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Setting Up Your New Dental Practice

So you are about to open your own dental practice. The following is a general discussion of some of the important legal topics that should be addressed when organizing your dental practice for the first time in Ohio.

  1. Legal Entity

Generally, your ownership of a dental practice should be through a legal entity. Popular choices include a limited liability company (“LLC”) and a corporation. Entity ownership of your practice should afford you a “limited liability shield” that protects your personal assets against liabilities of your dental practice. However, note that the shield will not protect you against malpractice that you commit yourself. Thus, it is crucial to carry adequate liability insurance for you and the entity. Additionally, the name and ownership structure of your entity must comply with Ohio’s statutes and regulations governing dentistry.

An Ohio LLC or corporation must be registered with the Ohio Secretary of State. You also will need written organizational and/or corporate documents in place, as the lack of proper entity documentation can enable creditors to “pierce the corporate veil” of your entity and reach your personal assets.

  1. Tax Election

Tax considerations will influence your preferred choice of entity. Generally, S corporation partnership, and sole proprietorship tax regimes are popular for small businesses and can offer beneficial tax treatment for your practice. It is important, however, for you to consult your attorney and accountant to determine the best tax election for your particular circumstances.

If an LLC is your entity of choice, your tax treatment options will vary depending upon the number of members of the LLC. A single member LLC may be taxed as either a sole proprietorship or as a corporation (either as an S corporation, or as a less tax advantageous C corporation). Alternatively, if your practice has other owner-members, it will be a multiple member LLC and can be taxed as either a partnership or a corporation (again, either as an S corporation or a C corporation). If a corporation is the entity of choice under State law, your practice must be taxed as either an S corporation or a C corporation.

Taxation as a sole proprietorship generally requires all tax attributes applicable to your practice to be stated on your personal individual income tax return (via the appropriate schedules). Taxation as either a partnership or as an S corporation generally permit tax attributes of the entity (such as income, credits, losses and deductions) to pass through to you (and other owners). These taxing regimes are advantageous since there is generally only one layer of taxation, which is applicable at your personal income tax rate. One significant difference may exist between the partnership and S corporation tax regimes, however, in that entities taxed as S corporations can provide additional savings from self-employment taxes for its owners. Finally, taxation as a C corporation requires the practice’s income to become subject to double taxation: first at the corporate level on the corporation’s income, and second at the individual shareholder level on dividends paid to the shareholders by the corporation.

Attorneys at OLRB would be pleased to walk you through these issues and make sure that your interests are maximized and protected. Please contact Brian Kim for your legal needs at 614-716-0500 or [email protected]

Posted on Wednesday, December 31st, 2014 at 6:29 pm and filed under News and Press.

Ho Ho Hope for the Holidays – 2014 Edition

COLUMBUS, OHIO (December 1, 2014) Onda, LaBuhn, Rankin & Boggs (OLRB) is proud and honored to announce its continued participation in and contribution to the “Ho Ho Hope for the Holidays” campaign, which is hosted by The Open Shelter of Columbus.  This season will mark the 4th year of OLRB’s participation with the campaign, which provides holiday cheer and help to the homeless and marginally housed of Central Ohio.

In addition to the holiday meal and good cheer provided to the hundreds of men, women and children that attend its holiday celebration, The Open Shelter, through the contributions and participation of its many supporters, is able to provide holiday gifts to those that may otherwise be left without. OLRB encourages you to consider joining us in reaching out during this holiday season to The Open Shelter or other worthy organizations that make a special difference in the lives of those in the most need.

For those interested in assisting with gift items for The Open Shelter holiday celebration, please contact Harry
Yeprem or Mary Beittel at 614-222-2885.  For further information about The Open Shelter and how to help this holiday season, please view its webpage at www.theopenshelter.org.

Happy Holidays from the OLRB family!

Posted on Monday, December 1st, 2014 at 10:53 pm and filed under News and Press.

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