Following this strategy wouldn't allow you to avoid reporting the gain on your tax return (in the case of an early distribution). You would pay not only the 10% additional tax, but you would also owe taxes on the gain that you would be forced to report. If you're treating the LLC as a subchapter C entity, the IRS would likely look through the transaction and subject you to the same tax implications as if the entity did not exist. See the example with Justin in Publication 590-B.

https://www.irs.gov/publications/p590b#en_US_2016_publink1000231064