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:
* 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.
* Which business structure type will you need and which will give you the best protection? How will the partnership's business structure have an effect on your liability and tax issues? What documents will you be receiving when it's tax time?
* 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?
* What type of accounting is there for the expenses and income that the management team overseas? Will the partners get updates? Can partners view the records? When are the winnings paid to the partners?
* Where will the partnership get the horses? Does the price of the shares reflect closely on the purchase price of the horse?
* How much do you know about your future business partners? Can you review references from those who have already joined?
* How does the racing partnership make its decisions? Are they all made by the managing partner? Is there a vote among the partners? Will there be meetings periodically to allow the partners to talk about issues and to hear about progress?
* How much contact will you have 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 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. - 16887
Things you should consider about a horseracing partnership and questions you should ask include:
* 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.
* Which business structure type will you need and which will give you the best protection? How will the partnership's business structure have an effect on your liability and tax issues? What documents will you be receiving when it's tax time?
* 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?
* What type of accounting is there for the expenses and income that the management team overseas? Will the partners get updates? Can partners view the records? When are the winnings paid to the partners?
* Where will the partnership get the horses? Does the price of the shares reflect closely on the purchase price of the horse?
* How much do you know about your future business partners? Can you review references from those who have already joined?
* How does the racing partnership make its decisions? Are they all made by the managing partner? Is there a vote among the partners? Will there be meetings periodically to allow the partners to talk about issues and to hear about progress?
* How much contact will you have 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 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. - 16887
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 short period, visitors to her website PartnersInThoroughbreds.com can download her excellent guide Becoming included A Horse Racing Partnership
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