Course 5.3 · 60 minutes
The S Corporation: Election, Reasonable Salary, Basis, and the Traps That Blow It Up
Decide whether an S election saves you money, make the election correctly even if you are late, and run the S corporation so you never lose the status.
- Who it is for
- Owners netting more than the payroll cost of the election, and everyone who already elected.
- Runtime
- 60 minutes · Headliner course
Pre-order: this course is still in development. Your purchase includes its materials as they are published in your portal. No release date is confirmed. Buy 5 or more and every course is 30% off.
After payment is confirmed and your access is set up, the files listed below can be downloaded from your portal. Any unpublished materials will be added when ready, at no additional charge.
Files currently available
- Savings Calculator Guide.
- Savings Calculator.
- Form 2553 Walkthrough and Late Election Statement.
- Eligibility and Annual Compliance Checklist.
- Shareholder Basis Tracker Guide.
- Shareholder Basis Tracker.
- One Class of Stock Operating Agreement Audit Checklist.
- Slide deck.
- Visual: Roadmap.
- Visual: Status Not Entity.
- Visual: Savings by Profit.
- Visual: Eligibility Map.
- Visual: Election Timeline.
- Visual: Reasonable Comp Factors.
- Visual: Basis Ordering.
- Visual: Distribution Tiers.
- Visual: Worked Example.
- Visual: Tricks.
- Visual: Traps.
- Visual: Decision Tree.
- Workbook.
- The narrated lesson. 60 minutes, cued to the deck, with chapter markers by lesson. Added to your portal when published, at no extra cost. This purchase does not guarantee that the narrated lesson is available today.
What the course covers
- 01What an S corporation is: a tax status, not an entity5 min
- 02The savings and when they are real: profit levels and the cost of payroll7 min
- 03Eligibility: who can own it, one class of stock, and the trusts that qualify7 min
- 04Making the election: the form, the deadline, and late election relief with the statement8 min
- 05Reasonable compensation in one module5 min
- 06Basis: stock basis, debt basis, losses, and the form that tracks it8 min
- 07Distributions, the accumulated adjustments account, and the built-in gains tax after a conversion6 min
- 08Worked example: a 200,000 dollar profit as an LLC versus an S corporation, with retirement and the twenty percent deduction8 min
- 09Tricks of the trade: the pass-through entity tax election, health insurance on the W-2, and the accountable plan4 min
- 10Mistakes and traps: the ineligible shareholder, the second class of stock, and inadvertent termination relief2 min
How it fits: Headline course. Requires 5.1 and 4.3. Pairs with 4.6 and 5.6.
The standard every course holds
- A narrated lesson of 45 to 60 minutes, produced as audio
- A designed slide deck you download and keep
- A computational workbook that runs the actual legal tests
- A toolkit of checklists and protocols
- A legal authority appendix carrying the two-pass vetting protocol
Written for a diligent reader with no legal education. Professionally narrated using a studio voice model of Brian T. Boyd. The course is recorded instruction, not a live consultation.
Where this course sits
Track 5: Entity Types for Businesses
This course is one step in a track built around a single outcome. See the full build order and the other courses that get you there.
Back to this trackEducational material from the private client curriculum of Brian T. Boyd. This is legal education for a general audience, not legal advice, and no attorney-client relationship is created by purchasing, viewing, or using it. Tax outcomes depend on your facts and your state.