alternative practice from this risk.

Personal Asset Protection for Registered Dental Hygienists in Alternative Practice When Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

The separate legal entity and distinction between the registered dental hygienist in alternative practice and the dental hygiene practice provided by a California Professional Registered Dental Hygienist in Alternative Practice Corporation means that, unlike a sole proprietorship, the California Professional Registered Dental Hygienist in Alternative Practice Corporation separates the personal assets of the registered dental hygienist in alternative practice from professional business assets of the dental hygiene practice. Therefore, claims by creditors and legal claimants against the California Professional Registered Dental Hygienist in Alternative Practice Corporation are generally limited to the professional business assets of the California Professional Registered Dental Hygienist in Alternative Practice Corporation and are not satisfied against the personal assets (such as homes, bank accounts, investments, and other property) of the registered dental hygienist in alternative practice.

Conclusions About Personal Liability and Asset Protection When Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

The limitation of personal liability for debts, liabilities, obligations, and legal judgments against the California Professional Registered Dental Hygienist in Alternative Practice Corporation coupled with the ability to separate personal assets from professional business assets makes the use of a California Professional Registered Dental Hygienist in Alternative Practice Corporation the choice for registered dental hygienists in alternative practice who wish to limit their personal liability and protect their personal wealth and future earnings from most claims arising out of their dental hygiene practice.

For a more detailed understanding of the liability protection and asset protection of California Professional Registered Dental Hygienist in Alternative Practice Corporations, see “What Liability Protection Does a California Professional Registered Dental Hygienist in Alternative Practice Corporation Provide?” for more information.

Conclusions About Practicing Dental Hygiene with a California Professional Registered Dental Hygienist in Alternative Practice Corporation

When deciding if practicing dental hygiene as a California Professional Registered Dental Hygienist in Alternative Practice Corporation is worth the additional cost and administrative requirements, it is essential to weigh the benefits and drawbacks of this business structure. While California Professional Registered Dental Hygienist in Alternative Practice Corporations are more complex, California Professional Registered Dental Hygienist in Alternative Practice Corporations resolve many of the significant risks and limitations inherent to practicing dental hygiene as a sole proprietorship. The advantages and disadvantages of operating with a California Professional Registered Dental Hygienist in Alternative Practice Corporation are compared below together with a recommendation for when a California Professional Registered Dental Hygienist in Alternative Practice Corporation is the best legal structure for practicing dental hygiene.

Advantages of California Professional Registered Dental Hygienist in Alternative Practice Corporations

While practicing dental hygiene as a sole proprietorship is simple to establish, doing so carries significant risks and is not tax efficient for most dental hygiene. California Professional Registered Dental Hygienist in Alternative Practice Corporations significantly reduce liability risks and are more tax efficient for most dental hygiene.

A California Professional Registered Dental Hygienist in Alternative Practice Corporation is a separate legal entity, which means the registered dental hygienist in alternative practice is generally shielded from personally liable for debts, liabilities, obligations, and legal judgments (other than the insurable risk of malpractice liability). For registered dental hygienists in alternative practice in high-liability dental hygiene practices, this reduction in risk can be substantial.

The separate legal entity status also means there is a distinction between personal and professional business assets for registered dental hygienists in alternative practice, meaning the debts, liabilities, and legal judgments against their dental hygiene practice are not generally satisfied from the personal assets of the registered dental hygienist in alternative practice.

Disadvantages of California Professional Registered Dental Hygienist in Alternative Practice Corporations

The primary benefit of a sole proprietorship is its simplicity, and in turn the primary disadvantage of a California Professional Registered Dental Hygienist in Alternative Practice Corporation is the relative complexity of formation and operation. However, registered dental hygienists in alternative practice may rely upon the experienced corporate attorneys at San Diego Corporate Law to draft and file all the required legal documents for establishing and maintaining the California Professional Registered Dental Hygienist in Alternative Practice Corporation, leaving these registered dental hygienists in alternative practice with essentially the same tasks they would undertake to establish and maintain a sole proprietorship.

When is a California Professional Registered Dental Hygienist in Alternative Practice Corporation the Right Business Structure for Practicing Dental Hygiene?

A California Professional Registered Dental Hygienist in Alternative Practice Corporation can be an ideal option for registered dental hygienists in alternative practice starting dental hygiene practices based upon the tax efficiency, limited liability protection, and separation of personal assets from professional business assets that California Professional Registered Dental Hygienist in Alternative Practice Corporations provide. Small-scale dental hygiene practices with the expectation of revenue growth can benefit from starting as a California Professional Registered Dental Hygienist in Alternative Practice Corporation to avoid the future need to reestablish the dental hygiene practice as revenue grows. Similarly, small-scale dental hygiene practices in high-risk practice areas may benefit from the limited liability protection and separation of personal assets from professional business assets provided by a California Professional Registered Dental Hygienist in Alternative Practice Corporation regardless of revenue or profitability.

For a more detailed understanding of the differences between registered dental hygienist in alternative practice sole proprietorships and California Professional Registered Dental Hygienist in Alternative Practice Corporations, and when a California Professional Corporation is the best choice of business structure for a professional practice, see “When to Use a California Professional Registered Dental Hygienist in Alternative Practice Corporation” and “Sole Proprietorship vs Professional Dental Hygienist in Alternative Practice Corporation in California” for more information.

Registered Dental Hygienists in Alternative Practice in California May Not Practice Dental Hygiene as a Limited Liability Company (LLC) or Professional Limited Liability Company (PLLC)

A The experienced corporate attorneys at San Diego Corporate Law are frequently asked about limited liability companies and professional limited liability companies, so this topic will be briefly discussed here.

California law explicitly prohibits registered dental hygienists in alternative practice from provide dental hygiene services as Limited Liability Companies (LLCs) or Professional Limited Liability Companies (PLLCs). This prohibition may be found in California Corporations Code Section 17701.04(e), which reads:

“Nothing in this title shall be construed to permit a domestic or foreign limited liability company to render professional services, as defined in subdivision (a) of Section 13401 and in Section 13401.3, in this state.”

Instead, California requires registered dental hygienists in alternative practice who wish to operate in corporate form to utilize other types of business entities, such as California Professional Registered Dental Hygienist in Alternative Practice Corporations.

For a more detailed understanding of the prohibition on the use of LLCs for dental hygiene practices in California, see “Can a Registered Dental Hygienist in Alternative Practice Use a California LLC?” and “Can I Use a PLLC to Practice as a Dental Hygienist in Alternative Practice in California?” and for more information.

If an LLC or PLLC is currently being used for a dental hygiene practice in California, see “10 Steps to Convert LLC to Professional Registered Dental Hygienist in Alternative Practice Corporation in California” and “Four Reasons Not to Convert LLC to Professional Registered Dental Hygienist in Alternative Practice Corporation in California” or “12 Steps to Convert a PLLC to a California Professional Dental Hygienist in Alternative Practice Corporation” and “Four Reasons Not to Convert Foreign LLC or PLLC to a California Professional Registered Dental Hygienist in Alternative Practice Corporation” for more information about bringing the professional practice into compliance with California law.