Starting your dental business uof md presentation

Starting Your Dental Business

Presented to University of Maryland School of Dentistry

Advanced General Dentistry Residents

Larry S. Goldberg, DDS, CPA, CVA

Larry S. Goldberg, DDS, CPA, CVA

Larry S. Goldberg, DDS, CPA, CVA

What are your Plans? Starting a practice?

Associating?

Military?

Academics/research?

Cash Flow and Debt

“Students who graduate…from public schools paid an average of $124,397 for their education, while those in private schools paid $223,788.”

- ADANews, September 5, 2011

Cash Flow Key Metrics Core Expenses- ratios to

watch Financing, borrowing money,

niche lenders Paying down debt and

profitability

Create a Strong Team

Accountant Lawyer Insurance advisor Banker

Create a Strong Team

Your accountant will help you with:

Entity selection and tax implications Projections

• Feasibility of business opportunities• Be wary of brokers selling practices

Taxes- payroll, income, corporate Record Keeping Obtaining federal and state ID numbers

Create a Strong Team

Your lawyer will help you with:

Negotiating contracts• Leases• Buy/sell• Partnership• Employment

Create a Strong Team

Your insurance advisor will help you with:

Personal disability Life Malpractice Office overhead Workers’ compensation Health Long term care

Create a Strong Team

Your banker will help you with:

Financing Banking services

Entity Selection…and taxes

Sole Proprietor• Self-employment tax• No owner salary• Estimated taxes

Entity Selection…and taxes

LLC (limited liability corporation)• Self-employment tax• No owner salary• Estimated taxes• Corporate protection

Entity Selection…and taxes

S Corporation• Payroll taxes and withholding• Owner takes a salary• Distributions• Corporate protection

Record KeepingINTERNAL RECORDS INFORMATION FOR CPA

Patient information• Charges• Payments• Adjustments• Treatment notes

Human resources related records

QuickBooks files Self recorded or Use bookkeeper/CPA Payroll records Large equipment

purchases Financing terms

Employees

I have employees. What do I need to know??

Paperwork and forms (W-4 and I-9) DIY or payroll service? Employment manual or

handbook Employee benefits and

retirement plans

Depreciation

Dental practices are very equipment intensive. You can depreciate this equipment over time.

Current tax law allows accelerated depreciation on equipment purchases.

DepreciationWHAT IS DEPRECIABLE?

WHAT IS AN EXPENSE ITEM?

Dental equipment Computers Cabinets Furniture and fixtures Improvements

Dental supplies Lab costs Rent Employee salaries Normal and reasonable

cost incurred in a business

Tax Reporting As a service business a dental

practice will use Cash Basis accounting for tax reporting

Personal Financial Planning

Retirement and financial planning from the start.

Questions?

Larry S. Goldberg, DDS, CPA, CVA

410-356-1000

Larry.goldberg@glassjacobson.com

www.glassjacobson.com