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A comment on My First Year as a Freelance AI Engineer. Parent comment

Re:My First Year as a Freelance AI Engineer by pdevr on Sunday May 03, 2020 @05:18AM (#23057877)
LLC can elect to be taxed as an S-Corp. Best of both worlds.
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Re:My First Year as a Freelance AI Engineer by aantix on Sunday May 03, 2020 @07:11PM (#23062665)
What are the distinctions?
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Re:My First Year as a Freelance AI Engineer by pdevr on Monday May 04, 2020 @08:42PM (#23075100)
A lot to write about, but in a nutshell:

LLC is a business entity type. S Corp is a way to be taxed.

With LLC, life is simpler (formation, filing taxes, maintenance). With S Corp, you can distribute the profit as dividend (at a lower tax rate) after paying yourself a reasonable salary.

Edit: I just noticed that you'd posted the original comment in this thread. So, LLC electing to be taxed as an S Corp means simpler filing requirements (as opposed to C Corp and the like), coupled with the ability to distribute dividends.

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