For the income pass-through reasons, you're right that a S-corp or LLP is the way to go. If I recall correctly, the tax difference between the 2 boils down to how much you're going to make - that is if you make over $X per year you want one solution and if you make under $X you want the other. I was in a similar situation, crunched the numbers, and determined that an S-corp was the correct solution for me, but your situation could well be different. I believe an LLC/LLP also dodges the $800 / yr that CA demands of a corp for the privilege of doing business in its state, so that might also factor into your consideration (not so sure about that one though, my LLP isn't in CA).
You can always convert to a C-corp later, but it doesn't seem like it makes much sense for you now.