Why NYC Dental Practices Need a Specialized CPA
Practicing dentistry in New York City costs more than almost anywhere else in the country. Rent is higher. Payroll is higher. The city adds its own layer of business tax that dentists in the rest of the state never see.
That's why a practice here can grow production every year and still take home less.
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MRL Advisory Group is a dental-focused CPA and advisory firm. We help New York dentists understand their numbers, keep more of what they earn, and make major decisions with the math done in advance.
New York City Taxes Most Dentists Don't Plan For
Most tax advice written for dentists covers federal and state tax. In New York City, that leaves out taxes that can cost a practice owner thousands of dollars a year.
Sole Proprietor
Unincorporated Business Tax
Smaller liabilities receive a credit, and NYC residents may get a partial credit on their personal return.
PLLC Taxed as a Partnership
Unincorporated Business Tax
NYS PTET is available, and the NYC PTET may be available for city-resident entities.
PC or PLLC with S Election
General Corporation Tax
NYC doesn't recognize the S election. NYS PTET is available, and the NYC PTET may be available for city-resident S corporations.
NYC Doesn't Recognize Your S Corporation Election
The S election is common advice for dentists because it can reduce self-employment tax. New York City doesn't recognize it, so a city S corporation pays the General Corporation Tax. The federal savings may still justify the election, but only if the city cost is counted. For a full comparison, read S-Corporation vs. LLC for Dental Practices: Which Saves More for Tax?
The Unincorporated Business Tax
Dentists practicing as sole proprietors, or through a PLLC taxed as a partnership, owe NYC's UBT. Credits for smaller liabilities and for NYC residents change the math, so the right structure depends on your income, where you live and how you pay yourself.
Two Pass-Through Entity Tax Elections
New York State's PTET lets a practice pay state tax at the entity level and deduct it federally. City-resident entities that make the state election may also elect the NYC PTET. The federal SALT cap was raised starting in 2025, but the higher cap phases down for high earners, so these elections still matter to most successful practice owners.
The MCTMT
The Metropolitan Commuter Transportation Mobility Tax can apply to certain employers and self-employed individuals across all five boroughs, Westchester, Rockland, Nassau and Suffolk.
The Commercial Rent Tax
Manhattan practices south of 96th Street with high annual rent may owe it. Many qualify for a small-business credit, but the thresholds should be checked every year and at each lease renewal.
Buying a Dental Practice in New York
The asking price is where the analysis starts, not where it ends. In New York, three issues deserve particular attention before you sign.
Buying vs. Starting From Scratch
Buildout, rent and payroll costs in New York can make a startup far more expensive, and slower to break even, than in most markets. Compare both paths with real local numbers before deciding. See Buying a Dental Practice vs. Starting One: NY & NJ Costs.
The Seller's PPO Rates May Not Transfer
The fee schedules the seller has negotiated don't automatically carry over to a new owner. If your reimbursement drops after closing, the practice's earnings drop with it. See Buying a Dental Practice: Do the Seller's PPO Rates Transfer?
The Lease
In New York, the lease can matter as much as the patient base. Review the remaining term, rent escalations and the landlord's consent to assignment. In Manhattan below 96th Street, check for Commercial Rent Tax exposure too.
Before you commit, we normalize the seller's earnings, review production by provider, and test whether the practice can support the debt at the proposed price. Learn more about our Due Diligence on Your Practice Purchase.
Why New York Dentists Work With MRL Advisory Group
MRL Advisory Group is led by Spiro Leunes, CPA, who is licensed as a Certified Public Accountant in both New York and New Jersey and has worked with dental practices for more than two decades.
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Our practice is built around dentistry. We know what a healthy hygiene-to-doctor production ratio looks like, what associates in the city typically earn, and what a DSO's quality-of-earnings team will ask.
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We work with clients through video meetings, a secure portal and regular planning calls, so you get consistent access to your CPA without leaving the office.
Dental CPA Services Across the New York Metro Area
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New York City
Manhattan
Brooklyn
Queens
The Bronx
Staten Island
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Westchester County · Rockland County
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Long Island
Nassau County​
Suffolk County
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Frequently Asked Questions
Should my NYC dental practice be an S corporation?
It depends on your income, where you live and how you pay yourself. An S election can reduce federal self-employment tax, but New York City still taxes the S corporation under the General Corporation Tax. The only reliable answer comes from modeling both options with your actual numbers.
What is the NYC Unincorporated Business Tax?
It's a city tax on the net income of unincorporated businesses, including sole proprietors and entities taxed as partnerships. Smaller liabilities receive a credit, and NYC residents may receive a partial credit against their personal city tax.
Should my practice elect the pass-through entity tax?
For many high-earning practice owners, yes. The election is made annually, so it should be reviewed every year against projected income.