LLCs and Subchapter S corporations are not taxed directly. Rather, the partners/shareholders are taxed on the profits of the company.
Now, you mention "salary". So you could receive salary from the LLC as an employee, or receive distributions from the company as a shareholder, or both. If you receive a salary, there's no question about taxes: you must pay tax on that income and FICA (SS/Medicare) as well. The company as your employer must match your FICA tax.
If the company makes a profit on its passive income (e.g rent), you will pay income tax on your share of that profit. There is no FICA tax on passive income, either for you or the company.
Now if you have self-employment income as an LLC member, you will have to pay income tax and self-employment tax. The self-employment tax covers both the employee and employer shares of FICA.
In theory, the taxes the IRS collect on your business and its employees should be the same whether it's an LLC, a partnership, or just you as an individual self-employed person. At this point I'm pretty well over my head, so I'll let someone else step in and set matters straight.
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Today's Featured Article - Usin Your Implements: Plow and Disc - by Curtis Von Fange. Introduction: Dad was raised during the depression years of the thirties. As a kid he worked part time on a farm in Kansas doing many of the manual chores. Some of the more successful farmers of that day had a new time saving device called a tractor. It increased the farm productivity and, in general, made life easier because more work could be done with this 'mechanical beast'. My dad dreamed that some day he would have his own tractor with every implement he could get. When he rea
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