In China, the country offers Wholly Foreign Owned Enterprises. This is the most popular form of incorporation of foreign companies in China. WFOE allows an LLC company that is owned by foreign to open their company in China, usually for manufacturing purposes, without the involvement of a Chinese partner.

The advantages include:
- Implementation of the parent companies strategy, brand, and mission in the worlds biggest market without having to involve Chinese partners or investors.
- The ability to carry out formal business functions without having the site act as just a "satellite office"
- Ability to receive and remit money into Chinese currency
- Increased protection of intellectual property overseas
- Increased efficiency in management and operations

The disadvantages include:
- Lack of government support
- Understanding the complex Chinese market
- Since the parent company is an LLC, the the foreign funds are required to be raised for authorized capital for shareholders

The company will be better off to exist as an “Inc.” corporation than an “LLC”, first Corporation has limited liability, so the investors and owners are not generally liable for business debts and other liabilities. While an LLC, does has limited liability but Instead, any net profit or loss is “passed through” to the personal tax returns of the owners or investors. Corporation "Inc" will make far more profit, can be publicly traded and "C Corporation" can raise more finances by issuing stock. A lot of capital could be raised and use it in further research, to add new product line etc. An LLC has to depend selling shares to raise funds and cannot be publicly traded

I think that this company with $10 million in revenue would fare best as as INC as opposed to and LLC. For this company being able to issue shares of stocks to investors is an advantage that an LLC doesn't offer. Lowering taxes by splitting income is another advantage this company can gain by becoming an "INC".

There are a lot of interesting points made above which made it hard to make a decision. But from my research I would go with an LLC. As a mid sized company you can start as an LLC and change it to a INC later. The common advantages of an INC and LLC are-
- Limited liability
- No double taxation
- Pass through of losses
Of course if this is a growing company, as an LLC there is more flexibility for the owner on the decisions made for the company. This is the reason why I would go with the LLC just so the owners can have a say in the company operations. There is always an option to become an INC later on.

First its important to identify the difference between an incorporation and a limited liability company. An LLC is the United States' version of a private limited company. An LLC's business structure combines the taxation of a partnernship with the limited liability of a corporation. On the contrast, an incorporated company is legally separate from the people who have formed it. Directors who purchase shares in the company have responsibility over its operations. In the case of a lawsuit, this limits an individuals liability. Corporations can especially advantageous because it lowers the overall liability of the company and also reduces tax for the owners. In the beginning, it would not be efficient to turn this small company into a corporation because of its size. But overtime, as it grows with its revenue it would surely be a viable option.

A medical device company of mid-size with 50 people and about $10 million in revenue would exist as an Inc corporation versus and LLC. An LLC is typically a small-medium company that involves limited risk assumed by all owner and the ownership is based on the amount each partner invests initially. Managing members are almost considered like a partner in a LLC company. For this medical device company of about 50 people I would not go with the LLC option but rather a corporation would be beneficial to the company. As a corporation the company can go public and sell stock and have investors that invest money in the growth of the company. I would also think the a partnership would also be beneficial to the company because then the ownership of the company can then split responsibilities, less risk on each owner, more funds and more minds to help the company develop.

Two of the similar type of US corporation structures that can be compared with to Indian corporations are the LLP and C-Corp. The pros of an LLP in India are:
1. Corporation need not be terminated in the death of a partner
2. Other partners in the company are protected from the consequences of actions of another partner.
C-Corps of US can be compared to Private Limited type of corporations in India. One of the pros of Pvt. Ltd. In India is it allows investors to exit the company without being liable for company affairs.

If the company is looking to grow, it should be an Inc instead of an LLC. In an Inc, you can hire Officers to compartmentalize your company. This spreads the task of growth out onto more people. In an LLC, there are fewer owners. Between running the company, maintaining contacts, and driving expansion, they could get overwhelmed. Also, Inc company leadership is more fluid than in an LLC. In an LLC, if there was one initial investor that paid a lot more, thy will be in charge of decisions forever. In an Inc, it is a lot easier to change who has the biggest say in company decisions.

As a midsized company with 10 million in revenue I would say that they company become a Inc instead of a LLC. As a company that wants to grow they need to start giving investors stock options so that they have the ability to expand. With a company that is growing they also need to strongly consider the risk with more employees and locations. As a corporation they can split up the risk among the owners and are able to hire board members of other staff members such as Officers who will then be responsible for their own sectors and their own actions. Also, in addition if the company is successful and looking to grow you do not want a tragedy such as a death of one of the members to cripple destroy the company when they leave if they are a LLC. An Inc will remain stable in the future showing more promise for growth. An Inc will also make it easier to get loans and give them the possibility of expanding and growing even more. If the Corp is a S-Corp then they profit even more from not being double taxed like a C-Corp would. Seeing as the company is not massive yet where they need to expand to other countries, seeking shareholders from other countries is not an immediate priority, and so an S-Corp would better suite this medical device company.

