Are you ready to mix business with pleasure? As a dentist owning your private dental practice, holding annual shareholder meetings is not just a necessity—it’s a fantastic opportunity! As we welcome summer and make travel plans, we want to remind you to have an annual shareholder meeting this year.

Picture this: you’re planning your family vacation and decide to include a shareholder meeting because your family members are shareholders employed in your practice. With the right approach, you can make your trip enjoyable, productive, and deductible. Proper documentation is critical to demonstrating that the trip's primary purpose was to conduct a shareholder meeting, and we’re here to help you make it happen seamlessly!

Why Documenting Shareholder Meetings Matters

Shareholder meetings can occur anywhere worldwide as long as the shareholders are present and the discussions revolve around the practice. These meetings are not just a formality; they are vital for strategizing and making informed decisions about the future of your practice. Proper documentation is critical to ensure that the expenses for the meeting are deductible. Here are some strategies to ensure your annual shareholder meeting is deductible.

1. Set Clear Goals

Before the meeting, define what you aim to achieve. Whether reviewing financial performance, discussing new marketing strategies, or setting goals for the upcoming year, having clear objectives will keep the meeting focused and productive.

2. Create a Participant/Guest List

List all participants and their roles in the practice. This will help with planning and serve as a record of who was involved in the decision-making process.

3. Document the Minutes

Take detailed minutes of the meeting. Record discussions, decisions made, and action items. Minutes are essential evidence that the meeting was conducted in earnest.

4. Have a Follow-up List

Create a list of follow-up actions that must be taken after the meeting. This ensures that decisions made during the meeting are implemented and tracked.

5. Review Strategic Initiatives & Goals

Discuss the strategic initiatives and goals for the practice. Reviewing these regularly helps align everyone’s efforts and keeps the practice on track.

6. Review Marketing Plan

Evaluate your current marketing plan and make necessary adjustments. Discussing marketing strategies ensures your practice remains competitive and attracts new patients amid a sea of corporate practices with large marketing budgets.

7. Discuss 401(K) Plan/Funding

Review your practice’s 401(K) plan and funding options. This is particularly important for long-term financial planning and progressing towards your long-term financial goals.

8. Review Job Descriptions

Revisiting job descriptions ensures everyone’s roles and responsibilities align with the practice’s goals.

9. Consider What Remote Work Can Be Done

Discuss potential remote work opportunities for your age-appropriate employed children, such as managing social media accounts. This can increase efficiency and provide flexibility in how work is accomplished and is great for children away at college..

10. Take Pictures!

Document the meeting with photos. This provides additional proof that the meeting captures memories and promotes a sense of unity among shareholders.

To ensure the shareholder meeting is defensible to the IRS:

• Allocate at least 4 hours for the meeting.

• Ensure the primary purpose of the trip is the business meeting.

• Maintain comprehensive documentation to support the deduction.

Properly planning and documenting your annual shareholder meeting can save your practice money through tax deductions. Following these strategies ensures that your shareholder meetings are productive, compliant, and beneficial for your practice's financial health.

Not sure where to start? Contact us today!