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Message: [QUOTE="Lafayette, post: 5275370, member: 14008"] Tax pro here (side job, but I run a tax nonprofit for inner city tax payers)... LLCs are state business entities that have the following characteristics: 1. Are setup as Member or Manager (e.g., equity is as a % owner member or manager). 2. Is a pass-thru entity like S-Corps, Sole Proprietors are - meaning the LLC does not pay taxes, just files a return and members/manager pay taxes personally 3. If 1 person in the LLC, the IRS will tax like a sole proprietorship (Schedule C) and disregard the LLC; if there are > 1 members/managers the default is partnership taxation whereby the members/managers get a K-1 at year end (similar to W-2 employee year end). Some interesting aspect as it relates to college athletics (e.g., Kentucky at the moment) 1. Like most public universities, donations without strings are 100% deducible to donors (meaning if someone gives $10k to Kentucky's LLC it's a charitable donation of $10k on their personal taxes - if they get some seating rights, it becomes deductible to the amount left after the value they got back (they would be told). This is only because the LLC would fall under the public university structure. 2. More likely if one wanted to entice more donors, they form a non-profit for the donors and have the LLC administer the payouts from the donations to members who could be players while staff are salaried workers. A player could get 1%, 2%, etc of the LLC and still not be considered an employee which fits the NCAA model for non-employee student athletes. 3. the LLC would also likely maintain the ties to the NIL collectives as donors to the non-profit might want donations directed to NIL vs. athletic facilities vs generalized donations. [/QUOTE]

Verification: First name of men's bb coach

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