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Generally LLC is not taxable entity - all income should be passed through to members and should be reported on individual tax returns regardless it was distributed or not. Distributed income is likely self-employment income and 15.3% self-employment tax would be required.
An LLC that has only a single member and is not required to be classified as a corporation will automatically default to the classification of disregarded entity. The disregarded entity files as a sole proprietorship and completes the appropriate schedules as part of the single owners Form 1040.
If the LLC is a sole proprietor for federal tax purposes, it should generally file Form 1040 Schedule C, Profit or Loss from Business (Sole Proprietorship)
Payments to the member are not qualified business expenses (unless payments are classified as wages) and therefore may not be used to reduce the taxable income.
You should not report Guaranteed Payment to the member on the schedule C.
You are correct - Guaranteed Payments is the way for as a member to distribute income from your business - that may help you in having clear books - but has no affect on taxes.
Guaranteed Payments are not deductible business expenses.
For deductible business expenses - please see the IRS publication 535 - http://www.irs.gov/pub/irs-pdf/p535.pdf
On the other hand - all LLC net income is taxable - regardless if it was distributed to the member or not.
If your profit grow - you may convert your LLC into S-corporation - that will allow to pay yourself wages and distribute the rest as dividends. That will provide some tax saving.