• Skip to main content
  • Skip to primary sidebar

NC Planning

Providing Proactive and Invaluable Legal Planning

Schedule Consultation

919.900.4720

  • About Us
    • Our Mission
    • Meet Our Team
  • For Businesses
    • Business Law
      • Asset Protection
      • Business Start-Ups
      • Contracts
    • Business & Corporate Planning
    • Commercial Real Estate
    • Mergers & Acquisitions
    • Professional Practice Planning
      • For Dental Practices
      • For Healthcare Practices
      • For Veterinary Practices
      • For Law Firms
    • Succession Planning
    • Tax Planning
    • Trademark Licensing
  • For Individuals
    • Comprehensive Estate Planning
      • Trusts
      • Wills
      • Power of Attorney
      • Revocable Trusts
      • Estate Planning For Minor Children
    • Estate & Trust Administration
    • High-Net-Worth Estate Planning and Administration
    • Charitable Planning
    • Special Needs Planning
    • Elder Law
  • Resources
    • Testimonials
    • FAQs
    • Events
      • Past Webinars
    • Newsletter
    • Online Forms
    • Videos
    • Webinars on Demand
    • Our Blog
    • Common Legal Terms
    • Make a Payment
  • Contact
    • Schedule A Consultation
  • Areas We Serve
    • Asheville, NC
      • Asheville, NC Estate Planning Lawyers
      • Asheville, NC Trust Lawyers
      • Asheville, NC Will Lawyers
    • Black Mountain, NC
      • Black Mountain, NC Estate Planning Lawyers
      • Black Mountain, NC Trust Lawyers
      • Black Mountain, NC Will Lawyers
    • Cary, NC
      • Cary, NC Business Plan Formation Lawyers
      • Cary, NC Estate Planning Lawyers
      • Cary, NC Trust Lawyers
      • Cary, NC Wills Lawyers
    • Raleigh, NC
      • Raleigh, NC Business Plan Formation Lawyers
      • Raleigh, NC Estate Planning Lawyers
      • Raleigh, NC Trust Lawyers
      • Raleigh, NC Wills Lawyers
    • Wilmington, NC
      • Wilmington, NC Estate Planning Lawyers
      • Wilmington, NC Trust Lawyers
      • Wilmington, NC Business Plan Formation Lawyers
      • Wilmington, NC Will Lawyers
    • Greensboro, NC
      • Greensboro, NC Business Plan Formation Lawyers
      • Greensboro, NC Estate Planning Lawyers
      • Greensboro, NC Trust Lawyers
      • Greensboro, NC Will Lawyers
    • Charlotte, NC
      • Charlotte, NC Business Plan Formation Lawyers
      • Charlotte, NC Estate Planning Lawyers
      • Charlotte, NC Trust Lawyers
      • Charlotte, NC Will Lawyers
    • Durham, NC
      • Durham, NC Business Plan Formation Lawyers
      • Durham, NC Estate Planning Lawyers
      • Durham, NC Trust Lawyers
      • Durham, NC Will Lawyers
    • Mecklenburg County, NC
      • Mecklenburg, NC Business Plan Formation Lawyers
      • Mecklenburg County, NC Estate Planning Lawyers
      • Mecklenburg County, NC Trust Lawyers
      • Mecklenburg, NC Will Lawyers
    • Orange County, NC
      • Orange County, NC Estate Planning Lawyers
      • Orange County, NC Will Lawyers
    • Union County, NC
      • Union County, NC Estate Planning Lawyers
      • Union County, NC Trust Lawyers
      • Union County, NC Business Plan Formation Lawyers
      • Union County, NC Will Lawyers
    • Wake County, NC
      • Wake County, NC Estate Planning Lawyers
      • Wake County, NC Will Lawyers
    • Woodfin, NC
      • Woodfin, NC Estate Planning Lawyers
      • Woodfin, NC Will Lawyers

Google Reviews Link

+175

When To Bring An Associate On Board (Part 3)

Home » Our Blog » When To Bring An Associate On Board (Part 3)

