This is not really good information for California, but then this is a syndicated article, not locally written.
If you're not going full-on Delaware C-Corp like YC does and you're going to incorporate in California, I really think most startups would prefer an S-Corp over an LLC.
If you're not going full-on Delaware C-Corp like YC does and you're going to incorporate in California, I really think most startups would prefer an S-Corp over an LLC.
Feld's VC perspective on structure: http://www.feld.com/blog/archives/001539.html
The California tax perspective: http://www.taxabletalk.com/posts/1138032374.shtml
Furthermore, CA C-Corps don't have to pay the $800 minimum franchise tax in the company's first year: http://www.taxes.ca.gov/CorpC.html
I don't think LLCs get the same privilege.