We are a Limited Liability Company (LLC) to limit each Partner's liability to the amount invested. You will be actually investing in membership units of the whole company.
The initial capital contribution covers the Partner's interest in the acquisition expenses, entity costs and equine mortality insurance. The initial contribution does not cover expenses incurred in the racing horses. (see racing expenses).
Each investor is responsible for his or her ownership pro rata share of expenses typically on a quarterly basis. A typical capital call is usually $200-300 per 1% of investment. If the horses are earning purse money then quarterly capital expenses could be waived.
Trainer $90-100 per day
Veterinarian $1000 per month
Blacksmith $200 per month
Transportation to other tracks $400 a year
Mortality Insurance- annual premium bases on 4-5% of horses acquisition
Ongoing business cost $100-200 a month.
Capital calls will be made the quarter before. Again if purse money is accumulating then there will be no
need for additional Capital at certain quarters.
Pony to Post
State and Local Taxes
Nomination fee (if required)
(Percentages and takeouts of industry are standard race expenses)
Distributions will be made to the partnership's members when money in the account significantly exceeds the upcoming quarter's projected maintenance expenses, typically if a large purse is won and after projecting the next quarter's expenses.
Sale of a horse at a reasonable markup to the LLC
Percentage of purse earnings
Shares in a syndication of a stallion