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 David Brown Rose Badge - by Samuel Kennedy. In the 13th century civil war was raging in England. Two English noblemen were involved in a conflict which became known as the War of the Roses. The Duke of York had as his emblem a white rose and the Earl of Lancaster had a red rose. Today the white rose is the official emblem of the county of Yorkshire and the red rose has been adopted by the neighboring county of Lancashire.
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