"Another article mentioned that an S-corp offers business owners three basic options for paying themselves: by salary, distributions, or both"

Where you read this must have been ancient. First, a non-working shareholder and a shareholder-employee get K1 from the entity. You never get a 1099-NEC from your own entity. The working shareholder is an employee and gets Reasonable Compensation for work performed as Payroll. The IRS is cracking down on that. You are not a contractor to your own entity. There is no draw, nor distribution in lieu of payroll.