After learning about different types of business entities, like sole proprietorships, partnerships, LLCs, S-Corps, and C-Corps, I realized that each one has its own pros and cons. For example, a sole proprietorship is simple and cheap to start, but offers no liability protection. A C-Corp, on the other hand, offers strong protection and makes it easier to raise money, but it’s expensive and comes with double taxation.

If I wanted to start a small medical device company, I think I’d lean toward an LLC or an S-Corp. Both offer liability protection while still being more flexible and tax-friendly than a C-Corp. However, if the goal is to grow big and attract investors, a C-Corp might be the only option in the long run.

My question: Is it smarter for a new business to start small and simple, or should it aim to become a corporation right from the beginning? I appreciate your participation!