§ 1806 Dental Corporation Disqualified Shareholder Income

• •If a dentist in a dental company loses their license or can't work legally, they can't get money from the company for their work.
• •The company can't give any money made from that dentist's work to them or their shares.
• •This rule is to make sure only licensed dentists get paid for dental work.

A dentist named Dr. Smith loses his license because he didn't finish his training. He still owns part of a dental company.

Even though Dr. Smith owns part of the company, he can't get any money from the work he does or the work the company does while he's not allowed to be a dentist.