There is downside to S-Corps. Lots more regulatory requirements, minutes, and tax forms required. As a general rule of thumb assuming you are a single person company it doesn't make sense unless profits are greater than at a minimum of $150,000 a year. At that level you can pay yourself a "reasonable" salary say $80,000 and then lump dividend for the rest which is taxed at 15%.
"unless profits are greater than at a minimum of $150,000 a year."
Ok, sure. Similarly, an LLC is probably overkill if you're making under $100k. I'd argue it's a minority of entrepreneurial software consultants who make over $100 but under $150. Finding a good accountant to help you figure it out (and to handle the paperwork) is also likely to help you join the S-Corp cohort.
No one else agrees LLC is overkill if making under 100k profit. I would in fact encourage LLC from day 1 for anyone making anything.
(and just auto converting to S-Corp at 150k is also silly, talk to an accountant. Many reasons to be a LLC even if making millions of dollars a year, see many real estate LLCs or companies with 100-1000 employees but still a LLC)
