| Are you considering becoming involved in a horse | | | | - Define your expectations for insuring your investment, |
| racing partnership or syndicate, or are you already an | | | | (i.e. liability and mortality insurance). |
| active partner? If so, it is crucial to know how to get | | | | - Determine whether the contract includes a "get out" |
| started properly in order to keep track of your | | | | clause. What happens if you change your mind? |
| partnership share and be prepared when you have to | | | | In addition to a business plan, you need to know how |
| give an account of your records for yearly tax | | | | to set up your business properly and how to account |
| preparation or other purposes. | | | | for income and expense. Some things you need to do |
| If you expect the IRS to view your horse racing | | | | in order to get your business set up properly include: |
| venture as a business, you will need to be systematic | | | | - Find an accountant with verifiable experience in horse |
| and professional in your approach. To set off on the | | | | racing partnerships. |
| right foot, in advance of investing in a partnership, you | | | | - Establish a separate checking account for your |
| need to establish positively just what you want to | | | | share of the horse racing partnership and label it as |
| achieve as well as what the syndicate is offering. A | | | | such for example, John Smith d/b/a Partnership Name, |
| business plan should list precisely what you are hoping | | | | LLC. |
| for in a partnership and what you anticipate happening | | | | - Retain every invoice you receive, receipt of winnings, |
| with your investment. A few important items you | | | | check stub you write that apply to your horse racing |
| should list in your horse racing business plan are: | | | | partnership enterprise. |
| - Where you plan to obtain the funds necessary to | | | | - Establish an engagement book and travel log and |
| make both the initial investment in a horse racing | | | | carefully record all mileage to and from the track, |
| partnership and to cover the monthly expenditures. | | | | phone calls, appointments, etc. |
| - A best estimate that the partnership's length, the | | | | With proper planning, you can get started in the sport |
| duration of the contract - 1 year, 2 years, etc. | | | | of horse racing with defined expectations and |
| - Manner in which the partnership horse will be | | | | organization, which will help you choose a horse racing |
| purchased: by auction, out of a claiming race, or by | | | | partnership more quickly. You will also be prepared to |
| private purchase. | | | | keep track of your equine activities in a businesslike |
| - A budget projecting both potential income and | | | | manner, which will prepare you for tax time. Being |
| expenses. | | | | prepared prevents worries or problems, which will |
| - Spell out the limits whereby the partnership will work, | | | | allow you to really kick back and enjoy your |
| for instance, do you hope to race nationally or would | | | | thoroughbred ownership! |
| you prefer to remain local. | | | | |