As you begin to plan how you want your dental practice to grow, one of the earliest decisions you’ll need to make as a business owner is how the entity will be legally structured. Will it be a corporation, a partnership, or something in between? It’s not the easiest decision to make, which is why it makes sense to enlist the help of a dental CPA from Reliance Consulting, LLC, before moving forward.

Partnerships are common among dental practices, because they allow individuals to share in the risk of operating a business. There are many different forms of partnership, and a dental CPA can help you figure out which one is best for your company. Some options include:

• LLC – A limited liability company is a hybrid legal structure that combines the liability limits of a corporation with the tax efficiencies and other benefits of a partnership.
• LP – In a limited partnership, there typically is one or more general partners bearing the bulk of the financial responsibility and decision-making responsibilities and a number of limited partners who carry less of a financial responsibility, as defined by the company’s charter.
• LLP – The limited liability partnership spreads responsibility for the company’s debts and other financial burdens among the general partners in a way defined by the company’s charter.
• LLLP – The limited liability limited partnership is a relatively new form of limited partnership that has a different set of rules governing how liable general partners will be for the company’s debt and other financial burdens.

The way you structure your dental practice will determine how your taxes are paid and how profits are shared. As complex as it seems, you can rest easy knowing that a dental CPA from Reliance will work with you to determine how best to structure your business. Contact us to learn more about the options for structuring your dental practice as a partnership.