I think this question depends heavily on the business being started. In my case, I have an interest in medicine and would probably open a clinic as an LLC. As an LLC, my company would be separate from my personal liability, and there would be a benefit in terms of taxation when compared with an Inc. or corporate classification. LLCs also allow me to grow my business with the help of other professionals and I would be able to pass on the business to the next generation of operators. If the business were to grow dramatically, I would consider making the switch to a Inc. and going public. However, this would be a drastic and costly step, and would not be the first step of my business venture.