In this episode of the Main Street Business Podcast, Mark J. Kohler and Max Merritt reveal how NIL athletes can turn short-term earnings into long-term wealth. From forming an LLC to electing S corp status and leveraging mega Roth strategies, they lay out the playbook every young athlete—and their advisors—should follow.
Here are some of the highlights:
- Mark emphasizes the similarities between athletes and entrepreneurs, highlighting the self-discipline required in both fields.
- Max notes that many college athletes become entrepreneurs, often owning their own businesses.
- The importance of treating NIL income as a business transaction, suggesting the formation of an LLC and potential S corporation election.
- Mark warns against signing NIL contracts in the athlete's name, suggesting the use of the LLC to protect the athlete's interests.
- Mark and Max explain the concept of the mega backdoor Roth IRA, allowing athletes to save up to $70,000 annually in a tax-advantaged account.
- The potential for athletes to save significant amounts in retirement accounts like the solo 401(k).
- Mark encourages athletes to seek professional advice from tax lawyers and financial advisors to make informed decisions about their income and investments