Structuring The Agreement

When the time comes to hire an associate, it is very important to have a written employment contract. Terms will vary, of course, but having a written contract will protect both parties. From the practice’s perspective, it is important to consider both short-term and long-term goals. Depending on the practice owner’s goals, including equity incentives may make sense. Forming the employment relationship as an Equity Associate structure commits both the primary dentist and associate to a future transfer of partial or full ownership of the practice. That commitment requires the primary dentist and associate to have a mutual respect for one another and similar philosophy regarding patient treatment and practice management. There should be open and continuous communication. There is a number of ways to arrange the ownership transfer, but the contract must clearly define the terms and conditions of the transition, including the deferral period, which is the time between the effective date of the contract and the date of the buy-in or buy-out. The scope of responsibilities and roles of the primary dentist and associate during the deferral should be identified and the agreement should provide an exact formula for the price identified in the contract.

Compensation is another key term, one that should take into account competitive draws to qualified candidates as well as the budgetary concerns of the practice. For part-time associates, per diem rates are common; meanwhile full-time associates are compensated with a periodic salary. Compensation may be structured as a monthly draw, which is a monthly salary that is not guaranteed, but rather an advanced payment for future services rendered. The draw is then credited against a commission agreement. Compensation for “sweat equity” the associate contributes to the practice beyond production at the time of contract may also be addressed. If so, it should not be dollar for dollar because the excess production would not have been possible without the initial opportunity provided by the primary dentist. In addition, full-time associates may be compensated with fringe benefits, such as health insurance, continuing education classes, malpractice insurance coverage, dues and fees for associations and organization membership, and vacation and sick leave. It is important to note that the associate cannot take a personal deduction for the insurance, but the practice can. The contract should also include non-competition and non-solicitation clauses to protect both the practice owner and the associate.

Conclusion

In conclusion, there can be any number of reasons to bring on an associate. Clinical overload is certainly one of the most important. Regardless of the reason, though, a practice owner should consider his or her specific needs, goals and concerns and be sure to have a good, solid employment contract to use when the time comes. As far as clinical overload is concerned, please see our Clinical Overload Review Checklist for a helpful guide in analyzing whether your practice may need an associate doctor employee. Of course, please discuss any concerns you may have with your legal, accounting and other advisors.

Primary Sidebar

Get Started Today!

  • This field is for validation purposes and should be left unchanged.
  • By checking this box, I consent to receive transactional SMS messages and phone calls from NC Planning related to my inquiry, webinar registration, appointment, or other services I have requested. These communications may include registration confirmations, webinar reminders, appointment reminders, event updates, access information, and follow-up resources. Please note, users may receive follow-up communications from a member of our team and/or an AI assistant. Message frequency may vary. Message and data rates may apply. Reply HELP for assistance or STOP to opt out at any time. SMS consent is not required to register for the webinar or receive legal services. Privacy Policy & Terms.
  • This field is hidden when viewing the form

Testimonials

Felt as though my needs were handled in a most professional manner. Their team was courteous, friendly, and helpful all along the way. I would especially like to commend Michelle for her terrific guidance throughout the process. NC Planning is truly the go-to group for your professional legal nee...
Read All Testimonials

Business Planning

  • Professional Practice Planning
  • Business Planning for Dentists
  • Business Planning for Healthcare
  • Business Planning for Veterinary Practices
  • Business Planning for Law Firms
  • Business Law
  • Mergers & Acquisitions
  • Asset Protection
  • Start-Ups and Formation
  • Business Contracts
  • Succession Planning
  • Tax Planning
  • Trademark Licensing

Personal Planning

  • Comprehensive Estate Planning
  • Trusts
  • Revocable Trusts
  • Wills
  • Power of Attorney
  • Estate Planning for Minor Children
  • Estate Administration
  • Charitable Planning
  • Special Needs Planning
  • Medicaid Planning
  • Elder Law
  • High-Net-Worth Estate Planning

