I From the IRS standpoint, shareholders of the LLC have to pay taxes on the % share ownership of the earnings the LLC regardless of the actual distribution of earnings, which is up to the LLC itself. The LLC may decide to keep that money and reinvest in the company for instance. If for instance, a member owns 25% of the LLC and the LLC made $100K, the shareholders has to pay taxes at his/her tax bracket rate on the $25K (25% of $100K). But that does not mean he/she received $25K for that transaction.
From the IRS standpoint, shareholders of the LLC have to pay taxes on the % share ownership of the earnings the LLC regardless of the actual distribution of earnings, which is up to the LLC itself. The LLC may decide to keep that money and reinvest in the company for instance. If for instance, a member owns 25% of the LLC and the LLC made $100K, the shareholders has to pay taxes at his/her tax bracket rate on the $25K (25% of $100K). But that does not mean he/she received $25K for that transaction.