if you are an owner of an LLC, monies you receive from it are called "guaranteed payments" and can be to compensate you for labor, use of capital, or both. those payments will be listed on the K-1 given you by the LLC, and you will be taxed on your 1040 as self-employment income.
If there is a surplus of funds after the LLC has received revenue, paid expenses, and paid guaranteed payments, the residual is credited to each owner's (owners are called members) capital account. The individual pays taxes on that money the same way, even though the cash stays in the LLC's bank account. It can then be dispersed some time in the future, and the capital account is debited accordingly.
as far as tax advantage- the important question is compared to what? compared to a partnership or sole proprietorship, the taxes will be exactly the same.
don't know a whole lot about s corp, but there is the advantage of not having double taxation if comparing to a c corp.
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Today's Featured Article - Grain Threshing in the Early 40's - by Jerry D. Coleman. How many of you can sit there and say that you have plowed with a mule? Well I would say not many, but maybe a few. This story is about the day my Grandfather Brown (true name) decided along with my parents to purchase a new Ford tractor. It wasn't really new except to us. The year was about 1967 and my father found a good used Ford 601 tractor to use on the farm instead of "Bob", our old mule. Now my grandfather had had this mule since the mid 40's and he was getting some age on him. S
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