In 2014, average practice overhead excluding owners’
salaries was:
- $385,000 for general practice
- $463,050 for specialty practices
- $400,010 average for both groups combined
At the beginning of World War II in 1941, the minimal
requirement for being declared dentally fit for military service was 12
functional teeth. By late 1943, this
requirement was dropped because too few prospective military members met
it. Dentistry has served our population
well during the interim so that a majority of the U.S. population now keeps
functioning teeth for a lifetime.
The average age of retirement for dentists has risen from
64.8 years in 2001 to 68.7 years in 2013.
The number of practicing dentists in the U.S. is projected to reach
201,834 by 2018, up from 195,202 in 2013.
Average staff salary percentages compared to practice
collections in 2015:
- General Dentistry – 25%
- Pediatric Dentistry – 25% - 28%
- Periodontics – 22%
- Orthodontics – 20 –22%
- Oral Surgery – 18%
- Endodontics – 16%
Most incorporated private practices have converted from “C”
corporations to “S” corporations due to tax advantages. The less than 10% of remaining C corps are
group practices. The C corps status may
mean double taxation on annual profits distributed to owners as income while
being taxed to the corporation as profit.
Taxes on the sale of C corps are more complex, and C corps cannot
distribute practice profits as dividend distributions, free of payroll taxes,
like an S corps can do. Further, recent
tax law changes have reduced the waiting period for selling a
recently-converted corporation (from C corp to S corp) from 10 years to 5
years. If yours is still a “C”
corporation, talk to your accountant and attorney about the wisdom of
converting to a Subchapter S corporation.
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