Incorporation is a very important step for healthcare professionals. 

The two most important reasons for forming a corporation are to limit liability and take advantage of tax savings. Although incorporating does not protect a health care provider from malpractice lawsuits, a corporation will limit a dentist or physician's exposure to only the corporation's assets. If a corporation is not properly formed and/or the corporate veil is pierced, a court can choose to disregard the corporate entity and allow enforcement of a judgment against a health care provider's personal assets. Consequently, proper setup of a corporation is vital to maintaining limited liability protection. Incorporation also enables a healthcare professional to benefit from tax savings.

Health care professionals, such as dentists and physicians, can choose between an S corporation or C corporation designation, depending on the tax benefits of each entity form. Regardless of the corporate form, incorporation is crucial to protecting oneself from certain liability and the benefits of tax savings.