I will just share with you my experience with becoming a breeder. I had a mentor who shows her dogs, she started with yorkies, and has moved on to other dogs. She did breed yorkies and has 20+yrs of experience.
In the begining she told me or actually warned me not to tell other yorkie breeders in the area that I was becoming a breeder... she said that many breeders will put me down in someway- ie: saying anything to get me to not become a breeder... because with yorkies, you can sell them for more... and breeders (seasoned ones) don't want you or anyone to start breeding them, you will take away some of their buyers... it was a long conversation and she told me many things.
I then asked her- they why are you willing to help anyone become a breeder? she feels that it is her responsibility to help those that come to her for help, to share her knowledge, and give that welping female and then puppies the best chance possible.... she wants to help those who she believes will make great breeders someday.. she also said another main reason is because EVERY BREEDER has to start with their first litter- NO ONE is born knowing everything there is to know, and with yrs of experience breeding under their belt.... WE ALL start the same way... our first female, and litter. (by the way, I didn't have to pay her anything for her help, she even left dining with associates to help with the delivery at my home)
She is very respected in the ring- her kennel name is known all over- she has had, bred, raised many champions.
She approaced me, when she saw my jasmine about breeding her, if I had thought about it ect... she believed also that jasmines daughter would do great in the ring, and would make a good mama someday. She agreed with the reasons why I got her fixed, even before I knew her tear ducts didn't form right.
The reason she approached me was because she was going to aid us in breeding our rotty, who was breed standard all the way and so beautiful... but other things happened, and we chose to spay her...
Anyways, my whole point of this very long thread is this- good for you if you have a seasoned mentor- it isn't our right to judge your reasons for breeding, who knows, you may become the next best breeders of yorkies, you will come across many people who will try and talk you out of breeding, they may roll their eyes at you, many people forget that they also started out brand new to this.
As far as the teeth go, I would talk to your vet- I would think that removing the retained teeth would be best for your dog now... but I am no vet.
Good luck, I know I am sticking my neck out here, by what I have said, but I am just passing on what I was told, and found to be very true.
There are supportive people out there, sounds like you have one in your mentor