1) Assuming that you purchased a fully-functioning business that was already running then there isn't a tax advantage to the purchase at this time. You have made an investment and the purchase price represents your 'basis' in the business. If you sell the business next year you will pay taxes on the profit of the sale which is the sale price minus the basis in the company.
2) The treatment of an LLC purchasing a business is the same - the investment is a capital investment and added to the value of the business that is doing the purchasing. I suppose the advantage is that a business that owns a lot of other businesses is more valuable.
PS - No, we're just an online chat today. I'm funny looking. You wouldn't want to see me anyway.
@MauiMc
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