More About Professional Corporations
For many years, dental hygienists in California have longed for more opportunities for professional and financial growth. This is why many of them have wanted to pursue starting their own business. Is it possible to start a dental hygiene alternative practice? More importantly, can dental hygienists work without a dentist in California? Our in-house corporate attorneys share their expertise on this matter.
Can a Dental Hygienist Work Without a Dentist in California?
Yes! The good news is that dental hygienist can now start their own private practice in California! It was on January 1, 2016, that the Moscone-Knox Professional Corporation Act Sections 13401 and 13401.5 allowed all Registered Dental Hygienists in Alternative Practice (RDHAP) to start their own professional corporations.
What is the Scope of Practice of an RDHAP in their Professional Corporation?
According to the Business and Professions Code, dental hygienists may only provide their services to patients in dental hygiene alternative practice settings. These patients are required to present a prescription for dental hygiene services from a licensed dentist or doctor in California. The validity of the prescription depends on the judgment of the issuing dentist or physician and surgeon, but not to exceed two years from when it was issued.
What is a Registered Dental Hygienist in Alternative Practice Corporation?
A registered dental hygienist in alternative practice (RDHAP) corporation is a type of professional corporation that is registered with the California Secretary of State. This corporation provides professional RDHAP services.
Which Government Agency in California Regulates Dental Hygienist Corporations?
According to the California Corporation Code §13401(b), all professional corporations must abide by the rules and regulations of the respective government agencies that manage their profession. As for RDHAP corporations, it is the Dental Board of California that regulates them.
What Laws and Codes Should a Dental Hygienist Abide by so That They Can Work Without a Dentist in California?
The following laws and codes must be followed by all professional dental hygiene corporations registered in California:
- California Corporations Code – §13401(b)
- Business and Professions Code – the part for Registered Dental Hygienists in Alternative Practice Corporations is found in the California Business and Professions Code starting with Section 1967.
How to be a Shareholder in a Professional Registered Dental Hygienist in Alternative Practice Corporation?
A corporation cannot exist without shareholders. The following allied professionals can be shareholders in a professional registered dental hygienist in an alternative practice corporation:
- Licensed dentists,
- Registered dental assistants, and
- Registered dental hygienists.
Are Dental Hygienists Allowed to be a Shareholder in More than One RDHAP Professional Corporation?
In the pursuit of wider opportunities and bigger financial gains, some dental hygienists in California want to be a shareholder in more than one RDHAP corporation. California Law allows these registered dental hygienists to own stocks in more than one professional RDHAP corporation.
Who Can Serve as an Officer or Director in an RDHAP Corporation?
The officers and directors of an RDHAP corporation, except for the assistant secretary and assistant treasurer, must be registered dental hygienists in alternative practice. There are, however, exceptions to the rule. If there is only one shareholder in the company, that same shareholder may serve as both the president and treasurer of the corporation, and all other offices may not necessarily be licensed individuals. In cases where are only two shareholders, those two shareholders shall among themselves fill the offices of president, vice president, secretary, and treasurer.
Is there a Standard to Follow When Naming Professional RDHAP Corporations in California?
Yes, there are name style formalities that need to be followed when naming professional RDHAP corporations. RDHAP corporations must use a business name that includes one of these titles: “dental hygiene group,” “dental hygiene office,” or “dental hygiene practice.” The business name should also contain the surname of one or more of its past or present associates, partners, stockholders, or members.
Are RDHAP Corporations Allowed to Operate Using a Fictitious Business Name?
Yes! RDHAP corporations are allowed to use a fictitious business name or a “Doing Business As” name. A dental hygienist corporation that conducts business under a fictitious business name must not use any name that is false, misleading, or deceptive.
What are the Requirements for a Fictitious Name Permit?
A Fictitious Name Permit must be obtained from the Dental Hygiene Committee of California (DHCC). These are the requirements:
- A completed application
- Application fee and license fee (both are non-refundable)
Pursuant to the Business and Professions Code, an RDHAP corporation can be granted a Fictitious Name Permit if:
- The applicants must be licensed RDHAPs.
- The place where the business stands must be either owned or leased by those applying for the permit. Moreover, the dental hygiene alternative practice settings must be owned by the applicants and is an approved area for practice pursuant to Section 1926.
- The same name style rules for an RDHAP corporation business name apply to fictitious business names. The fictitious name must conform with Section 651 and not violate the subdivisions (I)and (l) of Section 1950.5.
Here are a few examples of names that are allowed:
- Green Meadows Dental Hygiene Office, of John Piper, RDHAP
- XLM Dental Hygiene Practice of John Piper, RDHAP
- John Piper, Dental Hygiene Group
For more instructions on the application for Fictitious Name Permit, click here!
Is it Necessary to Inform the Dental Board of California if an RDHAP Corporation Changes Its Business Name?
Yes. If there is a change in the corporation’s name or if it decides to use a fictitious business name, the Dental Board of California must be informed.
Does an RDHAP Corporation Need to Obtain a Certificate of Registration?
No. RDHAP corporations are not required to register with the Dental Board of California.
Client Question: What type of business entity should an RDHAP form?
Incorporation Attorney Specializes in Forming RDHAPs in California!
If you and your colleagues are planning to start your own dental hygiene alternative practice corporation, you need a corporate lawyer to help you. Incorporation Attorney is well-experienced in helping RDHAPs form registered dental hygienists in alternative practice corporations in California. Give us a call today! Dial +1 (714) 634-4838!