The distinction is important because if an employer classifies a worker as a contractor who should be an employee, the employer can be liable for withholding taxes, even if they already paid the worker.It's worth talking to a CPA or lawyer about your worker if you are not sure.

MINOR or MAJORMost counties in this area make a distinction between “minor” and “major” subdivisions.

What is the functional or legal distinction between an office that has a kitchen and bathroom and an apartment?

(I make the distinction between a city that allows Airbnb through an active law, and a city that allows it only through a lack of law prohibiting it.

You live in the basement, which is a separate and distinct dwelling unit (i.e. its own kitchen and rest room). 

It is important to make this distinction rather than lumping the entire state together.

@Carlos Perez,The distinction between "apartment" and "condo" is usually based on the building.

I have a Bachelors degree in Business Administration with distinctions in Real Estate and Finance. 

It's not an LLC, no checkbook IRA, just good old boring SDIRA stuff, if there is such a thing.2) Separate from that, and distinctly different, I have formed an LLC (IEC Ventures) in which I will work with JV partners and private investors on other NPN's.  

Why the distinction between LLC and a Corp or Sub S corp, I have no clue, but learn what the rules are and you can then create a perpetual machine!!!