I think you have all the same tax considerations as you would for any other sort of business -- the type, nature and number of investors, desired tax treatment, how it will be managed / operated, etc. (there are already a number of other posts covering these topics)

The only thing I would say is that manufacturing is often a capital-intensive business; as a result, you'll want to consider the sort of structure that an outside investor (assuming you'll get outside investors) would be comfortable putting money into. Generally this leans more toward a C corporation, but partnerships / LLCs can be used here too, depending on the investor.

As long as the manufacturer is running a for-profit enterprise, I don't think it will get a "tax exemption" per se. However, depending on the industry and where it's located (what state / locality), there may be tax credits available. In general, at least at the federal level, getting business tax credits doesn't depend on any particular structure.

If you need more specific guidance, please contact me and we can go over your particulars. www.ninjatax.com

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