[cullenking]

Again incorrect, all company profits are taxed regardless of whether you withdraw it in the form of distributions. If you withdraw distributions in excess of your basis (your share of accumulated profits/losses in the company, it can be negative or 0) then yes the distributions you take above your basis are then taxed as capital gains. Don't do that. I strongly advise finding a reliable, recommended professional to talk to about this stuff. We found a fantastic guy through our business lawyer, wish we would have found him earlier.

[delinka]

It boils down to this: don't trust search engine results and search out a competent professional. The problem I see is knowing who the competent professionals are.