id10t,
You are several weeks ahead of me. I recently purchased "Copyright Your Software" (2001) which I found to be extremely helpful. It looks as if this has been replaced with the more recent (2007), "Legal Guide to Web & Software Development" - both of these are published by Nolo. I have not ventured into the realm of actually starting the business because I have yet to do the beta testing (this will start at the end of February).
The information contained in the two abovementioned books answered many of my questions and educated me on some of the finer points in regards to questions that I
should be asking the intellectual property lawyers and CPA's. I applied for the copyright at the beginning of this year. The book shown below, "LLC or Corporation", (Nov 2008), specifically addresses your question. This would, in my opinion, allow you to understand the process as well as the advantages and disadvantages
prior to talking to the experts. Additionally, with your new knowledge gained, you would be asking the right questions. If interested, these are easily sourced on Half.com (in fact, I just purchased a new one one moment ago for $10).
http://www.nolo.com/product.cfm/ObjectID/47715F77-6A7A-4499-BDD17170C80AA328/111/182/
I very well may be soliciting advice from you in the very near future.