I wanted to do a two part series on the easy mistakes students athletes tend to make and what to look out for. This is part 2!
Mistake #6: Choosing the Wrong Business Structure – LLCs aren’t magic. S‑Corps aren’t for everyone. Sole proprietorships offer zero protection. Your structure should match your income, your goals, and your state. Ask questions before you file anything.
Mistake #7: Assuming Their Agent Knows the Rules – Anyone can call themselves an NIL agent. Not everyone understands NCAA rules, state law, taxes, or contract risk. Your agent should protect your eligibility, not jeopardize it.
Mistake #8: Forgetting About State and Local Taxes – Earn income in multiple states? You may owe taxes in multiple states. Residency matters. Location matters. Athletes need to understand where they owe not just what they owe.
Mistake #9: Overlooking the Impact on Financial Aid and Family Taxes – NIL income can change dependency status. It can affect FAFSA.
It can impact your parents’ tax credits. NIL doesn’t just affect you, it affects your household.
Mistake #10: Not Treating NIL Like a Long‑Term Brand – NIL isn’t just about deals. It’s about identity, reputation, and leverage. Athletes who build a brand now will have opportunities long after the last whistle. Think of NIL as a business, the business of YOU!
