from an income tax standpoint each member is issued a k-1 for their share of income/loss, deductions, credits and distributions. the k-1 uses the terms "shareholder's" and "corporation". Thus, there is this technical difference. an LLC not electing S-Corp can make disproportionate allocations. An "S-corp" that did this may be deemed to have a second class of stock which would void the S-election.