5000 Centregreen Way, Suite 500
Cary, NC 27513

(919) 900‑4720 clientservices@ncplanning.com

4801 Glenwood Ave Suite 200-10
Raleigh, NC 27612

(919) 568-3681 clientservices@ncplanning.com

806 Green Valley Road, Suite 200
Greensboro, NC 27408

(336) 932-8355 clientservices@ncplanning.com

1209 Culbreth Dr., #211
Wilmington, NC 28405

(919) 887-7341 clientservices@ncplanning.com

Connect With Us

Copyright © 2026 NC Planning
Disclaimer Privacy Policy

 

Mailing Address
127 W Hargett St, Ste 301, PMB 190 Raleigh, NC 27601

  • About Us
    • Our Mission
    • Meet Our Team
  • For Businesses
    • Business Law
      • Asset Protection
      • Business Start-Ups
      • Contracts
    • Business & Corporate Planning
    • Commercial Real Estate
    • Mergers & Acquisitions
    • Professional Practice Planning
      • For Dental Practices
      • For Healthcare Practices
      • For Veterinary Practices
      • For Law Firms
    • Succession Planning
    • Tax Planning
    • Trademark Licensing
  • For Individuals
    • Comprehensive Estate Planning
      • Trusts
      • Wills
      • Power of Attorney
      • Revocable Trusts
      • Estate Planning For Minor Children
    • Estate & Trust Administration
    • High-Net-Worth Estate Planning and Administration
    • Charitable Planning
    • Special Needs Planning
    • Elder Law
  • Resources
    • Testimonials
    • FAQs
    • Events
      • Past Webinars
    • Newsletter
    • Online Forms
    • Videos
    • Webinars on Demand
    • Our Blog
    • Common Legal Terms
    • Make a Payment
  • Contact
    • Schedule A Consultation
  • Areas We Serve
    • Asheville, NC
      • Asheville, NC Estate Planning Lawyers
      • Asheville, NC Trust Lawyers
      • Asheville, NC Will Lawyers
    • Black Mountain, NC
      • Black Mountain, NC Estate Planning Lawyers
      • Black Mountain, NC Trust Lawyers
      • Black Mountain, NC Will Lawyers
    • Cary, NC
      • Cary, NC Business Plan Formation Lawyers
      • Cary, NC Estate Planning Lawyers
      • Cary, NC Trust Lawyers
      • Cary, NC Wills Lawyers
    • Raleigh, NC
      • Raleigh, NC Business Plan Formation Lawyers
      • Raleigh, NC Estate Planning Lawyers
      • Raleigh, NC Trust Lawyers
      • Raleigh, NC Wills Lawyers
    • Wilmington, NC
      • Wilmington, NC Estate Planning Lawyers
      • Wilmington, NC Trust Lawyers
      • Wilmington, NC Business Plan Formation Lawyers
      • Wilmington, NC Will Lawyers
    • Greensboro, NC
      • Greensboro, NC Business Plan Formation Lawyers
      • Greensboro, NC Estate Planning Lawyers
      • Greensboro, NC Trust Lawyers
      • Greensboro, NC Will Lawyers
    • Charlotte, NC
      • Charlotte, NC Business Plan Formation Lawyers
      • Charlotte, NC Estate Planning Lawyers
      • Charlotte, NC Trust Lawyers
      • Charlotte, NC Will Lawyers
    • Durham, NC
      • Durham, NC Business Plan Formation Lawyers
      • Durham, NC Estate Planning Lawyers
      • Durham, NC Trust Lawyers
      • Durham, NC Will Lawyers
    • Mecklenburg County, NC
      • Mecklenburg, NC Business Plan Formation Lawyers
      • Mecklenburg County, NC Estate Planning Lawyers
      • Mecklenburg County, NC Trust Lawyers
      • Mecklenburg, NC Will Lawyers
    • Orange County, NC
      • Orange County, NC Estate Planning Lawyers
      • Orange County, NC Will Lawyers
    • Union County, NC
      • Union County, NC Estate Planning Lawyers
      • Union County, NC Trust Lawyers
      • Union County, NC Business Plan Formation Lawyers
      • Union County, NC Will Lawyers
    • Wake County, NC
      • Wake County, NC Estate Planning Lawyers
      • Wake County, NC Will Lawyers
    • Woodfin, NC
      • Woodfin, NC Estate Planning Lawyers
      • Woodfin, NC Will Lawyers