[EDITOR'S NOTE: At year’s end, experienced builders want to finish clearing their inventory, and savvy real estate investors often take advantage of reduced prices and better terms. That’s what Southern Impression Homes is offering right now—and you could be the one to win out! Through the end of 2025, Southern Impression Homes is offering discounted pricing and unheard-of financial incentives for newly constructed build-to-rent homes. This is direct ownership at a reduced price, and it could end your year on exactly the right note with tax depreciation and cash flow. Check out Southern Impression Homes and the deals being offered today!]
 
By Tyler Polk, Guest Writer

In 2025, dentistry still remains a highly paid profession in the United States. However, with the rising cost of dental school tuition, it is becoming increasingly important to consider the differences in compensation between DSOs and dentist-owned practices, along with the lifestyles in those respective practice settings.

According to the latest data from the US Bureau of Labor Statistics, the median annual wage for dentists is around $179,210 as of May 2024. General dentists, the focus of my discussion, typically earn well into six figures. In fact, the average net income for general practitioner dentists was about $218,710 (based on 2023 data). However, this average highlights a significant difference, one that is based on practice ownership. Practice owners earned roughly $228,220 on average, compared to about $177,110 for employed general dentists in the same period.

These figures underscore how a dentist practices—whether as an owner or as an employee (often employed by a DSO)—can significantly impact earnings.

 

DSO vs. Private Practice: Who Earns More?

One of the most important considerations for a dentist is the comparison between working for Dental Service Organizations (DSOs) vs. dentist-owned private practices. A DSO is a corporate entity that owns or manages dental practices and employs dental professionals directly. Data consistently shows that dentist practice owners tend to earn more than associates or DSO-employed dentists. For example, the American Dental Association’s survey reports that owner dentists average about $260,000 vs $184,000 for employed dentists across all types. Focusing on general dentists specifically, owners netted ~$228,000 vs. ~$177,000 for non-owners. That is a gap of roughly $50,000+ in annual earnings.

Why do private practice owners tend to earn more? As owners, dentists open themselves up to additional ways to earn income, including the profits of the practice (after expenses) in addition to paying themselves a salary for clinical work. In a DSO or employee model, a significant portion of the revenue you generate goes to the organization, and you typically receive a smaller percentage of production. Owners can also build equity by growing the practice’s value, adding to their end-of-career compensation if they can sell their share of the equity in the building for a multiple of their initial investment. Some dentists are often surprised by the equity appreciation while realizing a nice payday.

Thus, from a pure salary and income standpoint, a dentist-owned practice offers greater upside. For dentists, this ownership can be similar to holding equity in a business, whereas a DSO position is more like earning a fixed wage. The data clearly support the financial advantages of ownership for general dentists in 2025.

More information here:

A Dental Career Reimagined — I Thought I’d Be Rich But I Found Wealth in Another Way

Is Dentistry Worth It? Comparing It to Being a Pediatrician, a Planner, and a Plumber

 

Compensation Structures and Benefits: Key Differences

It’s not just a question of how much dentists earn but how they earn it (and what benefits come with the job) that differs between DSOs and private practices. There are several notable differences that I’ve seen. To share a few of the most important:

 

Pay Structure

In private practice, dentists (especially owners) are more likely to pay themselves a straight salary or a fixed draw. In contrast, corporate/DSO dentists are often paid on a percentage of production or collections model. Over 60% of corporate dentists—both owners within DSOs and associate employees—reported being compensated based on their performance (production) rather than a fixed salary. Private practices also use production-based pay (especially for associates).

But interestingly, 56% of private practice owners took an annual salary (paying themselves a set amount), whereas 70% of private practice associates had percentage-of-production pay. This means a new dentist joining a private office might get a commission-style pay, while the owner draws a salary from profits. Corporate settings, on the other hand, tend to standardize compensation formulas or “bands” tied to output among their employees.

 

Benefits Packages

DSOs typically offer more robust benefits than small private offices. Roughly 60% of corporate dental offices provide retirement plans and 60% offer health insurance, compared to about 50% of private practices offering retirement and only 40% offering health insurance. In fact, an employee dentist in a corporate practice is twice as likely to receive health and retirement benefits as an associate in a private practice.

