We're going through this right now ("converting" an LLC to a C-Corp to make VCs happy).
It's not hard, not expensive, and not cumbersome. We're creating a new C Corp, and making the old LLC a subsidiary of the C Corp. It's common and standard and it's about 5% of the paperwork that lawyers do to close a Series A round. It's basically the easiest part of our financing.
Don't worry about starting your company as an LLC. If you don't take VC, you'll be MUCH happier with an LLC than a C Corp, because it avoids double taxation in many scenarios.
The best of both worlds is to start as an LLC and only convert to a C Corp when and if you take Series A financing, in which case you'll be doing so much paperwork the conversion will be the least of your worries.
