The LLC members are taxed on the income which is either pass to the owner through K1 if it is not a disregarded entity otherwise it is reported directly to the schedule C, E or according to the business activity.Paying taxes based on depositing money in the bank amount is irrelevant because it can a mixture of investment, loans, salary or others.u00a0 Additional tips for an LLC member:Salary is not allowed to an LLC, member unless file an election to the IRS to treat the LLC as a corporation or an S corporation for the tax purpose only.Disregarded LLC files income on the Form 1040 whereas as multi-member LLC files Form 1065.Most of the banks ask the operating agreement of the registered LLC to open a bank account.