A medical device company of mid-size with 50 people and $10 million in revenue should exist as “Inc.” as opposed to “LLC”. As stated previously by others in the forum, there is a drawback of double taxation which can be important, although the benefits of going public and expanding revenue and increase workforce outweigh this shortcoming. Additional benefits of “Inc.” structure includes: a) allows business owners to use business losses on their personal tax returns and deductions, b) An S corp can provide savings on self-employment or Social Security/ Medicare taxes, and it allows owner to offset non-business income with losses from the business, and c) C corps are often preferred incorporation choice of developing business as owners can hold different types of stock interests which allows different levels of dividends. This is the one reason why venture capitalists choose C corporations when they offer funding to a business. Investors are attracted to the prospect of dividends (often higher dividends) if the corporation makes a profit.