Emptying out the bank account has no effect on taxes, and is not a wise move from a business standpoint. If the LLC has elected to be taxed as a partnership or as an S Corporation, a 1065 or 1120S will be filed. Each owner will receive a K-1 indicating their share of the profits. They would pay tax on their 1040 based on the numbers on the K-1. In short, you are paying tax on the profits, not the distributions. If you elected C Corp status, each owner would receive a 1099-DIV for any dividends received and report that on Schedule B of the 1040.