Advantages of Dental Practice Ownership

At some point in your dental career, you may consider buying a dental practice or starting your own. Practice ownership has many benefits, which we will outline in more detail.

Autonomy

Associate dentists’ decisions are always influenced by someone else. On the other hand, dental practice owners enjoy complete autonomy and flexibility in their clinical, personal and professional decisions.

Clinical Autonomy

As a practice owner, you would have the ability to choose which patients you see and plan their treatment as you see fit. You would also be able to choose your own lab and supplies.

Personal Autonomy

When you work as an associate, you have little control over your work schedule. Practice ownership provides you with the freedom to choose the days and hours you will practice. You can also take vacations as you please and better balance your work/home life.

Professional Autonomy

Practice owners oversee all business investments and decisions, including marketing, technology and staffing. You get to pick your own staff and fire employees, if needed. You also have the ability to create a training and bonus program to motivate employees and ensure your team’s success.

Equity

Similar to paying off a home mortgage, you will pay a monthly amount towards your practice loan, which creates equity. Most standard dental loans include 10-year terms, so you’ll likely own your business outright in a relatively short time frame. Your asset will likely appreciate in value, and you will reap the financial benefits when you decide to sell (assuming you don’t take on any additional debt).

Associate dentists miss out on these opportunities to create equity. Instead, when you are a quality associate, your hard work increases the value of someone else’s practice. 

Tax Benefits

The government rewards business owners with tax benefits. After you purchase a practice, you can take tax deductions for the next 5-15 years. Depending on the purchase amount, over time your tax reduction may be significant, even up to a third of your overall purchase price!

Practice ownership may also provide tax benefits in the form of structuring retirement plans, such as 401Ks, pension plans and cash balance plans. Your owner discretionary expenses (meals, travel, continuing education, etc.) are also tax deductible. Many practice owners pay a lower overall tax rate than their employees who make a similar income.

In summary, practice ownership has many advantages. If you’re looking to purchase a practice, please check out our practice buyer FAQs and our current practice listings. If you’re looking to start your own practice, please visit our website to learn more or contact a member of our team.