As many have mentioned, it highly depends on what type of business you are trying to conduct.

If I was creating a tech start up I would most likely go the route of an LLC. With an LLC it will be relatively cheap and easy to set up. As stated in the lecture videos, the members divide the ownership percentage and because the LLC is not taxed as an entity, the members will get taxed according to that percentage of ownership. The advantage here is that in the early stages of a startup you will most likely be losing money (business cost, operation cost, overhead, employee payments). That loss you take can be applied to your personal tax return. If you don’t take an income in the early stages of the start up you can apply that loss to future income which in turn will adjust your gross income (income before deductions are taken out) and this can lead to a tax refund. If you are going down the C-Corp route the company is an entity and all income is therefore taxed. The disadvantage of being an LLC for a startup would be the lack of shares being available to shareholders. Therefore, if you are looking for outside investors and venture capitalist to dish out money for your startup, which is huge for moving start ups forward, then this is a big disadvantage. To mitigate this I suppose, I would try to switch from an LLC to a C-Corp at some point. Also, depending on what state the start up is under, the cost of starting an LLC can be very hefty.

The biggest decision in all this is really not the taxes and complexity of starting a company but how much liability you as an owner or partner want to take. Many people are risk adverse and low risk low reward and some people are risk takers and want high risk high reward. I would consider that, above all else, before deciding what time of corporation you want to be.