Your client is a startup medical device manufacturer. It intends to raise $20M - $30M in order to design, test, obtain FDA approval and bring to market 2-3 medical devices in different areas/uses, including spinal implants, aortic stents and corneal/retina applications. It is likely that a competitor would seek to acquire one or two of the company’s products if they are successful.

The three founders, Joe, Tracey and Whitney, have asked you to outline the pros and cons of forming as an LLC, S corporation or C Corporation. Please briefly address the tax and corporate benefits and drawbacks of each type of legal entity at all stages of the business lifecycle, including formation, fundraising, use of losses, and flexibility on sale.