It is personal preference but if you are breeding and selling Yorkies in the US and want to stay with the standard, they need to be docked. It is done between 3 and 5 days old.
Dogs can do just fine without their tails and if it is done correctly, it is safe. Since the bones haven't calcified by the time it is done, it shouldn't be too painful.
I prefer the look of a docked tail on a Yorkie.
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