There are a lot of interesting points made above which made it hard to make a decision. But from my research I would go with an LLC. As a mid sized company you can start as an LLC and change it to a INC later. The common advantages of an INC and LLC are-
– Limited liability
– No double taxation
– Pass through of losses
Of course if this is a growing company, as an LLC there is more flexibility for the owner on the decisions made for the company. This is the reason why I would go with the LLC just so the owners can have a say in the company operations. There is always an option to become an INC later on.