Does your kid need an LLC, an EIN, or a W-9 for NIL?
The first real brand deal usually comes with paperwork: a W-9 request, and sometimes a "you should set up an LLC" from someone who would like to sell you one. Here is what the IRS itself says.
The W-9: normal, but guard it
A brand that pays your athlete as a contractor will usually ask for IRS Form W-9, "Request for Taxpayer Identification Number and Certification." For an individual, the number it asks for is "generally your social security number."
Skipping it can cost you. The W-9 explains that a payer "must under certain conditions withhold and pay to the IRS 24%" of payments, including "nonemployee pay," and one of those conditions is "You do not furnish your TIN to the requester."
The EIN: optional, free, and never worth paying for
An EIN is a federal business number. The W-9 says: "If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN." So an EIN gives your family a number to put on brand paperwork in place of your child's SSN.
The IRS issues it online "in minutes for free," and warns: "You never have to pay a fee for an EIN." Apply only at irs.gov. A website charging for one is a red flag.
The LLC: not needed for taxes
An LLC is "an entity created by state statute." For federal income tax, the IRS treats a one-owner LLC as "disregarded" unless it elects otherwise, which means "the LLC's activities should be reflected on its owner's federal tax return," generally on Schedule C. That is the same Schedule C your athlete already files without an LLC.
It does not hide the SSN either. On a W-9, a one-owner LLC enters "the owner's SSN (or EIN, if the owner has one)."
So for federal taxes, an LLC by itself does not change what your athlete owes. What an LLC does under state law is a question for a Florida Bar attorney, not a tax shortcut.
The 60-second version
- W-9: expect it, and fill it out only for a brand you have verified.
- EIN: optional, free from the IRS, and lets you skip the SSN on brand forms.
- LLC: not needed for taxes. Anyone pushing one as a tax trick is selling something.
- Paying a fee for any of this? Stop.
Sources
- IRS Form W-9 (Rev. March 2024), with instructions
- IRS: Get an employer identification number
- IRS: Single member limited liability companies
- IRS: Name, image and likeness income
NIL for Kids is an independent educational resource. General information, not tax or legal advice. Verify at irs.gov and with a qualified CPA or attorney. Last reviewed October 16, 2026.