If I'm not mistaken, I really don't think that you want an S-corp for a technology business. From my understanding, with an S-corp, all shareholders must be US citizens: http://www.allbusiness.com/business-planning/business-struct...

So, if you want to take VC funds, you're going to have to change to a C-corp. There's also a lot of maintenance that has to be done as an S-corp or a C-corp, that you wouldn't have to do if you incorporated an LLC or as a sole proprietorship. If you're just starting off, this might be a little tough to keep up with.

If it's just you, have you thought about setting up a sole proprietorship? You pretty much get your "doing business as" paperwork filed with the county, pay the business license fee and you're in business. After you do that, you can set up a separate bank account with your businesses name, and run the business off that bank account. Business taxes are handled on your own income tax. If the business needs money, put it in the account, if your business makes money, take it out. And, keep a decent set of books that separates your personal finances from the businesses.

As for an LLC, the primary advantage that will give you over a sole proprietorship is protection from getting sued. That is, if your company gets sued, they can't go after your house and bank account. And, it's possible to have multiple people as members of an LLC.

I've been mulling these same questions over, and my decision has been to work as a sole proprietorship until I have to incorporate. And, as far as I'm concerned, I'm not going to have to incorporate until I need to offer shares to employees or take outside investment.