LLC is definitely the most flexible business structure currently available, but it comes with a high price tag in California (>$1k once you've paid the attorney, and that's every year). Depends on how good your margins are and what kinds of things you'll be having your employees do, but if liability exposure isn't a big concern, hang onto DBA status as long as possible.California is an amazing place to live, but a lousy place to be in business. If you're not tied to your current location, the best advice you'll get is to get setup in Nevada ASAP. Your balance sheet, stress levels and sinuses will all thank you often and profusely if you do.
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