If you’re a licensed dentist in North Carolina looking to start your own practice, forming a Professional Limited Liability Company (PLLC) is often the preferred business structure. A PLLC offers the liability protection of a traditional LLC while complying with North Carolina laws governing licensed professionals. In this blog, we will walk you through the key steps to forming a PLLC for a dentistry practice in North Carolina and the important considerations to keep in mind along the way.
What is a PLLC?
A PLLC is a special type of limited liability company specifically designed for licensed professionals, including dentists, doctors, lawyers, and other regulated occupations. In North Carolina, only licensed professionals can form a PLLC, and all members (owners) of the PLLC must be licensed by the applicable state licensing board in the same profession. North Carolina does not permit ordinary LLCs to render professional services and thus licensed professionals intending to form a business engaging in their licensed profession must use a PLLC.
Step 1: Confirming Eligibility
Only dentists who are licensed in the state of North Carolina can form a PLLC here. So, the first step for dentists forming a PLLC, of course, is to ensure that they are licensed in the state. The North Carolina State Board of Dental Examiners oversees licensing requirements and provides information on how to obtain a license. More information on license approval, requirements, and PLLC’s can be found on the North Carolina Dental Board’s website at the following link.
Step 2: Choosing a Name for Your Practice
Your PLLC name must comply with certain rules and is specifically governed by Chapter 55B and Chapter 57D of North Carolina General Statutes. In North Carolina, the name of your PLLC must:
- Include in the name “Professional Limited Liability Company” or an abbreviation like “P.L.L.C.;”
- Include your surname;
- Clearly reflect the dental services you are providing;
- Not include descriptive phrases; and
- Not include language that could be misleading to the public.
Before settling on a name, it is recommended to search with the Secretary of State to ensure that your desired name is available.
Step 3: Obtain a Certificate of Licensure from the Dental Board
Before filing your Articles of Organization, you must obtain a Certificate of Licensure from the North Carolina State Board of Dental Examiners. This certificate verifies that all members of the PLLC are licensed to practice dentistry in North Carolina.
To initiate this process:
- Fill out an application for Certification of Licensure: The North Carolina State Board of Dental Examiners provides an application to obtain a Certificate of Licensure on their website and can be found here.
- Fax or email the completed application to the NC Dental Board: Before sending the application, ensure that the name is written and spelled correctly and include punctuation exactly as it will appear on the Articles of Organization. Email and fax contact information can be found at https://www.ncdentalboard.org/
- Wait to receive approval from the Dental Board: The Dental Board will issue a package that will include a certificate of licensure, an application for certificate of registration for a professional limited liability company, and the Board’s rules for companies in North Carolina.
Step 4: File Articles of Organization with the Secretary of State
Once you have obtained the Certificate of Licensure, you can file your Articles of Organization with the North Carolina Secretary of State. These documents officially create your PLLC.
Your filing should include:
- Your PLLC’s name and principal office address.
- The name and address of your registered agent.
- A statement that the PLLC is being formed to provide professional dental services.
- The Certificate of Licensure from the Dental Board.
The filing fee is currently $125. You can file online or submit your paperwork by mail. Al forms and additional information about forming a PLLC can be found on the Secretary of State’ website.
Step 5: Forward your Filed Articles of Organization to the NC Dental Board
Once the Secretary of State has approved and filed your Articles of Organization for your PLLC, you must forward the following items to the North Carolina State Board of Dental Examiners within 10 business days from the date of filing:
- A copy of the filed Articles of Organization
- The application for Certificate of Registration for a PLLC
- The $50 filing fee.
Once all information is received, the NC Dental Board will forward a Certificate of Registration, which displays the PLLC name and registration date.
Step 6: Draft an Operating Agreement
Even if you are a solo practitioner, it’s advisable to have an Operating Agreement in place. This internal document outlines how the PLLC is managed, how profits are distributed, procedures for adding or removing members, and other operational details. While not filed with the state, it can be a helpful tool for all business owners to help prevent misunderstandings in the future.
Step 7: Obtain an EIN
After forming your PLLC, you should apply for an Employer Identification Number (EIN) from the IRS. This number is necessary for tax filings, opening a business bank account, and hiring employees.
Step 8: Maintain Compliance
After your PLLC is formed, there are ongoing responsibilities to ensure compliance such as Annual Reports filed with the Secretary of State, License Renewals to keep both your dental license and your PLLC’s registration with the North Carolina Dental Board current, and Professional Standards to abide by and to ensure the business practices comply with Board regulations.
Final Thoughts
Forming a PLLC is a crucial step in launching your own dental practice. North Carolina has specific rules for professional entities, and working with an attorney familiar with these requirements can streamline the process and help you avoid potential pitfalls.
If you are ready to take the next step toward building your own dental practice, Revolution Law Group can guide you through the process — from coordinating with the Dental Board to filing your paperwork with the Secretary of State. Contact us today to schedule a consultation.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.