Reduce Self Employment Tax

An LLC can elect to be taxed as a corporation but a corporate dividend represents double taxation of dividends. So most likely only a regular salary would be taken out of a corporation.

A salary still owes income tax and Social Security tax but the salary is not a complete pass-through of company profit. Much of the profit of the corporation will build-up in the value of the corporation.

Now if the corporation receives dividends then up to half of those dividends don't face double taxation when the corporation passes its own dividends.