Entity Creation for Dentists

Buying or starting a dental practice is like embarking on a big, slightly terrifying adventure. It’s thrilling, but getting everything set up feels like jumping through endless hoops. Naming your practice might seem like one of the smaller tasks in the grand scheme of launching your business, but it’s actually a foundational piece of your brand and practice identity.

Take my company Copper Dental Transitions, for example. When I was starting out, it was just me, my dog Copper, and a ton of coffee. Copper was my support system during those long nights even if he didn’t offer a lot of wisdom, but he was a great listener. I wanted others to feel that they had someone in their corner like that as they navigated the complexities of owning a practice, which is how my company name came to be.

If you’re facing the naming challenge and not sure where to start, here are some tips to help you nail down the right name, make it legally official, and set your practice up for success.

Step 1: Focus on Your Brand Identity
Naming your practice isn’t just about finding something catchy, it’s about capturing the mission of your business. Think of it as the vibe you want people to associate with your practice. What do you stand for? Who do you serve? What makes you unique? These questions will help you shape a name that resonates with your audience and represents what your practice is all about.

For example, Copper Dental Transitions works for me because it’s got some of my identity in there and gets straight to the point. Dental Transitions is in the name, so people know what I do… well that still gets confused sometimes unfortunately… like just explaining you help buy and sell dental practices is hard for people to comprehend for some reason. But it is supposed to show that I help with transitioning dental practices. When coming up with your own name, think about words that represent your mission and personality.

Another tip… Keep it simple and easy to remember. Complicated names or fancy words might seem impressive, but they can be hard for clients to recall or even pronounce. Ideally you want your name to be clear, straightforward, and somewhat descriptive, especially if you’re working in a field like dentistry where people look up dentist near me. Plus the easy name is great for SEO because it makes your practice more discoverable online.

Step 2: Check for Availability
So you’ve got a name in mind, that is if you’re not using the existing one in a purchase. Awesome! But before you print it on a thousand business cards, let’s make sure you can legally use it. Unfortunately, the perfect name doesn’t do much good if someone else already thought of it first. A quick check on your state’s corporate commission website can let you know if the name is available, or if you might need to tweak it slightly.

Each state has different rules for business name availability, but most have an online search tool that is super easy to use. If your name’s already taken, you may have to get creative by adding a unique word or rearranging the name. This process may seem tedious, but it’s essential if you want to avoid any future legal issues.

And while you’re at it, it’s a good idea to check domain name availability as well. Even if you’re not planning to build a website right away, locking down your domain name early is smart. You’ll want your website URL to match your business name or what you do as closely as possible for consistency and professionalism.

Step 3: Establish Legal Formation – PLLC, DBA, and EIN
Once you have your name, it’s time to make things official. This step may sound like it’s reserved for people who read legal jargon for fun, but don’t worry because I’ll break it down for you. There are three main things you need to set up: your PLLC, your DBA, and your EIN.

PLLC or LLC
For many licensed professionals like dentists, forming a PLLC (Professional Limited Liability Company) is a popular choice. A PLLC offers the same legal protection as an LLC but is specifically designed for professionals with state regulated licenses. So if something goes wrong, your personal assets are typically protected. I’m not a lawyer, just my opinion from doing this every day.

If you’re wondering why I didn’t name my business Copper Dental Transitions PLLC, it is because my official business name is Womeldorff PLLC due to my commercial real estate license, but I operate under a DBA (Doing Business As) name. In many states, including Arizona where I live, it is required to have your commercial real estate license to do practice sales. Some brokers still do It anyway without one, but I like to play by the rules just like I wouldn’t want a dentist without a license working on my mouth even if they knew what they were doing. Back to the DBA though, think of it as a business nickname or what you’re known by in the market, even though your legal entity name might be a bit different.

DBA (Doing Business As)
Setting up a DBA is super straightforward and usually inexpensive. It lets you operate under a different name than your legal business name, which is great if you want to use a specific name for branding purposes. For instance, Copper Dental Transitions is my DBA, which cost me about $10 to set up for five years, and I could technically have as many DBAs as I want… but let’s not get carried away. If you’re buying an existing practice, don’t forget to transfer the trade name over to yourself as well. This ensures you’re legally able to operate under that practice’s established name and is very common in every deal even if you don’t plan on using it.

EIN (Employer Identification Number)
Finally, there’s the EIN (Employer Identification Number), or sometimes called a TIN (Tax Identification Number). This is essentially a social security number for your business, issued by the IRS. You’ll need it to file taxes, hire employees, and open a business bank account. Fortunately, applying for an EIN is quick and free. So if someone tries to charge you $500 to do it, it is a ripoff because it takes literally about 45 seconds to do on the IRS website. Once you have your PLLC and DBA set up, obtaining your EIN should be next on your list, as it’s essential for all other business operations.

Don’t Overthink It, but Choose Wisely
Naming your practice and making it official is a big deal, but don’t let yourself get too caught up in finding the perfect name. A good name is one that resonates with you, represents your brand, and is available legally. Beyond that, remember that the name itself is just one piece of the puzzle as you’ll have plenty of other important decisions to make along the way during the crazy transition times.

If you’re feeling inspired and want to learn more about the ins and outs of practice ownership, I represent dentists across the country who want support when buying or starting their practice. I’m here to help you navigate the journey.

Kyle Womeldorff
480-690-5200
info@dentalbroker.com

Check out my YouTube video for this topic at: How to name your practice with a PLLC, DBA, and EIN