Based on this response I am fairly certain you do not know what anything I have discussed is, but that's okay. If you would like me to elaborate I will.

An S Corp is an IRS designation and David is almost certainly one as he is an LLC (No reason not to be--Limited Liability meaning he can't lose his house if he gets sued). Natalie is not paid on the value of the corporation and I never said she was, but the company can afford it because it is so little. Jack takes 15% so he is paid on the revenues--not value. Natalie is paid on her relationship to David and the value she adds which happens to be a drop in the bucket as we come full circle.