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system
distribution rules llc vs. s-corp
user
llc is not a federal tax designation.  it's a state-level organization. your llc can elect to be treated as a partnership, a disregarded entity (i.e., just report the taxes in your individual income tax), or as an s-corp for federal tax purposes. if you have elected s-corp, i expect that all the s-corp rules will apply, as well as any state-level llc rules that may apply.   disclaimer: i'm not 100% familiar with s-corp rules, so i can't evaluate whether the statements you made about proportional payouts are correct.
assistant