Which Corporate Structure Should An Affiliate Pick?

I've been reviewing document after document of the differences and benefits of each type of Corporation. I even contacted two Internet marketing gurus and to my surprise both replied. I first contacted Jeremy from www.Shoemoney.com with an email asking why he uses and S-Corp. His reply was much appreciated but it didn't shed a ton of light.

well our lawyers set all that up... I don't really understand it that much... I know s-class passes through to your personal income tax rate but we own some LLC stuff like auctionads was/is a LLC

this are our current companies.
< list removed... I dont want to list them just in case he didn't want them to be published >

So then I contacted Paul from www.UberAffiliate.com. Paul had some helpful advice and gave me some great links to websites such as Incnow.com which is the service I plan to use.

While I have not yet come to my FINAL conclusions, perhaps you can help me make my final decision.

So what should I choose to minimize my taxes while protecting my assets? There are three choices that I have looked over.

1. C-Corp
2. S-Corp
3. LLC

First, the C-Corp is out. It's just not for me. Next.

By far the LLC is the easiest business model to pick from. You can pick how you want to be taxed (as a corporation or as an individual) and all income is passed through to you. This means that if I made $80,000 a month profit, I'd be paying taxes on all $80,000. Ouch. The nice thing about the LLC is that it's rather informal compared to the other two choices and does not require any meeting minutes or many documents. Essentially this would be the easiest to transition into.

The other nice thing about the LLC is that the company finances can be divided however I see fit.

Now the S-Corp. So far it's been a hard choice between the S-Corp and the LLC. I'm leaning towards an S-Corp more right now because of the Tax benefits. Let me explain. In an S corp, only the salary paid to the employee-owner is subject to employment tax. The remaining income that is paid as a distribution is not subject to employment tax under IRS rules. Therefore, there is the potential to realize substantial employment tax savings.

Here is a sample of the differences between an LLC and an S-Corp.

Mary owns a print shop. In keeping with the industry standard, Mary decides that a reasonable salary for a print shop manager is $35,000 and pays herself accordingly. Mary’s total earnings for the year are $60,000: $35,000 paid in salary and the remaining $25,000 paid as a distribution from the S corp. Mary’s total employment tax is $5,355 (15.3% of $35,000).

If Mary were the owner of an LLC, she would have to pay employment tax on the entire $60,000, equaling $9,180. But as an S corp, she realizes savings of $3,825 in employment tax.

[Source]

Now, I figure that since I am a PPC Marketer, I can realize the Salary of a standard Pay per click manager or Affiliate manager. I need to find out how much that is. This will help me get around the whole "self-employment" look on all the loan applications and such.

It seems like it's 10x harder for self employed people with good records to get loans and stuff. (My Dad has run small businesses for 25+ years so I'm not speaking from personal experience)

The downside to the S-Corp is pretty big however.
1. You have a lot of formalities and documents. Doh that's not fun. I guess not everything about owning a growing business can be fun.
2. You have to pay Employee tax as you go. This seems like a very daunting and scary task. Thankfully my dad uses this great service called ADP to do payroll and they take care of all that employee tax. So I figure I could use them for this part. With the LLC you just pay self employment tax once at the end of the year (something like 15.9%).

So all that being said and done, what have I decided?

Am I ready for an S-Corp? It's a big step.

Either way I plan on incorporating an LLC or S-Corp sometime around January 16th-ish.

I plan to contact a professional before doing so, I just need to think things through before I spend money on expensive conversations.