Large organizations can leverage economies of scale to provide benefits like 401(k) matches, insurance, paid leave, and continuing education stipends—something that a solo owner might struggle to match. So, while the raw salary might be lower in a DSO, the total compensation (salary + benefits) could be competitive for many dentists, especially important for those seeking security and those with high student loans (the American Dental Education Association (ADEA) reports that the average US graduate finishes dental school with $292,169 in student loans for dental school).

 

Job Security and Support

Corporate employers typically offer more contractual guarantees (e.g., a minimum salary floor or guaranteed patient flow). Many new graduates are attracted to DSOs for the perceived stability and lower risk. With a DSO, for example, there is no need to invest in or manage a business early on. DSOs also provide extensive support in operations: everything from marketing, HR, and billing to purchasing supplies is handled for you. This can translate into peace of mind and more predictable workflows. Private practice owners, by contrast, shoulder these business responsibilities immediately, and they can be overwhelming for a new dentist fresh out of school. However, with that responsibility comes autonomy and the ability to have a more direct impact on their earning potential.

Based on this research, it's clear that compensation in dentistry varies significantly by practice type—so much in fact that new resources are emerging to track it. For instance, SalaryDr (a dentist and physician salary database) explicitly lets users filter by practice setting because DSO, private, academic, and public health salaries can differ substantially. The differences in pay structures and benefits are a big part of why these variations in pay exist.

 

Lifestyle Insights for General Dentists

Compensation is just one part of any career consideration. Looking beyond compensation, we can see the differences in the lifestyles of these dentists. Data on SalaryDr reveals that many general dentists enjoy structured workweeks with meaningful flexibility. Most respondents reported 3-4 clinical days per week, averaging 30-35 hours with no weekends or call. Vacation ranged widely, but many took 4-6 weeks off per year, with longer breaks possible in multi-doctor practices where colleagues cover. Associates in group settings or DSOs often benefit from predictable schedules, formal PTO and benefits packages, and reduced administrative burdens—which creates a steady rhythm of clinical work and time off. Several noted that dentistry itself feels straightforward compared to the challenge of managing staff and insurance, underscoring why some choose employee roles for simplicity. For a closer look at these lifestyle patterns, SalaryDr maintains a growing database of dentist salaries and lifestyle submissions, providing real-world insights beyond headline averages.

Owners and partners, by contrast, highlighted the autonomy within their schedules, with some working as few as three days a week or setting shorter daily hours. However, they also pointed out the tradeoffs: when they’re away, the practice stops producing, and the responsibilities of payroll, compliance, and staff management follow them outside of clinic hours. For newer owners, especially in the first years after acquisition, workloads can balloon into six or seven days a week before stabilizing. Yet with time, ownership can translate into a better balance—hiring associates, refining systems, and reclaiming weekends.

In short, associates trade higher benefits and predictability for less control, while owners trade administrative stress for long-term flexibility and lifestyle design once their practices mature.

More information here:

Why I Sold My Practice to Private Equity, and Why You Probably Should Too

Why More and More Dentists Are Going ‘Out of Network’ — And Why That’s Actually Good News

 

The Bottom Line

The choice between DSO employment and private practice comes down to personal priorities, and it will ultimately be a choice of personal preference based on many factors, including lifestyle and family situations. However, if one values immediate stability, mentorship, and fewer managerial headaches, a DSO or an associate role can be a smart move. If, instead, your goal is to maximize income, equity, and autonomy and you’re willing to put in the effort, aiming for ownership is the clear path to greater financial reward.

Many dentists ultimately blend these paths: starting in a DSO or group to gain experience and pay down loans, then transitioning to buy or start a practice once they are ready. By understanding the salary data and lifestyle realities in 2025, dentists can make informed career decisions that fit both their financial objectives and desired quality of life.

What do you think? Would you rather work for a DSO and potentially make less money or become a practice owner and have the ability to earn a higher salary? How much would ownership be worth to you?

[EDITOR'S NOTE: Tyler Polk, CPA, is the founder of SalaryDr, a free pay transparency platform for dentists and physicians. He helps dental professionals make informed career decisions by benchmarking income and work-life trends. Explore what general dentists actually earn on SalaryDr’s dentist salary dashboard. This article was submitted and approved according to our Guest Post Policy. We have no financial relationship.]