I don't know a lot, but I've done a few workshops and worked with some startups. Are you thinking of hiring regular or contract employees? Regular can be a headache, because you have to get an employer ID number and do a lot more paperwork, like calculating employee taxes and deducting them from their wages. You also become obligated by law to provide various things for your employees, like an option for health care coverage (I think, this is third hand info).
An LLC is more appropriate if you want your business to function like an independent entity, paying its own taxes, and with its own liability for debt (if you went under, they couldn't take your life savings). Sole proprietorships are a lot easier to manage but you're also personally liable for anything that goes wrong.