Your skem for the LED driver will work, but you should add a 10K resistor in series with the base to limit base-emitter current.
When you first connected the LED directly to the controller pin, did you have a current limiting resistor in series with it? If not, the LED may have been drawing more current than the line could handle. Also, most devices can sink more current than they can source. In that case, connecting the anode of the LED to the positive supply through a current limiting resistor and the cathode to the controller output might work. But then the LED will light with a LOW from the controller. It all depends upon what you need.
Dean