$1,200,000. College Athlete. 1099 Income.
Hereโs what nobody tells NIL athletes pulling real money:
The moment your first revenue share or NIL check cleared, you became a small business owner.
The IRS doesnโt care that youโre a student-athlete in college.
They donโt care that your earning window might be just a few years.
They want their cut. Today.
Hereโs what we did to keep serious money in his pocket instead of sending a check to Uncle Sam:
1๏ธโฃ LLC taxed as an S-Corp
Put him on his own payroll and paid him a reasonable salary. The rest? Taken available as distributions.
Stops 15.3% self-employment tax from gutting every endorsement check.
โ Saves tens of thousands of dollars.
2๏ธโฃ Maximize business deductions
Training. Recovery. Content production. Travel. Equipment. Agent and legal fees. Home office.
The real cost of running a 7-figure brand, finally run through the entity.
โ Saves tens of thousands of dollars.
3๏ธโฃ Solo 401(k)
$24,500 employee $47,500 employer = $72,000 deferred for retirement.
At age 20 with 45 years of compounding ahead, that single contribution can grow to millions of tax free money.
And we plan to do this every year that weโre earning 1099 income.
โ Saves roughly $26,000 per year.
4๏ธโฃ Pass-Through Entity Elective Tax
State tax paid at the entity level. Sidesteps the federal SALT cap.
โ Saves about $30,000
5๏ธโฃ Backdoor Roth IRA
$7,500 in. Tax-free growth for life.
At 20 years old, this is the highest-leverage account heโll ever own.
6๏ธโฃ Donor Advised Fund / his own Private Non-Profit
Builds a giving legacy. Aligns with his personal brand. Generates real federal deductions.
โ Saves $15,000โ$40,000 , depending on giving level
Total tax savings for 2026: $150,000
This is what we do.
Same story every time with NIL athletes earning 6 and 7 figures:
โ Treating the income like an allowance
โ Spending before structuring
โ Trusting the same tax preparer their family used for W-2 income their whole life
Youโre not a college kid with a side hustle.
Youโre the CEO of a 7-figure personal brand.
Your team should look like one.
๐ If you want to see where you stand with your money, take our Moment Money Quiz and find out in two minutes ๐