Why does Kelly get paid for coaching football to an LLC? Is this to pay less taxes?

Do you even Rosy Finch Boyz

Lol yes.

Tax reasons. It also allows them to put more toward their retirement. Basically it gives them more freedom with their money.

Most coaches do this. As mentioned already O’s LLC was called The Rosy Finch Boys.

So he can write off breathing oxygen, same reason everyone else does it to pay less taxes. It’s smart

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O is his CPA

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just another one of Ed's dream jobs, to be a CPA

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It is a personal services company, coalled a loan out. They are common for coaches, pro athletes and entertainers. The loan out receives the income, and passes it through to the individual. It won't lessen the tax burden, but it does make it easier to claim expenses as it makes short term employment more like an independent contractor relationship.

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How do healthcare and other benefits work. Does Kelly get these benefits through LSU or his LLC?

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It won't lessen the tax burden, but it does make it easier to claim expenses as it makes short term employment more like an independent contractor relationship.

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Actually taxes are a big reason for this in particular. It can very much lessen the taxes. Especially if it is S-corped and pays the employee a salary.

While I'm speculating at some of this, I believe that is where the "base" salary comes into play that is paid by LSU to the coach. They probably take the benefits available and paid on behalf of all state public employees out of that check and the bulk of the rest of his salary goes to the LLC.

A few really intelligent reasons for this:

1) Liability protection as is in the name. More difficult to garnish an LLC than Brian Kelly if he gets in a car wreck or some bozo cracks their head in his pool.

2) Retirement savings- he can start a Solo 401k and max out both his employee deferral and "employer match". $66K total tax deferred savings for 2023. He could potentially also start a cash balance defined benefit plan and really sock away a shite pile of money tax deferred.

3) Despite most of his funds getting paid to the LLC, it's entirely possible he's personally an employee of LSU which would afford him access to healthcare. If not, guy makes enough money he's probably not sweating a few grand a month in premiums.

4) Business expenses babyyyyy. He's writing off gobs of "expenses" against his income to lower his overall tax bill. If he talks football over drinks, the martinis are being expensed. It's a write off, Jerry!