In this episode of the Main Street Business Podcast, host Mark J Kohler welcomes Main Street influencer, Max Merritt, to unpack how student athletes can manage NIL income by forming an LLC. Together, they break down the key strategies and tax advantages available for NIL athletes into four easy sections.
Here's what you can look forward to:
- Mark and Max highlight the importance of structuring yourself as a business entity, such as an LLC, for tax planning purposes.
- They emphasize the need for professional advice when setting up the business entity to ensure proper tax strategies are in place.
- Mark and Max discuss the two types of income NIL athletes may receive.
- The significance of understanding state tax implications and strategizing residency for tax purposes.
- How to utilize an LLC as a powerful tool for tax planning and incorporating family members for additional write-offs.
- Reporting income to the IRS using Schedule C or E and the importance of maximizing write-offs
- How to be patient yet proactive in setting up the business correctly and continuing education on entrepreneurship.
