How is the LLC income reported?
The IRS considers the single member LLC to be a “disregarded” entity. That means, it is reported for tax purposes exactly the same as a sole proprietor with no additional reporting requirements. That’s still a part of the GOOD, ease of reporting income.
A multiple member LLC comes under the partnership tax rules. Thus, a partnership tax return is required. In a partnership, partners take draws and do not have the same distribution rules as do “S” corporations. Substitute the word members for partners. That’s GOOD.