For Dentists Planning Ahead: Winding Down Your Corporation
As a dentist you are a valued member of the community. Your patients and your staff depend on you to make the right decisions. When it is time to shut one door in order to open another, there are several key steps to take. Winding down a dental practice is a huge undertaking and governmental regulations can complicate the process. If you are thinking of winding down a practice, here are some key issues to consider.
1. Do you want to sell your practice or wind it down?
You have the choice of dissolving a corporation versus converting it to a holding company. In general, the former option comes with more tax advantages. Conversely, the latter option allows for a gradual income draw plan for tax-effective distributions to heirs or charities.
2. Consult your insurance carrier
Your malpractice insurance provider will provide guidance about notifying your patients. They can also advise about tail end coverage, tell you how long to retain patient records, where the electronic medical record (EMR) will be kept and who responds to requests.
3. Notify your staff
Be sure to tell your staff as much information as is practical so that they can also make transition plans. This includes telling them if you are ending your business or selling the practice to another dentist. You will also need to address relevant employment law matters such as benefit plans, retirement funds, etc.
4. Inform your patients
Draft a written letter to patients notifying them of your intent and let them know where their records will be kept and who to contact for copies.
5. Plan for the inevitable emotional transition
Saying goodbye to a practice you have invested your heart and soul into will bring alternating feelings of happiness, anxiety, and sadness. This is normal and to be expected.
6. Plan the next steps
Your financial picture will be different after winding down your practice and Rosen Group Private Wealth Management is here to help you reassess your new wealth management goals.