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Distributions from the S-corp are not subject to FICA/SE...

I suggest that you spend a couple bucks and run it down with a CPA.

It doesn't really matter what your business does. In your articles, it will say something like, "The purpose of the business is to sell widgets, but the business has the right to perform any activity permitted by the corporation code." (Which basically means you can do anything...)

You won't be precluded from getting into a certain type of business because of the entity that you select.

ndp125 depending on your business you could go either way but LLC has advantages that S doesn't. the other thing is that you can transfer assets between the two. LLC has the great advantage that it hides your assests like an umbrella, so i.e. if you were to own a house (and by the way, if someone owns a house here under their name you are exposing yourself to uncessary risk, always have it under your LLC name) - so if you were to own a house or a business and it is under your name, for any reason you could be sued and may lose the whole thing... especially if you are in CA where you don't have to be right to win the case... (I am sure we know a few cases like that)

America has 7% of the world's population but 72% of the world's lawyers... (A Fun fact for you

if it is under the LLC however, it would be pretty much impossible to lose anything IF you don't expose openly what you have or make a bad move like from your personal name to LLC or from LLC to S. (I would suggest transfering your major assests like a biz or a house from your personal name to S and then to LLC - these are foreign for most people but that is why legal advisors exist)

See LLC is like a box, you put the lid on it, you control it, but no one can peak in to see what you got inside... IT SERVES TO PROTECT YOU.

Now, I can go on on this, but I will just say that if it was me, regardless of how much I know, I would still speak with a legal advisor that specializes on this.

Do NOT talk with an accountant for this, accountants know how to do taxes and number, this has to do with the laws, unless they have experience on this firsthand... I would still personally speak with an experienced attorney that specializes in this!

I hope this helps,
Nik