Dental Law Archives - Brenden Kelley Law

Consumer Law Issues for Dentists: What You Need to Know

by Brenden | Dec 28, 2022 | Business Law, Dental Law

Starting a new dental practice is an exciting time, but it’s important to ensure you’re in compliance with all relevant laws to prevent legal issues down the road. As a dentist, you must comply with all consumer laws, including those specific to medical professionals. Here are some of the most important issues to consider.

Consent: What You Need to Know

One of the most important issues for dentists is obtaining informed consent from patients before performing any dental procedure. Informed consent requires that you provide detailed information about the proposed treatment, viable alternatives, and any foreseeable risks of the procedure. You must answer any questions and get the patient to sign an informed consent form. Failure to obtain informed consent can result in legal action. If you’re unsure of the requirements where your practice is located, consult a dental lawyer.

Dental Patient Rights

As a dentist, you must uphold dental patient rights, as set forth by the Ohio licensing board. This includes standards related to care, reporting, records, and other dental patient rights issues. Any violations of these rights can lead to sanctions and lawsuits.

HIPAA: Protecting Patient Data

HIPAA sets the standard for protecting sensitive patient data, including dental records. This means that you must take the necessary steps to protect physical and digital records and information regarding patient diagnosis and treatment. Patient data must be kept confidential except when given written permission to disclose it to others, such as insurance providers.

Dental Malpractice and Clinical Negligence

Dental malpractice lawsuits can arise when a dentist fails to follow the generally accepted standard of care when treating a patient. This can result in nerve injuries, failure to diagnose oral cancer or periodontal disease, and wrongful tooth extraction. If you’re facing a dental malpractice lawsuit, consult a malpractice lawyer immediately. Clinical negligence lawsuits can be costly and complicated cases to resolve, even though payouts should ultimately be covered by malpractice insurance.

Associate Agreements: What to Look Out For

When considering associate agreements, carefully assess the merits of the offer and scrutinize for any limiting clauses, such as transfer of ownership of patient charts, non-solicitation provisions, and non-compete clauses. If you’re unsure of the potential legal implications of an offered associate agreement, discuss the contract with an attorney.

Practice Buy-Ins and Partnership Agreements: Know What You’re Getting Into

Partnership agreements will dictate your tax burden, legal liability, management responsibilities, and many other factors of your business. It’s important not to sign such a document unless you are sure that all the legal consequences are in your best interests—or at the very least that you are fully informed of their consequences.

Running a dental practice comes with a variety of legal issues that need to be carefully considered to avoid legal action. From obtaining informed consent to protecting patient data, upholding patient rights, and dealing with malpractice lawsuits, it’s important to work with a dental lawyer who can help you structure your practice to avoid problems and assist. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you.

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The Best Entity and Tax Structure for Your Dental Practice

by Brenden | Nov 20, 2022 | Business Law, Dental Law

One of the most crucial decisions when opening a dental practice is choosing the right entity and tax structure. What may seem like a simple task at first can quickly become overwhelming. There are many nuances and considerations that make it nearly impossible to select the default best choice. In this blog post, I have highlighted some practical options for small dental practices with one or two owners.

Avoid the Liability of Sole Proprietorships and General or Limited Partnerships

One of the easiest entities a person can form is a sole proprietorship. However, it offers zero protection from personal liability. That means if the business fails you’re personally on the hook. General and limited partnerships also have zero protection from personal liability.

Limited Liability Companies and Corporations afford the most protections.

For personal liability protection, it is best to form either a limited liability company (LLC) or a corporation. Both entities shield the owner(s) from the acts or omissions of the entity’s employees and other business operation liabilities. LLCs and corporations are both good choices when it comes to personal liability protection. However, they have different corporate formalities that must be followed. Corporations have more formalities, such as requirements to maintain minutes and have certain meetings, while LLCs do not have such obligations.

Understand the Tax Implications

When it comes to taxation, the entities have different requirements and implications. A partnership is a pass-through entity, which means all income, losses, and credits flow through to the partners’ individual income tax returns. However, partnerships must file a tax return even though the entity itself is not subject to tax. A C corporation is subject to double taxation, which means the corporation is taxed on all the business earnings, and those earnings are taxed again when paid out as dividends. An S corporation is subject to only one level of tax and can reduce the employment tax liability of the owners by managing their reasonable compensation in relation to the S corporation’s net-profit distributions.

For LLCs and corporations, the entities can be taxed as either a C corporation or an S corporation. However, if a dentist chooses a corporation as their entity, they must understand the corporation’s limitations in terms of tax flexibility from initial formation through to the sale of the dental practice.

Choose What Works Best for You

While there is no right or wrong answer when it comes to choosing the right entity and tax structure for your dental practice, there are clear pros and cons to each. Your choice will depend on various factors, including the number of owners, the number of dentists, business objectives, personal liability protection, and tax savings.

Consulting with an attorney to evaluate the options is a crucial step in making the best decision for you and your practice. Call our firm today at 216-644-3359 so that we can help you open your dental practice and protect your interests.