Alabama’s rules come from the Dental Practice Act and Board of Dental Examiners rules. Check the legislation tracker for pending changes.
1. CPOD status
Tier: Strict, based on express employment, office, equipment, and control restrictions. The doctrine lives in the ownership statute, not the practice definition. Ala. Code § 34-9-9(a) provides that no person other than a licensed dentist (or a 501(c)(3) registered under § 34-9-7.2) may employ a dentist or dental hygienist in the operation of a dental office, lease dental material, equipment, or offices to a dentist for compensation, or retain ownership or control of dental equipment, material, or an office for a dentist’s use. “Person” includes any individual, firm, partnership, corporation, or other unlicensed entity (§ 34-9-9(a)(4)). Section 34-9-9(d)(1)–(3) then enumerates what a non-dentist may not control: patient records; pricing, credit, refunds, warranties, and advertising; office personnel; and hours of practice. The stated purpose is “to prevent a non-dentist from influencing or otherwise interfering with the exercise of a dentist’s independent professional judgment” (§ 34-9-9(c)). The practice definition at § 34-9-6 has no standalone proprietor clause. Instead, the ownership prohibition operates through § 34-9-9 and is enforced through § 34-9-18 and § 34-9-9(e).2. Other professions
This page covers dentistry only. Medicine, optometry, veterinary practice, and other professions are governed by different statutes and boards, even within the same state. For medical-practice sources, use the MSO-PC Wiki.3. Professional entity forms
Verified professional forms: a professional corporation under Ala. Code Title 10A, chapter 4; a dentist limited liability company under Ala. Admin. Code r. 270-X-4-.06; and a professional registered limited liability partnership under r. 270-X-4-.07. PC shares may be issued only to “qualified persons,” meaning individuals authorized by law to render the professional service named in the certificate of incorporation (§ 10A-4-1.03(6)). Board rule Ala. Admin. Code r. 270-X-4-.01 adds three requirements: no shares may be issued or transferred until the Board of Dental Examiners certifies the individual as a qualified person; non-dentist officers and directors may not participate in any decision constituting the practice of dentistry; and shareholders of a foreign PC rendering dental services in Alabama must be Alabama-licensed dentists. Rules 270-X-4-.06 and -.07 impose parallel Board-filing, licensed-transferee, and no-lay-clinical-control requirements on dentist LLCs and professional RLLPs. Hygienists cannot own. Section 34-9-9(a) reserves ownership to licensed dentists and expressly lists hygienists among those a non-dentist may not employ. A physician may practice medicine (§ 34-9-7(a)(1)) but is a non-dentist for § 34-9-9 purposes and gains no dental-practice ownership right. Also confirm before filing:- Naming rules, designator requirements, and any limits tied to licensed owners’ names; several states regulate dental trade names separately
- Board pre-approval or certificates, whether the dental board must act before (or after) the secretary of state will file
- Officer and director licensure, including states that restrict these roles as well as ownership to licensees
4. Fee structure
Alabama expressly prohibits percentage-of-use equipment leases: the § 34-9-9(a)(5) carve-outs cover only bona fide sales secured by chattel mortgage and bona fide leases “at a reasonable amount” under which the dentist “maintains complete care, custody, and control of the equipment and the practice.” No statute addresses a percentage management fee by name, but § 34-9-9(d) reserves pricing, credit, and refund decisions to the dentist. A revenue-linked fee may support an inference of prohibited control. Verify any fee structure with Alabama counsel. For the MSA, test whether a percentage-of-collections fee is permitted under the state’s dental, fee-splitting, referral, tax, and contract rules. Several states expressly restrict revenue-linked dental management fees, and the Aspen Dental settlements imposed related party-specific terms. Flat and cost-plus formulas are not automatic safe harbors; the services, calculation, amount, control rights, and actual payments still matter. See Fee-splitting rules and Set the management fee.5. Noncompetes
No dental-specific noncompete statute was identified for this page. Verify current Alabama law with counsel before including one. Federal noncompete policy changed substantially in 2025 and 2026. The FTC’s Non-Compete Rule was vacated, the agency dismissed its appeals in September 2025, and the rule was removed from 16 C.F.R. pt. 910 effective February 12, 2026. State law remains central. Dental enforcement resolutions in New York and California have also restricted noncompetes for the settling parties as a corporate-practice remedy. Verify the current rule, worker, agreement type, transaction context, effective date, and remedy in this state. See the legislation tracker.6. DSO-specific law and registration
No for-profit DSO registration appears in the dental authorities cited on this page. Ala. Code § 34-9-7.2 (enacted by Act 2011-571; amended by Act 2013-252 and Act 2018-274) instead requires a 501(c)(3) operating a dental clinic to register with the board, list its clinics and licensees, file its IRS determination, and name one licensed dentist as chief of dental services. Registration under that nonprofit pathway does not supply a route for a for-profit support company; test its asset, lease, service, and control rights against § 34-9-9. See Register a DSO for role-specific filings in other states.7. Death and transition
A prohibited arrangement “result[ing] from the death of a licensed dentist” is not a violation if cured within 12 months of the date of death (Ala. Code § 34-9-9(b)).8. Practical structuring notes
- The § 34-9-9(d) control list covers records, pricing, advertising, personnel, and hours. Draft each management services agreement (MSA) service line against it.
- Equipment and premises arrangements need bona fide, reasonable-amount terms that leave the dentist in complete care, custody, and control. Do not use usage-based lease pricing.
- Mobile dentistry is restricted: only an Alabama-licensed dentist or a registered 501(c)(3) may operate a mobile dental facility (§ 34-9-6.1).
- No reported CPOD case law or attorney general opinion was located in the official sources reviewed. That is an absence-of-authority observation, not a safe harbor; verify enforcement history and current legislation with counsel.
9. The standing checklist
- Confirmed the permitted entity form for dentistry in this state
- Confirmed whether dental board pre-approval or a certificate is required before filing
- Confirmed whether officers and directors must be licensed dentists
- Confirmed the management fee structure is lawful here, including any restriction on revenue-linked fees
- Clinical carve-out drafted against this state’s current statutory language, including any enumerated control prohibitions
- Transfer restriction and succession documents checked against this state’s death-transition window
- Noncompete provisions checked against current state law
- DSO foreign-qualified before it has employees here
- Any DSO registration, licensure, or disclosure obligation identified and calendared
- Trade-name and advertising-disclosure rules for dental practices checked
10. Sources and where to verify
For the cases and statutes referenced above, see DSO & dental case law and the 51-jurisdiction table. For enacted and pending legislation, see the dental legislation tracker.