First of all, you mention common and preferred stock, which would indicate that you own stock in a corporation even though you call it an LLC, which would indicate it is a partnership.
If it is a corporation, the distribution you received would normally be considered a dividend and would be taxable as such, regardless of your basis interest in the business.
If you have a partnership interest, the distribution would not normally be taxable, as you would only include in your income your share of company profits for the year.
Your basis would only affect your current year income if you received distributions in excess of it, in which case you may have capital gain income. Also, if your distributions exceeded your basis, you would not be able to deduct your share of losses of the company until your basis had been restored to a positive number.
So, you may not have to be concerned about your basis when completing your personal tax return for the current year, but you need to determine what it is and keep track of it for the day when you liquidate your interest, as it will be used to determine you taxable gain or loss on the disposition of your interest.
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