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Message: [QUOTE="Lafayette, post: 5268438, member: 14008"] LLCs make sense since they are member or owner based (typically member). Members receive a K-1 which would be like a W-2 for an employee, but this if they are 'limited partners' is not subject to payroll taxes for student athletes. It's not a payment since the LLC is not employing them, but would employ coaches, admin, staff. But then the LLC is free to bring in donations is comical since they would be taxable to the LLC. More likely they have a non profit getting the donations and have the LLC as a conduit out as the operating company to make the whole 'scheme' tax-free donations and players getting cash but not as an employee. [/QUOTE]