After spending years of thinking about becoming a racehorse owner, you make the decision to jump into the industry by joining a horseracing partnership. This can cause a problem because you don't know the good opportunities from the bad ones. Before jumping straight into this kind of investment, it's important to take time to learn about racing partnerships and to look at all the options available to make sure you choose the best partnership for your own specific needs.
Things you should consider about a horseracing partnership and questions you should ask include:
* Can you really afford to own a racehorse? Do you know how much it costs to maintain ownership? Are you financially in a position to both purchase the initial interest in a horseracing partnership as well as keep up with monthly or quarterly billing for related expenses, which by the way are typically paid in advance.
* Do have a preference when it comes to the business structure of the partnership? How will the structure of the business affect your taxes and liability? What type of documentation will you have for your taxes?
* 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 does the partnership's management team keep records of its income and how it pays its expenses? Will you get updates about these? Can you view the records associated with them? When will the management team pay out the purse winnings?
* How are the horses acquired? Does the purchase price of each horse reflect the price of each share?
* Do you know who you are going into business with? Are references from other partners available for your review?
* How will the decisions be made for the racing partnership? Will the managing partner take them all? Will the partners vote on the issues? Will the partners have meetings in order to discuss expenses and other issues and to get reports of progress?
* How much contact will you have with your horse?
* If you join a specific horse racing partnership, what benefits can they give you?
* Can you get out of the partnership? What are the procedures for transferring your shares? What happens when it is time to retire the horse?
There are so many things to think about before you join a horseracing partnership. If you are still unsure or feel confused about the prospects, you should talk to an accountant, a financial adviser, an attorney or a combination of advisers to get assistance. It may also be a good idea to talk to owners with experience in partnerships. Many experienced owners will discuss openly their experience in the industry if you have a sincere interest.
Things you should consider about a horseracing partnership and questions you should ask include:
* Can you really afford to own a racehorse? Do you know how much it costs to maintain ownership? Are you financially in a position to both purchase the initial interest in a horseracing partnership as well as keep up with monthly or quarterly billing for related expenses, which by the way are typically paid in advance.
* Do have a preference when it comes to the business structure of the partnership? How will the structure of the business affect your taxes and liability? What type of documentation will you have for your taxes?
* 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 does the partnership's management team keep records of its income and how it pays its expenses? Will you get updates about these? Can you view the records associated with them? When will the management team pay out the purse winnings?
* How are the horses acquired? Does the purchase price of each horse reflect the price of each share?
* Do you know who you are going into business with? Are references from other partners available for your review?
* How will the decisions be made for the racing partnership? Will the managing partner take them all? Will the partners vote on the issues? Will the partners have meetings in order to discuss expenses and other issues and to get reports of progress?
* How much contact will you have with your horse?
* If you join a specific horse racing partnership, what benefits can they give you?
* Can you get out of the partnership? What are the procedures for transferring your shares? What happens when it is time to retire the horse?
There are so many things to think about before you join a horseracing partnership. If you are still unsure or feel confused about the prospects, you should talk to an accountant, a financial adviser, an attorney or a combination of advisers to get assistance. It may also be a good idea to talk to owners with experience in partnerships. Many experienced owners will discuss openly their experience in the industry if you have a sincere interest.
About the Author:
C. Anne Baker's life has involved thoroughbred horse racing and breeding for countless years. She also contributes to horse racing charities. For a short period, visitors to her web site PartnersInThoroughbreds.com can receive her excellent guide Becoming Involved A Horse Racing Partnership
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