what about if he wins Gold?
what about if he wins Gold?
You do know that Eaton already holds the WR for the indoor Heptathlon right? Actually he has set the indoor WR THREE times already.
Bubka raised the world record 1cm at a time to get the meet bonuses. Who knows if he got a contract bonus for each WR. It was the meet organizers who were paying those bonuses.
I'm assuming there is prize money for the US champs/OT. Are there also meet bonuses for AR/WR? Does the Deca qualify for the Visa championship series? If so, he could be in the running for that. Although I think that is over several meets so he'd have to have entered the long jump at Pre or something to accumulate enough points.
This says that Eaton is currently in the lead for the Visa championship series although Gatlin should unfortunately pass him with the wind-legal 9.80.
Is 9.80 really better than a WR in the Deca? That doesn't seem fair.
The hick up is that the IRS can rule that your salary is wrong and charge you the tax anyway if they decide a WC 800m guy should be making 60k instead of 35k. The other kicker is depending on the state you will have to pay other taxes. Most states have franchise taxes (CA is something like 800) or asset taxes of some type and you have to pay a bit of money to maintain the LLC.You probably still save money but it isn't a no brainer.And besides you will get that SS money back when you retire in the terms of a higher benefit. Ok I am not sure who would believe that:)
wallfly wrote:
It depends:
The IRS does not recognize an LLC as a classification for federal tax purposes. An LLC business entity must file a corporation, partnership or sole proprietorship tax return.
An LLC that is not automatically classified as a corporation can file Form 8832 to elect their business entity classification. A business entity with a single member can choose to be classified as either an association taxable as a corporation or disregarded as an entity separate from its owner, a “disregarded entity.”
After you have filed the 8832, if you want your LLC taxed as S corp, you file a 2553.
If you chose to have the LLC taxed as an S corp, the tax advantages of LLC take on those of an S corp.
LLC tax advantages extend to the ability, under the S corp, to pay yourself a “reasonable wage” and then take the rest of the “profit” as a distribution. The LLC self employment tax applies to the portion taken as a wage, but the distribution is not subject to the LLC self employment tax. You’ll save about 5-7% in tax on the amounts you take as the distribution.
Overall, LLC taxes are simply the tax structure you chose. If you do nothing when you set up your LLC, you’ll be taxed as a sole proprietorship, if you are the sole owner.
Example:
Nick is a sole proprietor bringing in sales of $90,000. After he pays his costs and expenses, his profit is $60,000. As a sole proprietor, he is required to pay self- employment tax of 15.3% on this entire $60K of profit, which equates to $9,180.
Now, let’s assume Nick chose for the LLC to be taxed as S corp, and chooses to pay himself $35K for the year in salary, and take the remaining $25K of profit through a distribution. He still earns the same $60K in profit. But, because corporations only pay Social Security & Medicare taxes on salaries, he’s only liable for $5,355, saving over $3,800 in taxes.
Adam Eaton wrote:
Tghpdx wrote:NBA minimum $480k rookie
MLB minimum $480k rookie
NFL minimum $430k rookie
World record. Decathlon a bonus of 750k
Going to the Olympics...priceless.
Great timing on that response as well. And I will add:
"Claiming the title of World's Greatest (All-Around) Athlete of ALL TIME"
...Priceless
Nick Punto earned $750,000 last year. That was a decrease in salary from $4,000,000 the previous year.
I know your question. Who is Nick Punto? That's my point exactly.
Adam Eaton wrote:
Tghpdx wrote:NBA minimum $480k rookie
MLB minimum $480k rookie
NFL minimum $430k rookie
World record. Decathlon a bonus of 750k
Going to the Olympics...priceless.
So NBA players have the potential to be the real winners?
the rocket. wrote:
Adam Eaton wrote:Going to the Olympics...priceless.
Great timing on that response as well. And I will add:
"Claiming the title of World's Greatest (All-Around) Athlete of ALL TIME"
...Priceless
Come on now, lets be realistic...to us track nuts Eaton is a God - however, to the society-at-large going to the Olympics or setting a world record in the decathlon pales in comparison to being a professional NBA, MLB or NFL player - ask most folks who the greatest athlete is they'll point to these sports - most probably don't even know what the decathlon is - Eaton gets 750K for a performance never done before be anyone while these other guys make millions per year for status quo performances...after the hype of the Olympics is over, the Olympian is mostly forgotten...
I'd like to see Eaton try the Double Deca.
Well played sir, well played.
korviev wrote:
Nick Punto earned $750,000 last year. That was a decrease in salary from $4,000,000 the previous year.
I know your question. Who is Nick Punto? That's my point exactly.
Stating the obvious wrote:
Well played sir, well played.
korviev wrote:Nick Punto earned $750,000 last year. That was a decrease in salary from $4,000,000 the previous year.
I know your question. Who is Nick Punto? That's my point exactly.
So if his bonus is $750K from Nike on this, what is his salary? And what could he earn at the olympics for gold and or new record. I'd be surprised if he was limited to one bonus. My distance friends who were nike athletes could get separate bonuses for making olympic/world teams as well as hitting certain times (such as sub 27:30 or 13:10) as well as if they won the u.s. champs / olympic trials. Granted theire bonuses were much smaller than $750K.
Imagine if he got bonuses for each invidual event WR plus the total Deca WR, plus making the team, plus winning the trials, plus PR's, plus salary.
That would be one damn big year and that's just from one event plus salary.
categorically wrote:
Bubka raised the world record 1cm at a time to get the meet bonuses. Who knows if he got a contract bonus for each WR. It was the meet organizers who were paying those bonuses.
I read somewhere that Bubka also got about $30,000 in bonus from the Ukrainian Government every time he broke the world record. But yes, the meet bonuses were the main reason.
mathmatics wrote:
Stating the obvious wrote:Well played sir, well played.
So if his bonus is $750K from Nike on this, what is his salary? And what could he earn at the olympics for gold and or new record. I'd be surprised if he was limited to one bonus. My distance friends who were nike athletes could get separate bonuses for making olympic/world teams as well as hitting certain times (such as sub 27:30 or 13:10) as well as if they won the u.s. champs / olympic trials. Granted theire bonuses were much smaller than $750K.
Imagine if he got bonuses for each invidual event WR plus the total Deca WR, plus making the team, plus winning the trials, plus PR's, plus salary.
That would be one damn big year and that's just from one event plus salary.
A lot of this would depend on whether his agent felt they had to take the contract as offered from Nike; or whether his agent and attorney built in thorough schedules for bonuses.
I've heard of agents / attorneys negotiating contracts and leaving out obvious bonuses for things like an MLB player making the all star team. It happens.
So hopefully Eaton's people took a look at his future and build a great schedule of bonus reward.
And, you know, if Uncle Phil got involved to reward the local boy, the contract could be sweeter than it could have been.
wallfly wrote:
With all that said, a single member LLC (unless the USATF failed to promulgate that rule too!), cannot enter into a track competition, and therefore would not be in a position to enter into the sponsorship contract with Nike that resulted in the bonus. But it sounded good while I was writing.
But hasn't the Citizen's United ruling decided that corporations are people?
It would be an interesting legal exercise to pursue this course of action.