[ajoy39]

you don't pay corporate taxes with a pass through LLC. You deduct your expenses from your income, and the rest gets passed through the LLC to you as personal income. So you're getting taxed on less because you can essentially write off any expense that you can justify as being spent on the corporation itself.

The downside is, usually, that you get taxed on ALL profits personally no matter how much you actually withdraw from the LLC but if you are the only member and you're just using it for tax purposes that's less of an issue since you intend to take all the money anyway.

Disclaimer, I am not a tax professional, and I do not actually do the taxes/distributions for the LLC I part won. This is just how it was explained to me by the person who actually does those taxes.