LLC or S-Corp

I often get asked whether a new business should form as an LLC (Limited Liability Corporation) or an S-Corp. My non-lawyer answer has usually been that, generally speaking, an S-Corp is a bit simpler and cheaper to set up, so unless an attorney has specific reasons to go with an LLC go with the simpler and cheaper option.
There is a lot more case law on S-corps so their rules have been ironed out more clearly over time (one of my personal business goals was to never have my name or our company name in a famous case in the tax laws). However, for most businesses the differences are not that significant so if you get set up one way or the other by your attorney don’t worry about it too much. Establishing good cash flow is much more important!
If you like to explore the intricacies of the legal pros and cons of each approach to organizing your business, has a very comprehensive overview. Reading such things makes my hair hurt, however.
Some states are moving to make forming and maintaining an LLC simpler. For example, Tennessee just enacted such legislation.
It is not a life or death decision, but is one that can be intimidating for first time business owners. You will get conflicting advice. The best course of action is to talk over your long-term business plans with your attorney and your accountant making sure that the organizational form you pick fits your vision for what the company will become. For example, a business that will likely try go public in three years may need a different approach to legal formation than a business that never plans to have more than the original two shareholders.
Also talk through costs with the attorney. There are fees to set up the legal entity charged by your lawyer, fees that the state charges to file your legal entity (different for LLC vs. S-Corp in many states), and on-going yearly fees due to the state (varies by state).