A single member LLC is a disregarded entity and it files as a Sole propreitor on Sch C. As a single member LLC you do not take salary. Net income from the LLC activity will be subject to self employment tax.

S Corp is not a different type of Corp that you incorporate(at the State level). You can either for a Corp or a LLC and than apply to IRS for S Election. It is a method of filing with the IRS. I mean remain as a LLC but file as a S Corp for tax purposes.

The benefit to waiting is that you can save professional fees and other costs related to keeping up with the formalities until the business is stabilized and you are ready for it since in the initial couple of years you may not have too much in profit to worry about the self employment tax burden.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.