After years of dreaming about owning a racehorse, you decide to plunge headlong into the industry by becoming part of a horseracing partnership. The problem is you do not know a good opportunity from a possibly not so good one. Before you throw caution to the wind, take a moment to educate yourself about racing partnerships and explore all available options to ensure you choose the partnership that best suits your needs.
Here is what you should be considering when thinking about investing in a horseracing partnership:
* Is this investment something you can really afford? Do understand the costs involved in ownership? Are you in a financial position that will allow the initial share purchase as well as the quarterly or monthly fees for ownership? These fees are often paid in advance.
* What type of business structure do you prefer and which one will offer you the most protection? How does the business structure affect you from a tax and liability standpoint? What documentation will you receive for tax purposes?
* How is the record of the team that manages the horseracing partnership? Are the staff accommodating and helpful when you need them? Can you ask questions of the managing partner?
* How will the management team account for income and expenses? Will you get periodic updates? Will you have access to view records? How often are purse winnings paid out?
* How does the partnership acquire their horses? Do the share prices of the partnership closely reflect the horse's purchase price?
* Do you know who you are going into business with? Are references from other partners available for your review?
* How are decisions affecting the racing partnership made? Does the managing partner make the decisions? Do all the partners vote? Are there periodic meetings for the partners to discuss issues and get progress reports?
* How often will you be in contact with your horse?
* What benefits are available to you by joining a particular horseracing partnership?
* Can you transfer your shares and leave the partnership? What will happen when the horse retires?
There are many factors to consider prior to joining a horseracing partnership. If you feel overwhelmed or unsure, it is best to consult the services of an advisor, attorney, accountant, or a combination thereof for assistance. You may also consider seeking advice from experienced owners, most of whom will talk openly to you regarding the industry if they feel you are serious about becoming an owner.
Here is what you should be considering when thinking about investing in a horseracing partnership:
* Is this investment something you can really afford? Do understand the costs involved in ownership? Are you in a financial position that will allow the initial share purchase as well as the quarterly or monthly fees for ownership? These fees are often paid in advance.
* What type of business structure do you prefer and which one will offer you the most protection? How does the business structure affect you from a tax and liability standpoint? What documentation will you receive for tax purposes?
* How is the record of the team that manages the horseracing partnership? Are the staff accommodating and helpful when you need them? Can you ask questions of the managing partner?
* How will the management team account for income and expenses? Will you get periodic updates? Will you have access to view records? How often are purse winnings paid out?
* How does the partnership acquire their horses? Do the share prices of the partnership closely reflect the horse's purchase price?
* Do you know who you are going into business with? Are references from other partners available for your review?
* How are decisions affecting the racing partnership made? Does the managing partner make the decisions? Do all the partners vote? Are there periodic meetings for the partners to discuss issues and get progress reports?
* How often will you be in contact with your horse?
* What benefits are available to you by joining a particular horseracing partnership?
* Can you transfer your shares and leave the partnership? What will happen when the horse retires?
There are many factors to consider prior to joining a horseracing partnership. If you feel overwhelmed or unsure, it is best to consult the services of an advisor, attorney, accountant, or a combination thereof for assistance. You may also consider seeking advice from experienced owners, most of whom will talk openly to you regarding the industry if they feel you are serious about becoming an owner.
About the Author:
C. Anne Baker's life has included thoroughbred horse racing and bloodstock for countless years. She also contributes to horse racing charities. For a limited period, visitors to her website PartnersInThoroughbreds.com can receive her notable guide Becoming included A Horse Racing Partnership
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