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 - The Ferguson System Principal An implement cutting through the soil at a certain depth say eight inches requires a certain force or draft to pull it. Obviously that draft will increase if the implement runs deeper than eight inches, and decrease if it runs shallower. Why not use that draft fact to control the depth of work automatically? The draft forces are
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