Dental Entity Formation

As with most things each entity has its pros and cons. Below is a list showing how each entity differs.

  • Sole Proprietorship 
    • Least initial cost
    • Maximum Personal Liability
    • Personal Taxation
    • One member needed
    • No associated lettering
  • Partnership
    • Second least initial cost
    • Needs two or more members
    • Some limits to Personal Liability
    • Personal Taxation
    • Associated with “LLP”, “LP”, “GP”, or “Partnership” lettering
  • LLC (Limited liability company)
    • Highest startup cost for entity formation
    • One member needed
    • No Personal Liability
    • Annual Meetings
    • Personal (Pass Through) Taxation
    • Associate with “LLC” lettering
  • Corporation
    • Highest startup cost for entity formation
    • One member needed
    • No Personal Liability
    • Annual Shareholder Meetings
    • Specific requirements for meetings
    • Corporate Taxation
    • Associated with “Inc.” lettering