New Software Business: S corp or LLC???

Linda,

I developed a software program and would like to begin selling online in a couple of months. After reading several of your responses to other inquiries, I have a few questions:

1. Does it make sense to incorporate a small business like this? Or, should I simply claim any income on my 1040?

Assuming I should incorporate:

2. I have a full time job (70,000 salary)and get a W-2 yearly. For tax purposes, would I be correct to think an S Corp would be the way to incorporate for this type of business since it's simple and not much income would be generated this year? Or, would an LLC taxed as an S corp make more sense? What costs are associated with each?

I apologize for the novice questions. My simple mind says, "I have software I want to sell on my website", but there is so much more that goes into the decision!

Thanks in advance!