LLC that is taxed like an S Corp

The owner of a LLC (sole proprietorships) has to pay federal income tax and self-employment tax on the net income of the LLC. S Corp's don't have to pay SE tax but must pay the owner a salary (which is taxed for social security and medicare). The net income (after the salary to the owner) is free from SE tax and can be distributed to the owner. Federal income still must be paid on this income; however, the owner avoids SE tax which is the major tax benefit. If your LLC isn't going to make a profit in excess of what the owner's salary is going to be then an LLC is the better way to go to save tax dollars as you can avoid a bit of SE tax that would other wise not have to be paid. I'm pretty sure Obama is going to take away the benefit of the S corp SE tax avoidance in the near future so I'd just start the LLC if you don't plan on having any other stock owners of the potential S corp.

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one simple form to the IRS after you form the LLC, that's how I'm set up

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Same here.

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one simple form to the IRS after you form the LLC, that's how I'm set up

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Actually it takes two forms to have your single member LLC taxed as an S corporation. The first, Form 8832, allows you to have your disregarded entity taxed as a corporation. A single member LLC's default is to be taxed as a disregarded entity. Then you complete Form 2253 elecing S corporation status.

8832 is no longer necessary, just file the 2553.

Just make sure as an S-Corp, you take a "fair salary".