What would make a company choose LLC vs Inc? LLC is a way to combine the benefit of limited liability and pass-through taxation. However an LLC can't have investors. On the other hand, C corporation is owned by the shareholders. C corporations are good for start-ups that plan to eventually go public. A C corp is also best for businesses that want to raise capital with investors or in businesses where liability is high. Thus it depends what a company is looking for, but a bigger and well established company would likely be an INC or C-corp.

If a company of that size existed as an Inc corporation, it would allow more people to invest in the company's shares. This also gives the option of eventually going public, which would create a lot of revenue for the company since there will be a lot of people investing in the shares. This will also make them more well-known among other companies. If this company would want to grow and expand, an Inc corporation would be the better option.

A medical device company with only 50 employees and $10 million in revenue would classify as a small business (less than 100 people) and therefore should consider which aspects of either an LLC or a Corp. appeal to the company's current health. Initially, an LLC seems to be the way to go for a few reasons: The owners of an LLC are expected to have more control over the company since it cannot sell shares and split authority with shareholders (although they can sell bonds to raise money). This allows for easier handling of the company's operations, in short, "Too many cooks spoil the broth". If an LLC is having difficulties handling paperwork and administrative duties, they can just hire others, as an LLC can have unlimited owners. An LLC also provides the same level of protection against liability that a corporation would have, while also having the option of filing its taxes as that of an S-corp or C-corp. If an LLC intended on transitioning to a corporation, then an S-corp would only be subjected to flow through taxes rather than double taxation, allowing the newly-sprung S-corp to retain more money that it can focus on investments.

The drawbacks to not immediately becoming a corporation is that the corporations themselves take the earnings and losses charged due to being a separate business entity, which provides less risk to the shareholders if severe liabilities ensue. Corporations are also more stable upon the leaving/death of its shareholders, possibly because the more members you have the less power each member has to lose upon their dismissal, therefore the redistribution of that power should not present too much challenge. Finally, corporations tend to acquire credit easier and in turn, attain loans more easily than LLC. Overall, an LLC would be a more suitable option in the case of a small company in that it is not as prone to taking larger, more riskier steps in growing. If the LLC intends to go public, then it always has the option of filing to become a corp assuming it can handle the large-scale operations that typically accompany it.

Are there any major medical device companies today that directly originated as an LLC? What do you think prompts an LLC into becoming a corporation. For what reasons would a company chose to become an S-corp or C-corp (other than the double taxation of C-corps). Finally, have there ever been any major liabilities inflicted on a medical device company that could have been mitigated if they started out as another type of corporation (LLC instead of Inc)?

Reference:
"LLC or Corporation - Which Should I Select for My Business?" by Jean Murray (updated Oct 06, 2018) The Balance Small Business.

I believe that LLC would be a good option because it's a Limited liability, there's no double taxation, and it passes through of losses. LLC also can have unlimited owners. Beside that, it provides the same level of protection against liability that a corporation would have, while also having the option of filing its taxes as that of an S-corp or C-corp. I also think that LLC would be a more suitable option in the case of a small company as it offers protection in the form of reduced personal liability as well as reduced taxation. For a company looking to continue steady growth in its field, this is an excellent option.

For that particular company, I would look at an LLC. Mainly due to the liability they have if something goes wrong. I don't believe that they have enough revenue to cover a lawsuit and continue to function as a company proficiently afterwards. If over the next 5 years they project 80-100 % increases in revenue each year, I would look at incorporation. This is because the company will have the option of going public. Going public will give them more leeway to explode their business.

This may be interesting: I wouldn't really advise an LLC Medical Device midsize, 50 person, $10 million revenue company operating as an LLC to revert to the status of a public company. Considering the advantages and disadvantages of both a private vs a public company, we notice that the Medical device company operating as an LLC has assumed a position that could easily be described as half and half in terms of financial operation compared to both the proprietorship and publicly run financial institutions. For example, unlike the proprietorship, the owner's bank account is not intertwined with the business account; nevertheless, the company is considered owned by this investors to the extent evaluated from the value of each of their original investments; meanwhile their personal property, unlike with the case of a proprietorship, is being legally fully shielded from being affected negatively impacted by events that may negatively affect the company's life. And, unlike the case of publicly run financial institutions, their financial operations are kept private and do not have to spend to hire personnel to do the reporting to SEC.
They can raise money by selling shares like publicly run financial institutions and even pay dividends to share holders following the outcome of their operation. And like both a proprietorship and an S-Corp, they profit is taxed only once.

So, if anything were to go wrong with this midsize, Medical devise company operating as an LLC, it would not be because of its set up as a financial institution.

In my opinion, an LLC is set properly to be productive; it does not have to be international to be productive. Remember, being private does not really mean small. A private company like an LLC can easily be so well off financially that it can buy other companies. Biomed is an example that got bought over by a privately owned company; yet it was a billion dollar financial institution.

So my advise to this midsize company operating as an LLC will not be that they transform into an "Inc" operated financial institution, it will be that they look closely at and carefully into how well their employees are being treated and how well their departments communicate with one another in terms of functionality.