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[RedKing]

I do a bit of both as well. Usually start with a fortified base camp aboveground to protect my stockpiles and early workshops and trade depot. Once I get some decent living quarters and storerooms carved out underground, then the base camp just becomes a fortified trading post. Depot, storerooms for trade goods (if I've got lots of stone to work with, I build warehouses out of all the blocks), a small office for the broker, watchtowers, and a small barracks and armory.

I'm also fond of building series of defensive walls if the terrain is favorable (canyons, narrow valleys, etc.)