NewGlfr
New member
This was considered off topic in another thread so I figured I would bring it here to get some feedback and so as to not cloud the thread where it came up with this.
It was my contention that Pro Athletes don't get paid as "independent contractors" but that they start their own Corporations to manage how they get paid and to manage their sponsorships. This could potentially result in tax sheltering some of their earnings and also help others as well. The example I gave was if Jordan Spieth started a company, we'll call it "JS Incorporated", he could then put all of his earnings (winnings, money from sponsorships, money from appearances, etc) into this Corporation which would then give him a "salary" and also have this money for other things. Other things being, if his families are on the Board of Directors of this company or also be employees then can benefit from a travel expense account, vehicles through the company and other perks.
Someone mentioned that this could be "bad advice" tax wise, so I'm very interested in people's opinions of this.
Just FYI this was brought up in the Paige Spiranac thread and I would assume that as savvy as she is, the money she earns from her social media endeavors and now her PXG sponsorship will also be filtered through a company she owns.
Any thoughts? Any Accountants or people with expertise in this regard have any feedback? I'm very curious as I have experience with this in the Professional World, but not Athletics.
It was my contention that Pro Athletes don't get paid as "independent contractors" but that they start their own Corporations to manage how they get paid and to manage their sponsorships. This could potentially result in tax sheltering some of their earnings and also help others as well. The example I gave was if Jordan Spieth started a company, we'll call it "JS Incorporated", he could then put all of his earnings (winnings, money from sponsorships, money from appearances, etc) into this Corporation which would then give him a "salary" and also have this money for other things. Other things being, if his families are on the Board of Directors of this company or also be employees then can benefit from a travel expense account, vehicles through the company and other perks.
Someone mentioned that this could be "bad advice" tax wise, so I'm very interested in people's opinions of this.
Just FYI this was brought up in the Paige Spiranac thread and I would assume that as savvy as she is, the money she earns from her social media endeavors and now her PXG sponsorship will also be filtered through a company she owns.
Any thoughts? Any Accountants or people with expertise in this regard have any feedback? I'm very curious as I have experience with this in the Professional World, but not Athletics.
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