Hoo boy. This is a huge mess. TLDR: There's no tax on the withdrawals (most likely). The bigger issue is paying taxes on the LLC's gains all along.
Here's the problem: It's very unclear whose taxes the LLC passes through onto (if anyone). You say the LLC is in your name, but your father was doing all the paperwork and taxes. If you weren't adding detail to your taxes to accommodate the LLC, that means he's been taking it on his taxes -- or it's been neglected altogether. We need to review the principles of how LLCs work.
Tax Treatment of LLCs
In its simplest form, an LLC is a "disregarded entity" as far as the IRS is concerned. In that configuration you get the liability shield, but with less of the paperwork of a corporation. However that's only one of three possible configurations.
- Unlikeliest first: An LLC that chooses to be taxed like a corporation. It files its very own 1040 (actually 1120) on its very own SSN (actually EIN). This is a mooseload of paperwork; I seriously doubt you did this. If you did, you can't just grab money; you must document it as salary, distribution (think dividend) or loan and then the person receiving it must pay income tax or dividend tax on it, there's your double taxation.
- A Single-Member LLC which elects pass-thru tax treatment. This means the LLC's profits and losses simply get reported as a schedule on your (or whoever the Member is)' personal 1040. IRS disregards the LLC; they don't care what belongs to the LLC vs what belongs to you. You still get the liability shield; that's not IRS's problem.
- A Multiple-Member LLC with pass-thru. Profit and loss still just passes through to the various Members' personal 1040, but it is split amongst the Members in some proportion.
On the pass-thru LLC, the Member(s) must pay taxes when the LLC earns it, not when they withdraw profits. For instance if in 2018 your LLC grossed $40,000 on expenses of $30,000, but it distributed $5000 to Member(s) in 2019.
- The Member(s) should have reported and paid taxes on the $10,000 in 2018.
- Taking it out in 2019, it's not taxed again.
Control of LLCs
LLCs can choose to be Member-Managed, or Manager-Managed. With Manager-managed the Members get no say in the business affairs.
This can create fun tax situations where the Manager makes a lot of profit in 2018, but decides not to distribute any profits to the Members, so they don't have any money to pay the tax with.
I suspect you might have a situation where you're the Member, but your dad is the Manager. But I don't know. You have to look at your paperwork. Every LLC is different.
Why it's OK to take the money now
Presuming this is a Pass-thru LLC:
If you are the Member, then taking the money is simply a distribution. IRS is already disregarding the LLC and treating its assets as your personal assets, so taxes don't need to be paid because they were already paid, right?
If he's the Member, then this is him taking a $200 distribution and then giving it to you as a family member gift. The first $15,000/year of gifts between family members are tax-free.
If you both are Members then it's both happening at once.
If this is a corporate-taxed LLC (why!?) then it's a mess, consult your accountant.
BUT YOU NEED TO (go back and) PAY TAXES
Whoever the Member(s) are, they need to make sure they are paying taxes on the LLC's profits on their personal 1040s. That means somebody needs to go through the accounting books of the LLC and do a "proper accounting" balance sheet and Profit/Loss for the LLC, and figure out what the P/L income and expense is. Then pass that through onto the Members' personal 1040 taxes.
And you need to go back into every previous tax year, forever, and make sure that was done. If you filed your taxes incorrectly, you need to re-compute your taxes again, and file a Form 1040X for each tax year to amend your taxes, then pay the tax and interest.
While you're filing 1040X, also look for any tax deductions you might have missed. You can take those for the last 3 tax years (i.e. for 2016 taxes due April 15 2017, you can amend to claim deductions as late as April 15 2020).