How to Start a Dental Billing Company and Acquire Your First Client

Published by the American Dental Coders Association

Starting a dental billing company is a strategic move for professionals with experience in dental coding, insurance claims, and revenue cycle management. With the rising demand for outsourced billing solutions in dental practices, the opportunity is ripe—but knowing how to structure your business and land that first client can make or break your success.

In this comprehensive guide, you’ll learn how to start a dental billing company from scratch, legally and operationally, and how to attract and secure your first client with confidence.

Step 1: Understand the Role and Market

Dental billing companies manage claims processing, insurance verification, coding, collections, and patient billing for dental practices—freeing up time and increasing collections for providers.

Market Research Tip: Explore the competition in your region. Identify their service offerings, pricing structures, and online presence. This will help you carve out a unique value proposition.

Step 2: Gain the Right Knowledge and Credentials

Though not legally required, having certification in dental billing or coding adds professional credibility. Consider:

• Certified Dental Billing Specialist (CDBS)
• Certified Dental Coder (CDC)

These certifications ensure you understand CDT coding, claims submission, appeal processes, and payer policies.

Step 3: Choose a Business Structure and Register It

Legal Structure Options:

• Sole Proprietorship: Simplest, but personal liability applies.
• LLC: Offers liability protection and tax flexibility.
• S-Corp or C-Corp: May be ideal for scalable businesses.

Startup Checklist:

• Register your business name with your state
• Obtain an EIN from the IRS
• Open a business bank account
• Get liability insurance
• Draft HIPAA-compliant contracts and privacy policies

Step 4: Set Up Operations and Technology

You’ll need secure systems to handle sensitive data. Consider:

• Practice Management Software: Open Dental, Dentrix, Eaglesoft, or Curve Dental
• Clearinghouses: DentalXChange, Availity, Change Healthcare
• HIPAA Compliance Tools: Paubox, Virtru for encrypted email
• Phone Systems: RingCentral, Grasshopper

Step 5: Build a Strong Online Presence

Today’s clients will Google you before signing anything. Essentials include:

• Professional Website: List services, credentials, testimonials, and contact info
• LinkedIn: Share articles and connect with dental professionals
• Google Business Profile: Helps with SEO
• Social Media: Use Facebook and Instagram for visibility

Step 6: Create Pricing Packages

Structure pricing based on practice size and needs. Common models:

• Percentage of Collections: Usually 5–10%
• Flat Monthly Fee: Predictable billing option
• Hybrid: Base + incentive-based bonuses

Step 7: Network and Market Strategically

Marketing Channels:

• Email and phone outreach to local dental practices
• Attend dental conferences and continuing education events
• Partner with dental consultants and supply reps
• Engage with local dental societies or Facebook groups

Step 8: Acquire Your First Client

Here’s a roadmap to secure your first dental client:

1. Target List: Identify 10–15 dental offices that may need help
2. Free Audit: Offer a no-cost insurance claims analysis
3. Custom Proposal: Use audit data to show value and pricing
4. Short-Term Contract: Suggest a 90-day trial to build trust

Sample Cold Email Template

Subject: Streamline Your Dental Billing – Complimentary Claims Audit Offer

Dear [Dentist’s Name],

I’m [Your Name], a Certified Dental Billing Specialist and Coder offering remote billing solutions to dental practices like yours. I noticed your practice in [City] and wanted to offer a no-obligation claims audit to help identify missed revenue and streamline your reimbursement processes.

Would you be open to a 15-minute call this week?

Best,  
[Your Full Name]  
[Phone Number]  
[Website URL]

Bonus: Join a Dental Billing Network

Become part of a network like the ADCA Membership for access to referrals, templates, support, and community learning.

And don’t forget to check out Ask-The-Coder—a free resource where you can ask dental billing and coding questions anytime.

Conclusion

Launching your dental billing company is more than just a side hustle—it’s a long-term business opportunity. With proper planning, professional tools, and a strategy to win that first client, you can create a scalable and rewarding venture in the dental industry.