The Value of an Advisory Team for New Dental Practices

By our dental tax advisory team, Andrea Russel, CPA Senior Manager and Diane Brownell, Manager

Launching a dental practice is both exciting and overwhelming. You’re not only focused on patient care — you’re also stepping into the role of an entrepreneur. From choosing the right business entity to securing financing and managing compliance, the decisions you make early on will have long-term impacts.

That’s why assembling an advisory team for your healthcare or dental practice before you open your doors is essential. Attorneys, CPAs, and bankers each play a unique role in helping you set up your practice on the right foundation. When they work together, their combined expertise gives you peace of mind and confidence as a new business owner.

Attorneys: Protecting You and Structuring Your Practice

One of the first and most important decisions in starting your practice is selecting the right business entity: sole proprietorship, partnership, LLC, or corporation.

Your attorney will:

• Help you evaluate entity options based on liability protection, ownership goals, and future growth.
• Draft essential legal documents such as partnership agreements, buy-sell agreements, or leases.
• Protect your personal assets by ensuring your business structure limits liability in the event of lawsuits or disputes.

Attorneys are also key in reviewing contracts with vendors, landlords, or equipment suppliers to ensure you’re not taking on unnecessary risks.

CPAs: Guiding Your Tax and Financial Decisions

The entity you select doesn’t just affect liability, it also dictates how your practice is taxed, how income is reported, and what compliance requirements you’ll face.

Your CPA will:

• Advise on the tax implications of different entities (e.g., LLCs, S Corporations, C Corporations.)
• Guide payroll setup and accounting system selection such as QuickBooks.
• Ensure you’re meeting ongoing filing and compliance requirements.
• Help build financial statements that support your ability to secure capital.

Because tax laws and compliance rules are complex, having a CPA on your side means fewer surprises and more confidence in your financial health.

Bankers: Securing the Capital You Need

Starting a dental practice often requires significant upfront investment in equipment, technology, and office space. Even if you’re financially stable, you’ll likely need financing to get your practice up and running.

Your banker will:

• Help secure financing for the purchase of an existing practice as well as startup costs like dental chairs, imaging equipment, or leasehold improvements.
• Advise on the best loan structures and repayment terms for your situation.
• Establish business banking accounts and lines of credit to support smooth operations.

Having a strong relationship with a banker also positions you well for future expansion—whether that’s adding new services, hiring additional staff, or opening another location.

Why a Team Approach Matters

While each advisor plays a distinct role, their collaboration is where the real value lies. For example:

• Your attorney and CPA can work together to ensure your chosen entity balances both liability protection and tax efficiency.
• Your banker relies on accurate financial statements (prepared with your CPA) to approve financing.
• Your attorney can review your loan documents to ensure terms are favorable.

This team approach ensures all aspects of your practice, legal, financial, and operational, are aligned and set up for long-term success.

Get Started with Confidence

We’ve helped numerous dental professionals successfully launch their practices by guiding them through entity selection, tax planning, financing, and compliance.

If you’re considering opening a dental practice, don’t go it alone. Reach out to Hungerford today to start building your advisory team so you can focus on what matters most—your patients.