With limited liability the owners of the business are not personally liable for the debts of the company, as long as they operate the practice appropriately and comply with all applicable legislation.
An incorporation involves the sale/transfer of your dental practice, including all the equipment, goodwill and property (if appropriate) to a new legal entity, a limited company set up to provide dental services.
The day to day running, management and workings of the practice remain unchanged but the business structure is now likely to be more advantageous to the owners.
It is a complex area of law and the considerations are vast, ranging from tax implications, valuation of the practice to employment contracts and TUPE (Transfer of Undertakings Protection of Employment Regulations 2006). Also things can get particularly complex if the practice is an NHS practice.