3 Steps to Starting Your Dentistry Professional Corporation in 2025

Form Your Dental Professional Corporation in California

If you’re a dentist in California, you’re required to form a Professional Dental Corporation (PDC) to practice dentistry legally.
Under California law, dentists cannot form LLCs or standard corporations for their dental practices.

Instead, you must register a Professional Corporation under the Moscone-Knox Professional Corporation Act (California Corporations Code §§ 13400–13410) and the Dental Practice Act.

If your corporation is set up incorrectly, the Secretary of State may reject your filing — exposing you to penalties, lawsuits, and even disciplinary action from the Dental Board of California.

At All-in-Juan Business Consultancy Services, we’ve helped thousands of professionals, including dentists, doctors, and hygienists, establish their Professional Corporations quickly, correctly, and fully compliant with California law.

📩 Email: [email protected]

What Is a Dental Professional Corporation?

A Dental Professional Corporation (DPC) is a legally recognized business entity for licensed dentists in California.
It allows you to operate your dental practice as a corporation, offering both liability protection and tax benefits, while maintaining compliance with the Dental Board of California and California Secretary of State regulations.

Every Dental Corporation must hold a current Certificate of Registration from the Dental Board of California before practicing or advertising professional services.

Why Elect S-Corporation Status

By default, a Dental Professional Corporation is taxed as a C-Corporation, resulting in double taxation — where both the corporation and shareholders are taxed.

To avoid this, dentists can file IRS Form 2553 to elect S-Corporation status, allowing income to pass through to personal tax returns.
This structure helps reduce self-employment taxes, ensures simplified reporting, and lets you pay yourself a salary plus distributions, optimizing your overall tax burden.

3 Steps to Form Your Dental Professional Corporation

Step 1: File Articles of Incorporation

Submit your Articles of Incorporation for a Professional Corporation to the California Secretary of State.
Include a statement confirming your entity is organized under the Moscone-Knox Professional Corporation Act.

Step 2: Complete All Legal and Licensing Requirements

After incorporation, you must:

• Apply for your EIN from the IRS

• Appoint Directors

• Draft your corporate bylaws

• File your Statement of Information with the Secretary of State

• File Form 2553 to elect S-Corporation tax status

• Pay annual taxes to the California Franchise Tax Board (FTB)

• Register with the Employment Development Department (EDD) if you pay salaries

• Apply for local business licenses or permits

Step 3: Let Experts Handle the Setup for You

At All-in-Juan Business Consultancy Services, we can manage every step — ensuring your corporation meets state, tax, and dental board compliance from start to finish.

📩 Email: [email protected]

Benefits of a Dental Professional Corporation

Forming a Professional Dental Corporation in California offers key advantages:
✅ Personal Liability Protection – Protects your personal assets from business debts or lawsuits.
✅ Tax Efficiency – Save on self-employment tax through S-Corporation election.
✅ Professional Legitimacy – Shows compliance with California’s legal and dental regulations.
✅ Business Credit and Growth – Build your practice’s credit profile and expand confidently.

Professional Dental Corporation Requirements

According to California Corporations Code §13401(b) and the Moscone-Knox Act, all Professional Corporations must register with their governing board.
Dentists are regulated by the Dental Board of California and must hold a valid Certificate of Registration to practice under their corporation’s name.

Who Can Be a Shareholder in a Dental Corporation?

California law requires that:

• Licensed dentists must own at least 51% of the corporation’s shares.

• The remaining 49% may be owned by related licensed professionals, including:

  • Registered Dental Hygienists

  • Dental Assistants in Extended Functions

  • Physicians or Surgeons

  • Registered Dental Hygienists in Alternative Practice

Non-dentist shareholders cannot outnumber dentist shareholders, and their combined ownership cannot exceed 49% of total shares.

If a shareholder becomes disqualified or deceased, their shares must be transferred to a qualified professional within 90 days (or six months in case of death).

Naming Requirements for Dental Professional Corporations

Your corporate name must comply with state and board regulations. It must:

• Include the name or surname of one or more licensed dentists (current or former shareholders).

• End with a corporate designation such as:
  “Dental Corporation,” “Professional Corporation,” “Prof. Corp.,” “Corporation,” “Corp.,” “Incorporated,” or “Inc.”

• Avoid being misleading, confusing, or deceptive.

Example:
✅ Jane Doe Dental Corporation
✅ Doe Family Dental, Inc.

Using a Fictitious Business Name (DBA)

Yes — a Dental Professional Corporation may operate under a fictitious business name (DBA) if properly registered.
To do this:

• File a Fictitious Business Name Statement in the county where you operate.

• Notify the Dental Board of California.

• Ensure the name complies with Business and Professions Code §17900(b)(c) — it cannot misrepresent ownership or number of dentists.

Example of a DBA:
🦷 BrightSmile Family Dentistry (filed under Jane Doe Dental Corporation)

Single-Shareholder Dental Corporations

A Dental Professional Corporation in California may be owned by a single dentist.
In such cases, the shareholder must:

• Be a licensed dentist in California

• Serve as both President and Treasurer of the corporation

Other officers (e.g., Secretary) do not need to be licensed.

Taxation for Dental Professional Corporations

By default, Dental Professional Corporations are taxed as C-Corporations, which subjects both the business and shareholders to taxes on income (double taxation).

To avoid this, dentists should elect S-Corporation status by filing IRS Form 2553.

This allows the corporation to be treated as a pass-through entity where profits and losses are reported on the owner’s individual tax return.
You’ll pay yourself a reasonable salary and take additional profits as owner distributions, optimizing tax efficiency.

Start Your Dental Professional Corporation the Right Way

Setting up a Dental Professional Corporation in California can be complex — but it doesn’t have to be.
At All-in-Juan Business Consultancy Services, we handle the entire process — from incorporation to S-Corp election and compliance with the Dental Board — so you can focus on your patients.

📞 Contact Number: +1 424 407-3686
📩 Email: [email protected]
🌐 Website: www.all-in-juanbusinessconsultancyservices.com

All-in-Juan Business Consultancy Services — helping California dentists form their corporations the right way under the Moscone-Knox Act.