Professional Corporation Setup for Los Angeles Dentists

California law requires dentists to operate through a Professional Corporation if they want the liability protection and tax benefits of a formal business entity. A PC ensures that your practice is structured properly and meets state standards. With the right setup, you can:

• Protect your personal assets from most business liabilities
• Take advantage of tax planning opportunities not available as a sole proprietor
• Establish credibility with patients, lenders, and insurance providers
• Build a structure that supports long-term growth and potential partnerships

A PC must meet specific legal and professional requirements that go beyond those of a standard business entity. Some of the most important include:

• Ownership restrictions: Dentists must always remain the majority shareholders, although certain licensed professionals may hold a minority interest.
• Corporate naming rules: Your corporation’s name must clearly identify it as a professional dental corporation and include terms such as “Dental Corporation” or “D.D.S., Inc.”
• Licensing requirements: All shareholder-dentists must hold active California dental licenses in good standing.
• Ongoing filings: PCs are required to submit regular reports and maintain corporate records.

Failing to meet these requirements can delay or derail your filings, which is why many dentists rely on us.

While every dentist’s situation is unique, most PC setups in California follow a similar process. We guide you through each step, including:

1. Choose a compliant name and check availability.
2. File Articles of Incorporation with the state.
3. Draft bylaws to outline how your corporation will be managed.
4. Obtain an EIN (Employer Identification Number) from the IRS.
5. File a Statement of Information to keep details current.
6. Register for state tax obligations and set up payroll if needed.
7. Secure necessary business licenses so your practice can open.

Many dentists also elect S-Corp status to reduce self-employment taxes. We’ll help you evaluate whether that choice makes sense for your practice.

By working with us, you won’t have to worry about missed steps or incorrect forms. We handle the details, explain your options, and keep the process moving forward.

Forming your Professional Corporation is only the first step. To keep your practice in good standing, California requires ongoing compliance. Dentists must:

• File annual Statements of Information with updated shareholder and officer details.
• Pay the annual franchise tax to the state.
• Maintain corporate records, including bylaws and meeting minutes.
• Keep dental licenses current, since the PC depends on active licensure.
• Comply with payroll and employment laws if staff are hired.

Meeting these requirements protects your liability shield and keeps your PC in good standing. We provide support beyond setup so your practice stays compliant year after year.

We understand that your focus should be on patients, not paperwork. When you work with Polished Legal, you get:

• Clear explanations so you know what each step means for your practice
• A streamlined process designed specifically for dentists
• Ongoing compliance support to help you avoid costly mistakes later
• Peace of mind knowing your practice is built on a strong legal foundation

We make the legal side straightforward and stress-free.

Forming a Professional Corporation in Los Angeles may seem complicated, but with the right guidance, it doesn’t have to be. At Polished Legal, we help dentists like you start and grow practices that comply with state rules while protecting your personal and professional future.

If you’re ready to form a PC or want to learn more about the process, we’re here to help. Contact us today to discuss how we can set up your Professional Corporation and position your practice for long-term success.