Interesting, that's contrary to what I've heard from multiple sources (and pretty much all literature about the subject that I can find) about S-Corp distributions (again assuming you are being paid a market salary that you would hire someone at to perform similar tasks).
"If you have a pass through entity of some sort (S corp, LLC, etc) you can avoid paying payroll taxes on distributions and also avoid double taxation."
What you're talking about does not apply to LLCs, it is a special situation only related to S-Corps. Generally speaking, pass-throughs such as LLCs all distributions are taxed as self-employment wages, except under certain conditions.
