FOR PROFESSIONAL ATHLETES
His LLC existed on paper. Six payers still sent checks to his Social Security number.
I've reviewed dozens of athlete LLCs that were formed correctly and then completely ignored by the payers writing the checks. This is the story of the paperwork gap that cost one practice-squad player $6,200, and the two documents that fixed it before the next season of camp checks went out.
Book Free ReviewPhoenix · September 7, 2026 · 6 min read
The numbers behind the mismatch
$600
minimum payment that triggers a 1099-NEC
“I thought forming the LLC was the hard part. The hard part was making sure every check actually followed it.”
Marcus T. · NFL practice squad, entering third season
The Story
Marcus formed his LLC in March, the month his agent told him every serious athlete needs a business, not just a name. By August he had six figures moving through appearance fees, a shoe deal, and two hometown camp checks. Not one of those payers ever saw his LLC's paperwork. When the 1099-NECs landed in January, four of six had his personal Social Security number on them instead of his company's EIN.
The Problem
Here's the part nobody explains: an LLC doesn't automatically change whose name shows up on a 1099. The payer only knows what's on the W-9 you gave them, and if that W-9 still lists your personal SSN, the income reports to you, not your company, no matter what your operating agreement says. Marcus's agent filed the LLC formation paperwork and stopped there. Nobody updated the sponsor contracts, the camp checks, or the shoe deal's accounting department.
$6,200
extra self-employment tax exposure from misrouted 1099s
Amadae client reviews, 2025
What We Tried
First we asked the shoe brand to reissue the 1099 under the LLC. Their accounting team said they'd note it for next year and never did. Then Marcus's agent suggested he just report everything on Schedule C under his own name and let the LLC exist for liability only. That plan works for lawsuits. It does nothing for self-employment tax.
What we tried before the real fix
Sound familiar? A 30-minute call tells you exactly where you stand.
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The Discovery
The fix wasn't a new entity. It was two documents: a corrected W-9 listing the LLC's EIN with the right tax classification checked, and an S-corp election filed on Form 2553 so future income would stop taking full self-employment tax on every dollar. Once the LLC elected S-corp status, Marcus paid himself a reasonable salary through payroll and let the rest flow as a distribution, which isn't hit by the 15.3% self-employment tax the same way sole proprietor income is.
Source: IRS Form 2553, Election by a Small Business Corporation
SE tax before and after the election
Illustrative, $86K net income, $40K reasonable salary
The FixAMADAE
This is where Amadae comes in: we don't just file your return, we track every payer, correct every W-9 before the check clears, and run the S-corp election and payroll so the right entity gets the right 1099 from day one. For an athlete cycling through agents, camps, and sponsors every season, that means one team watching the paperwork instead of six accounting departments guessing.
Who's actually watching your W-9s
| DIY LLC | Team's accountant | Amadae | |
|---|---|---|---|
| Corrects W-9s before payment | |||
| Manages the S-corp election | Extra fee | ||
| Tracks 1099s across every payer | |||
| Runs quarterly payroll |
The Proof
By the following September, every payer had the LLC's EIN on file and the S-corp election was active. The 1099s that came in that January all matched the company, not his Social Security number, and his quarterly estimates finally matched what he actually owed.
“I thought forming the LLC was the hard part. The hard part was making sure every check actually followed it.”
Marcus T.
NFL practice squad, entering third season
Corrected 6 payer W-9s, recovered $6,100 in tax exposure
Why NowAMADAE
Training camp cuts, trades, and new endorsement checks all land in the same six weeks that quarterly estimated taxes are due. Every payer you sign with this month decides whose name goes on next January's 1099, and the next deadline doesn't wait for your roster to settle. Book a free intro call and we'll review every current payer's W-9 before your next check clears, no contract required.
Source: IRS: Estimated Taxes
$600
minimum payment that triggers a 1099-NEC
15.3%
self-employment tax rate on net earnings
$6,200
extra tax Amadae found from misrouted 1099s
Sept 15
next quarterly estimated tax deadline
IRS Form 1099-NEC instructions, IRS Self-Employment Tax, IRS Estimated Taxes, and Amadae client reviews, 2025.
Books, payroll, and taxes for athletes managing income across every payer
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Plans from
$249/mo
If you make $40K - $69K. Flat, no hourly bills.
Straight answers
Generally no. Once your LLC has an active S-corp election on file and payers have your correct, updated W-9, most nonemployee compensation payments are exempt from 1099-NEC reporting, with narrow exceptions like attorney payments. The exemption only works if the payer actually has the corrected paperwork.
The income reports on your personal return as if the LLC didn't exist for that payment, which can mean paying full self-employment tax on income an S-corp election could have partially shielded. The fix is a corrected W-9 filed with that payer going forward, not an amended 1099 in most cases.
Yes. Formation paperwork only changes your legal structure. Every existing payer, from your agent's agency to a camp organizer, needs an updated Form W-9 with your LLC's name, EIN, and correct tax classification before their next payment.
No. Correcting a W-9 is routine paperwork payers handle constantly, and it actually reduces mismatch risk between what a payer reports and what you file. The bigger audit risk is leaving mismatched 1099s unexplained on your return.
Marcus's LLC was correctly formed the entire time. It just wasn't doing anything, because nobody updated the paperwork behind it. Before your next endorsement check or camp payment clears this season, get every W-9 and entity election checked by someone who tracks it for a living.
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