A single member LLC by default is a disregarded entity and you would include the income or losses on Schedule C of your 1040.
Based on what you explained did you in fact complete and file a form 8832 and checked box 6(a) indicating that you want to be taxed as an association? If you did, then you should have received correspondence from the IRS accepting your classification.
If in fact you did that, then in order to be an S corp, you needed to file a form 2553. If you did this, then you should have received a letter from the IRS indicating that they accept your S corporation status.
If the answer to both of the above questions is "yes", then you need to file an S corporation return form 1120S. You will then use the Schedule K-1 from the S corporation return and include that information on your personal return on Schedule E.
And the issue of paying yourself a reasonable compensation, this is a hot issue with the IRS. Of course, the key here is reasonable and this is definitely based on facts and circumstances. I would recommend you discuss your situation with a tax professional who can provide you with some guidance and get you going in the right direction.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
