DDSWhat are the steps to start a dental practice?
An owner needs an active state dental license, a business entity, an organizational NPI from the federal provider registry, a leased or purchased site with build-out permits, financing, equipment, staff and payer credentialing. The first four steps each create a public record, which is why new practices appear in facilities signals and corporate filings.
How is a new practice financed?
Practice lenders and the SBA commonly finance new practices. The SBA describes 7(a) as its primary program for long-term financing for a variety of purposes, and states the maximum 7(a) loan amount is $5 million. Terms, collateral and the owner’s plan vary, so a CPA and a lender should review any budget.
How do you choose a location?
Owners weigh dentist supply, unmet need, growth and competition. HRSA designations show need: 7,443 dental shortage area designations covered 63,700,964 people at the end of 2025, per KFF. Need in an area does not guarantee demand for one practice, so local research matters; see dental shortage areas.
Is it better to start a practice or buy one?
Starting avoids paying for goodwill but takes time to build patients and cash flow; buying brings both from the first day at a price. TUSK Practice Sales cited dental practice valuations of 5x to 9x+ EBITDA in 2026. Associate-to-owner paths compares buy-ins, purchases and start-ups.
Related guides: what drives practice value, dental practice succession planning, the options for exiting a practice.
About 16.1% of U.S. dentists were DSO-affiliated in 2024; see how consolidated dentistry is and dentist retirement statistics. New entities and licenses are among the dental transition signals that DDSIntel reads in aggregate.
Frequently asked questions
How do I start a dental practice?
Hold a state license, form an entity, obtain an NPI, secure a site and permits, arrange financing and equipment, hire staff and credential with payers.
What public records does a new practice create?
Typically an entity filing, a provider registry entry, license records at the address and a county build-out permit.
Is a new practice cheaper than buying one?
It avoids paying for goodwill but takes longer to become profitable; a CPA can model both for a specific market.
Do DSOs open new offices?
Many do, which adds competition for sites and staff; see consolidation and DSOs.
Sources
- ADA Health Policy Institute. Dental practice research. ada.org.
- U.S. Small Business Administration. 7(a) loans. sba.gov.
- HRSA, via KFF State Health Facts. Dental Care Health Professional Shortage Areas (HPSAs), as of December 31, 2025. kff.org.
- TUSK Practice Sales, via PR Newswire. TUSK Practice Sales assesses the state of the dental industry in its Q3 2026 dental market report (July 10, 2026). prnewswire.com.
- ADA Health Policy Institute. The dentist workforce. ada.org.
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