Louisiana CPOD and DSO reference

Louisiana is a strict corporate practice of dentistry (CPOD) state with an express path for management services. Non-dentist ownership “of any kind” in a dental practice is a disciplinary offense, and fee division with non-dentists is prohibited. The practice act nevertheless permits a dentist to contract with any person or entity to manage the practice.

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1. CPOD status

Tier: Strict

• La. R.S. 37:776(A)(10)(a): it is a ground for nonissuance, suspension, or revocation of a dental license to employ, procure, induce, aid, or abet a person not licensed as a dentist to practice dentistry “or to possess an ownership interest of any kind in a dental practice.”
• La. R.S. 37:776(A)(9)(a): fee division with non-dentists is separately prohibited.
• La. R.S. 37:788: unlicensed practice is a crime punishable by up to $$5,000 or five years’ imprisonment (R.S. 37:788(B)(3)).

The current definition of “dentistry” in R.S. 37:751(A)(6) covers evaluation, diagnosis, prevention, or treatment of the oral cavity and maxillofacial areas. It does not include owning or operating an office. The older proprietorship-style definition still cited in some 50-state surveys is no longer the statutory text. Separately, R.S. 37:774 prohibits conducting, maintaining, operating, owning, or providing a dental office under a corporate, company, LLC, or trade name “without full and outward disclosure of his full name.” This is a disclosure rule, with an exception for Title 12, ch. 11 professional corporations.

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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.

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3. Professional entity forms

Permitted forms: professional dental corporations and professional dental LLCs under Title 12, ch. 11:

• R.S. 12:982: formation restricted to natural persons “duly licensed to practice dentistry in this state”;
• R.S. 12:984: the entity may engage in no business other than dentistry (plus investment property);
• R.S. 12:985: only a licensed-dentist shareholder or another professional dental corporation may vote and participate in earnings. Its reference to an “other shareholder” with no vote, earnings, or practice-record access is not a general lay-investor authorization. Reconcile any passive or succession holding with R.S. 37:776(A)(10)(a)‘s separate ban on non-dentist ownership “of any kind.”

Ownership: hygienists may not own a dental practice. R.S. 37:776(A)(10)(a) reaches any person “not licensed or registered as a dentist.” A dentist or hygienist may, however, own stock in a dental supply business or commercial laboratory. 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

See PC vs PLLC vs PA and Form a professional corporation.

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4. Fee structure

Percentage fees require particular attention in Louisiana. R.S. 37:776(A)(9)(a) prohibits fee division with non-dentists, and the provisions that permit management contracts do not displace that prohibition. An MSA fee that operates as a share of professional fees may be treated as prohibited fee splitting. A flat or cost-plus structure may reduce that risk but is not an automatic safe harbor. Verify the fee with Louisiana 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.

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5. Noncompetes

No dental-specific noncompete statute was identified in this research; Louisiana noncompetes are governed by the state’s general (and famously restrictive) noncompete law. Verify current Louisiana 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.

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6. DSO-specific law and registration

No DSO registration statute by name, but the practice act addresses management arrangements directly:

• R.S. 37:776(A)(9)(b) and (A)(10)(b) (final sentences): “nothing in this Subparagraph shall prohibit a dentist from contracting with any person or entity for management of a dental practice.” Management agreements are expressly permitted, subject to the fee-splitting ban in (A)(9)(a) and the ownership ban in (A)(10)(a). The effective date of the management-contract language was not verified for this page.
• R.S. 37:796.1(B): the board must license and regulate all nonresident officers, managers, and partners of a business entity that provides administrative or management services to a mobile dental clinic.
• Board rules at LAC 46:XXXIII may add detail on business arrangements. Verify the current rules with counsel.

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7. Death and transition window

R.S. 37:752(9) (mirrored in 37:776(A)(9)(b)–(10)(b)): the spouse or personal representative of a deceased or disabled dentist may contract with a licensed dentist to manage the practice for sale or disposition for up to 24 months, and may not control clinical judgment, clinical personnel decisions, or fees (R.S. 37:752(9)(b)(i)–(iv)).

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8. Practical structuring notes

Louisiana expressly permits management contracts but continues to prohibit non-dentist ownership and fee splitting. The Louisiana State Board of Dentistry has historically enforced against unlicensed-ownership arrangements; verify its current posture with counsel. Apply the R.S. 37:774 disclosure rule to location branding, and review the narrow employment exceptions at R.S. 37:797–798 for FQHC employment and direct primary care dental agreements.

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9. Verification 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

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10. Sources

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.