5. Exiting the Partnership: One of the most difficult circumstances to deal with legally in most dental practices, which are structured in “50/50”, is the clear definition of the method and the conditions of exit. Simple situations that can be managed are death, disability and retirement, with the triggers generally final and evaluation formulas can be applied in a simple way. The real challenge is that the partners simply do not get along and cannot agree on an exit route for either partner. Most consultants do not address this most important issue, but it can be the most expensive both financially and professionally. With some careful and open discussions facilitated by your legal, tax and financial advisors, you can avoid this trap. The dental partnership agreement should address the nature of the operation that will be implemented by the partnership. It is a good idea to work with a dental CPA to deviate from this model and find an individual system for sharing the benefits and expenses of practice. The development of a strong dental partnership agreement involves the knowledge of accountants, insurance specialists and other consultants familiar with the dental industry and the pitfalls faced by most dental partnerships. 3. Dental Partnership capital contributions and distributions: Make sure you clearly define who contributes what to the dental practice and how each partner is compensated. Does each partner dentist receive compensation according to a formula? How are the remaining profits distributed? And if there is a loss at the end of the year, who and how will he catch up? These are just a few of the many questions that need to be answered about how dental practice revenues are distributed and distributed.

Any single partnership agreement must be carefully considered and carefully planned to ensure that the intention of the partners is implemented in the event of disagreement or change of circumstances. As with any formal legal agreement, there are potential risks that may arise, including disagreements and relationship breakdowns. For this reason, it is always advisable to use the help of a professional agency to establish a solid contract. A dental partnership occurs when two or more dentists, as co-owners of a dental practice, act for profit. A quasi-partnership is, in a way, seen as an agreement that is halfway between several business formats. In other words, the practice functions as a limited company on paper, but in practice it is practiced as if it had a partnership contract. For example, capital income is paid on the basis of individual income, but the profits of the associated companies are distributed equally between the partners. Dentists can, as individuals in a partnership, take possession of the property or create a professional company. Currently, California does not allow dentists to operate as an LLC. In dental partnerships, each partner is considered an “agent” of others. This means that each partner, without the agreement of the other partners, is able to enter into contracts or cede ownership of the partnership, by engaging all other partners. It is clear that in the absence of a dental partnership agreement, the practice could easily find itself in trouble.

In addition, this section should include an agreement not to compete or not to obtain or claim revenue. It can also extend to a partner who is leaving a partnership. In addition, I could propose that each dental partner form a professional company, so that his personal wealth is protected if the partnership is held responsible.