One of the most exciting (and legally complex) moments is when a dental practice owner is ready to grow. Whether that means adding a new location, bringing on a partner, or investing in new technology, here are key legal insights to help you scale confidently and compliantly.
Adding a New Location
Opening a second (or third) office is more than just signing another lease. Here is what to consider:
Ensure your business structure (e.g., LLC, PC, S-Corp) is optimized to handle multiple locations, revenue streams, and risk separation. You may need a holding company model or multiple entities for liability protection.
- Real Estate Due Diligence
Negotiate favorable lease terms specific to dental practices—look for build-out allowances, exclusivity clauses, and early termination options. If purchasing, use a separate LLC to hold the real estate and lease it back to the practice.
Each location must meet local and state dental board regulations. Don’t assume your license automatically covers a new site.
Bringing On a Partner or Associate
Growth often means adding talent—but the legal setup is everything.
Clearly define roles, ownership percentages, buy-in/buy-out terms, voting rights, and profit-sharing. Without this, you risk disputes that can dissolve the practice.
Whether the new provider is an employee or independent contractor, agreements should address:
- Compensation model (production vs. collections)
- Restrictive covenants (non-compete, non-solicitation)
- Malpractice coverage and tail policy responsibilities
- Termination procedures and notice requirements
If the partner is a future successor, consider a phased equity plan or buy-sell agreement to ensure a smooth ownership transition.
Investing in New Technology
From digital scanners to AI diagnostics and cloud-based systems, tech can dramatically improve care—but it introduces legal complexity.
Watch for:
- Hidden auto-renewal clauses
- Lack of support/service guarantees
- Data ownership rights
- Termination penalties
Ensure any new software or system complies with HIPAA and that Business Associate Agreements (BAAs) are in place with vendors handling protected health information (PHI).
- Return on Investment (ROI) Protection
Consider service-level agreements (SLAs) and performance benchmarks before major tech investments.
Tip from Oberman Law
Before you scale, slow down and strategize. Growth done right improves profitability and long-term value. Growth done hastily creates legal liabilities and operational headaches.
How We Help
Oberman Law Firm specializes in dental practice growth and transitions. Our services include:
- Drafting and reviewing associate and partnership agreements
- Structuring multi-entity practices
- Dental-specific lease negotiation
- Regulatory compliance for new tech and locations
- Succession planning & exit strategy legal guidance
Let’s Talk Growth
Thinking about expanding? Schedule a confidential strategy session with our dental legal team. We will help you avoid costly mistakes and scale with confidence.