Key Legal Mistakes to Avoid When Growing Your Dental Practice

Levi Barlavi

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September 15, 2025

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Expanding a dental practice is a significant and exciting step. Growth can bring in more patients, higher revenue, and opportunities to strengthen your long-term future. But expansion also comes with risk. Too often, dentists focus on the clinical side and overlook the legal details that keep a practice running smoothly. Those oversights can quickly become costly mistakes.

At Polished Legal, we help California dentists build practices on a solid legal footing. By avoiding common legal mistakes, you can position your practice for sustainable success.

Poorly Drafted or Missing Contracts

Contracts are the backbone of a healthy practice. Whether youโ€™re hiring staff, partnering with another dentist, or negotiating a vendor agreement, the fine print matters. Common mistakes include:

  • Handshake deals: Relying on verbal promises rather than written agreements creates uncertainty.
  • One-sided agreements: Accepting terms that only protect the other party leaves your practice exposed.
  • Failure to review renewals: Overlooking auto-renew clauses or outdated terms can lock you into unfavorable arrangements.

A well-drafted contract not only outlines responsibilities, but it also helps resolve disputes before they become costly battles. We work with dentists to review, negotiate, and update contracts so they protect your interests.

Lack of Long-Term Planning

Growing without a plan can cause more harm than good. Expansion decisions, like opening a second office, acquiring another practice, or investing in expensive equipment, should always align with your financial and professional objectives. Without a clear strategy, you may face:

  • Cash flow issues from overextended credit
  • Conflicts among partners if expectations arenโ€™t aligned
  • Missed opportunities for tax savings or liability protection

We recommend creating a growth plan that considers structure, financing, and succession. By addressing these early, youโ€™ll avoid scrambling when opportunities or challenges arise.

Overlooking Compliance and Licensing

Dentistry is one of the most heavily regulated professions. Compliance doesnโ€™t end once youโ€™re licensed; itโ€™s an ongoing responsibility. Missing key requirements can result in fines, disciplinary action, or even the closure of the practice. Common compliance gaps include:

  • Failure to update permits when relocating or expanding
  • Ignoring OSHA and HIPAA obligations during growth
  • Misclassifying employees as contractors to save on payroll costs
  • Overlooking state-specific requirements for dental corporations

As practices grow, compliance becomes more complex. We help ensure your expansion meets Californiaโ€™s strict professional and corporate requirements so your growth doesnโ€™t get derailed by avoidable mistakes.

Ignoring Employment Law Obligations

Your team grows in tandem with your practice. With that growth comes added responsibilities as an employer. Employment-related disputes are one of the most common legal headaches for dental practices. Risks include:

  • Inconsistent employee contracts or handbooks
  • Wage and hour violations, especially with overtime pay
  • Lack of documented performance reviews or termination procedures

Even minor missteps can lead to costly claims. By updating your policies and agreements, you can foster a strong workplace while protecting the practice youโ€™ve worked hard to build.

Not Seeking Legal Guidance Early

Many dentists call us only after a problem has escalated. By then, options are limited and costs are higher. The better approach is preventive. Involving an attorney at the planning stage ensures that contracts, compliance, and growth strategies are aligned from the beginning.

At Polished Legal, weโ€™re more than just legal counsel; weโ€™re strategic advisors who understand the unique challenges dentists face. Whether youโ€™re expanding to a new location, buying equipment, or hiring staff, weโ€™ll help you grow the right way.

Build a Strong Foundation for Growth

Growth is exciting, but it shouldnโ€™t put your practice at risk. By avoiding common legal mistakes like poor contracts, lack of planning, and compliance oversights, you can focus on what you do best: providing excellent care to your patients.

Polished Legal helps dentists in Los Angeles and throughout California build practices that are strong, sustainable, and protected. If youโ€™re ready to grow with confidence, contact us today to get started.

Frequently Asked Questions

Do I really need written contracts if I trust the people I work with?

Yes. Even if you have a good relationship with a partner, vendor, or employee, a written contract protects both sides by clearly spelling out expectations. Verbal agreements often lead to misunderstandings that could have been avoided with a clear written document.

What compliance issues do dentists most often overlook when expanding?

Common oversights include updating state permits when opening new offices, maintaining OSHA and HIPAA standards as the practice grows, and ensuring employees are classified and paid properly. These are areas where even minor errors can result in fines or disciplinary action.

When should I involve a lawyer in my growth plans?

Itโ€™s best to involve a lawyer early, before signing contracts, securing financing, or opening a new location. Preventive guidance saves time and money compared to fixing problems after they arise. A lawyer can help you structure agreements and plans that support your long-term success.

Levi Barlavi

Levi is the trusted legal partner behind hundreds of successful dental practices. See full bio.

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