Business Structuring

Many athletes invest in other businesses as a means to supplement their income, provide employment and opportunities for friends, and ensure an income stream after their retirement.  As with any business, a proper business structure is critical in maximizing asset protection as well as minimizing state and federal taxes.  However, because these businesses are secondary to the athlete’s playing career, the business may not be structured effectively.  As a result, the athlete is risking business or personal assets and incurring unnecessary taxes.  ETA’s professionals have extensive experience in mergers and other tax-free reorganizations, designing multi-entity structures, as well as corporate and limited liability company formation.

To assist professional athletes in selecting the best legal entity to conduct their business ventures, many factors should be considered in concert.   ETA’s tax professionals examine and analyze these factors when determining the optimal structure to protect personal assets, protect business assets, and provide the most federal and state tax opportunity:

• Current ownership of the business(es)
• Future ownership plans of the ownership
• Laws pertaining to Federal Income Tax
• Federal employment/payroll tax
• State taxes
• Industry
• Assets held within the business
• States in which business operates
• Duration of business operations
• Current business structure