Below are checklists to help you create your NIL to prepare you for future partnerships. If you have any questions, please do not hesitate to reach out to me for assistance.

NIL Checklist

1. RESIDENCY

Determine which state you will be filing your taxes as a resident of.

a. Run a state income tax analysis to determine the difference between to potential state options (example: home state and school state).

b. See Residency Checklist to follow proper steps to avoid audit issues

2. BUSINESS

a. Establish your LLC (if applicable)

b. EIN establishment

c. Business email account

3. BANKING

a. Personal checking account & credit card

b. Business checking account & credit card

i. Any NIL related expenses should be paid for from business accounts

4. TAXES

NIL income will potentially be exposed to Federal tax, Self-Employment tax, to state income tax where you earn the income, as well as your resident state income tax (if different, a different state).

a. Run a tax projection to determine tax liability

i. May need to pay Quarterly Estimated Taxes

ii. Set aside money to pay full tax liability so it does not get spent.

b. Track NIL related expenses to lower taxable income

i. Travel for NIL services, agent fees, etc.

5. INVESTMENT ACCOUNT PLANNING

a. Consider a Roth IRA contribution if under the income limit

b. Consider an Individual 401k contribution to potentially defer taxes

c. Taxable brokerage account

6. INSURANCE

a. Auto/Renter’s/Umbrella

b. Disability

NIL RESOURCES

ATHLETE RESIDENCY CHECKLIST

In the first two years, keep a detailed accounting of where you are each day of the year. This will assist you if you get a state residency audit.

Trying to remember where you were on a certain day 2-4 years later is very difficult. Having it already prepared also shows your preparation for an audit.

1. Proof or Residence for the address you will live at.

a. We recommend having the following documentation (if applicable)

i. Rental or lease agreement

ii. Home Purchase closing statement

iii. Utility Bills in your name

iv. Renter’s/Homeowner’s Insurance

v. Bank Statements with your new address

2. Driver’s License with your new address.

3. Auto Registration (If Parent is on Title, not necessary)

4. Establish LLC in resident state (If Applicable)

5. Update current bank accounts to the new resident address.

6. Contracts and 1099s for Endorsements, Tournament winnings, or NIL deals issued with resident address.

7. Keep copies of credit card, bank and debit card statements.

RESIDENCY RESOURCES