No. California law generally prohibits non-dentists from owning or controlling a dental practice. Ownership and clinical control must remain with a licensed dentist, with only narrow statutory exceptions. Non-dentists may participate through permitted management or financial arrangements, but they cannot hold ownership or interfere with clinical decision-making.
Below is a clear breakdown of what California’s corporate practice of dentistry laws allow, what they prohibit, and how non-dentists can legally participate without violating ownership rules.
California’s Corporate Practice of Dentistry Rule (CPOD)
In 2025, California codified and reinforced Corporate Practice of Dentistry (CPOD) rules to ensure that clinical dental decisions are made only by licensed professionals, not by non-dentists.
Under California law, dental practices may not be owned, operated, or controlled by a layperson or a general business entity. The policy goal is straightforward: protect patient care by preventing non-dentists from influencing diagnosis, treatment, or clinical judgment for financial reasons.
This rule is enforced by the Dental Board of California, which has the authority to investigate and discipline arrangements that violate ownership or control restrictions.
Who Can Own a Dental Practice in California?
In most cases, ownership must rest with one or more licensed dentists. Permitted ownership structures typically include:
- A Dental Corporation owned by California-licensed dentists
- Certain statutory exceptions, such as ownership by dental schools, nonprofit clinics, or government entities
In a traditional private practice, the dentist owner must retain both legal ownership and clinical control. This includes authority over patient care, staffing decisions related to clinical services, and professional judgment.
Who Cannot Own a Dental Practice?
California law generally prohibits ownership by:
- Non-dentist individuals
- Spouses or family members who are not licensed dentists
- Corporations or partnerships owned by non-dentists
- Private equity funds or passive investors seeking equity in the dental entity
- Management companies that exercise control over clinical matters
Even if a non-dentist provides the capital, handles operations, or negotiates contracts, equity ownership in the dental practice itself is not permitted.
Can a Non-Dentist Invest in or Benefit From a Dental Practice?
Yes, but only through carefully structured, non-ownership arrangements.
Non-dentists can participate financially by working with a dentist-owned practice through Management Services Organizations (MSOs) or similar service arrangements. The key is that the non-dentist does not own the dental practice or control clinical decisions.
Common permitted arrangements include:
- MSO agreements providing administrative, billing, HR, IT, and marketing services
- Real estate ownership, where a non-dentist owns the building and leases it to the dental practice
- Equipment leasing or financing arrangements
- Fee-based compensation, not tied to clinical decision-making or patient volume
These structures allow non-dentists to support or profit from the business side of dentistry without violating CPOD rules.
What Management Companies Can and Cannot Do
Management companies play a major role in California dental practices, but their authority is limited.
- Handle payroll, bookkeeping, and accounting
- Provide marketing and branding support
- Manage office operations and vendor relationships
- Offer non-clinical staff support
What MSOs cannot do:
- Interfere with professional judgements
- Control treatment planning or patient care
- Hire or fire dentists or clinical staff
- Exercise contract over billing/coding,
- Select equipment, orÂ
- scheduling.Â
If a management agreement crosses into clinical control, both the dentist and the MSO can face regulatory risk.
What Happens If Ownership Rules Are Violated?
Improper ownership or control arrangements can lead to serious consequences, including:
- Disciplinary action against the dentist’s license
- Investigations by the Dental Board
- Contract invalidation
- Forced restructuring or unwinding of the deal
- Financial penalties and reputational harm
Many violations occur unintentionally, especially when practices are acquired, restructured, or scaled with outside capital. That is why the ownership structure should be reviewed before a transaction closes, not after.
Why Ownership Structure Matters Before You Buy or Invest
Whether you are a dentist bringing in a business partner or a non-dentist exploring investment opportunities, California’s CPOD rules shape what is legally possible.
A properly structured model:
- Protects the dentist’s license
- Preserves clinical independence
- Allows lawful participation by non-dentists
- Reduces regulatory and transaction risk
At Polished Legal, we help dentists and investors evaluate ownership models, management structures, and compliance risks specific to California dentistry. We build arrangements that support growth without putting the practice or the license at risk. Contact us today for advice and guidance on dental practice ownership.
