The California LLC situation kills me. It's due at the time you set it up, so it's not like you get a buffer. They've also closed the loophole of setting it up out of state since they base the fee on where you operate, not where you formed. However, other than the taxable income mentioned before, there's the benefit of legal protection. If you're running things without some sort of entity and step on some toes you can be held personally liable and then your assets on the line. The personal asset protection makes it worth it in my opinion.
Assuming I will be able to do an October challenge for $1 some day, I'm not too concerned about taxes just yet. Although you never know I come up with the next flappy bird. The protection is something I have been wondering about. I already checked with my accountant on fees and setup etc., doesn't seem like a big deal beyond initial setup. He did say annual meeting notes and other obligations are absolutely necessary to make it legit or the protection is out the window, LLC or not. Just a certificate and a bank accountant are not enough.
I guess I'll wait a bit longer, but if I put anything on an app store or so I'm thinking that may be the time to do it (realizing the time lags there, thanks for the tip). My non-compete is clear as long as it's not related to the products we work with, which it sure isn't.