I play almost exclusively by memory. It's incredibly easy when you know theory. My friend handed me a sheet of tabs to a really complicated song and expected me to follow along once, and I was screwed. I can read music better than tabs, but as for writing, I just record it.
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I use tuxguitar, which is a tab software. I like it cause you can layer all your tracks and it'll play back for you, skipping the whole demo recording step.
So much quicker to just record guitar parts straight into Reaper through an audio interface and use some free amp simulation software.
It depends if I want to play with other musicians or not, usually notes though be ause its very visual. Yu see the notes actually going up and down
Tabs or just remember the song I can't read guitar music. But, the only time I really write with tabs, is when I am not going to be around my guitar.