Scalable Logos
Ideally, logos should be created first in a drawing program. Illustration or drawing software produces scalable vector artwork making them ideal as the all-around logo design graphics software. For commercial printing, scalable EPS graphics are the format of choice and import easily into most major page layout programs for creating letterhead, business cards, and other documents. Having the original logo in any kind of scalable vector format allows for easy resizing without loss of quality even if the final logo is needed in a bitmap format.
Examples of Vector-based Graphics Software for Logo Design: Adobe Illustrator, CorelDRAW, Macromedia Freehand
Fixed Size Logos
Designing logos for the Web, even if created initially with illustration software, requires conversion to GIF or JPG.
Examples of Bitmap Graphics Software for Logo Design: Adobe Photoshop, Corel Photo-Paint, Jasc Paint Shop Pro
From Jacci Howard Bear,