As to your second question – unlike a C corporation where the company pays the tax on any profits (or an individual pays taxes on any dividends distributed by the company), the IRS considers an LLC to be by default, similar to a partnership or a sole proprietorship depending on whether there is a single member or multiple members (under certain circumstances, if the proper paperwork is filed with the IRS, an LLC can be treated similar to a corporation - not a very common situation).
As a partnership or sole proprietorship, all profits or losses are reflected on the members’ individual tax returns (in accordance with their respective percentage ownership of the LLC). Any distribution of cash to members does not have an effect on the amount of profits that are reflected on the individual’s tax return. The reason the cash distribution is not taxable is that in effect, you are already being taxed on the profits.
Any distribution of cash from a business account to a personal account will only reduce your equity in the LLC. Think of it like owning a house that is worth $200,000 and your mortgage is $150,000. Your equity is $50,000. You take a second loan of $10,000 against the value of the house. Assuming the house is still worth $200,000; your equity is now $40,000. You are not comingling your personal funds with business funds by taking a distribution.
I hope this helps. Feel free to send me an email if you would like to discuss this further.