Ok, I have finally worked a deal with a colleage to arrange for a rather substantial sponsorship that would easily cover my shortened season and a trip to nationals. That being said I have a couple questions on how I should go about handling the money so I don't get hit with it as income.

The general plan is to start a race team with a dba and ideally would be owned by myself but that can't happen till after my divorce is final for obvious reasons. Business may be in my father's name for now. However, the question I have is how does the small business report the money? Do I only pay taxes on the portion not spent (net income) after expenses?

I can probably resolve most of this with our corporate tax attorney but wanted to see what you guys may have done in the past if the road has already been paved to a best plan.

Thanks!