Humes Racing

HUMES RACING PARTNERSHIPS

Consider a Partnership
Spreading the risk of Thoroughbred ownership over several owners, and (when possible) several horses is the strength of the partnership concept. Many owners would like to play at the top level of the industry, but find the resources required to play at that level to be very demanding, and with increased risk. Many first-time owners elect to become involved in partnerships for the proportioned initial investment and the reduced recurring expenses.

Partnerships are formed for all types of investments, and Humes Racing, LLC offers partnerships for broodmares and pinhooking.

When shopping available partnerships, look for the following features: the ability for an owner to spread the risk over several horses, a reduction or elimination of monthly management fees, and a capital investment in mid- to high-quality stock.

The limited liability company (LLC) is rapidly replacing the general partnership. The popularity of the LLC is derived from a combination of several desirable features:

The LLC is treated as a partnership for federal and state tax purposes.
The owner's personal assets are shielded from the LLC's liabilities and obligations.
The LLC affords its organizers substantial flexibility in structuring the management and profit-sharing.

If the organizational documents of the LLC are properly drafted, it will be treated as a partnership for federal and state tax purposes. The flow-through tax treatment of the partnership ensures that there will be only one level of tax (at the partner level) on the LLC's income. If the LLC's activities generate losses, they can be passed through to the owner and utilized on their individual returns. This tax treatment avoids double taxation of income distributed to the business' owners, or taxation at both the corporate and shareholder levels.

Next to partnership tax treatment, the protection the LLC affords its members from personal liability is the LLC's most attractive feature. Members in an LLC have the same protection against the liabilities of the LLC as shareholders have against liabilities of their corporation.

Claiming Partnership Login Page

Partnership Request Form

Cost of Training a Thoroughbred

Pinhooking Partnership

Dosage Past and Present

Horse Tax Law

Sales Integrity Program

Understanding Thoroughbred Terms (Glossary)

Humes Racing, LLC
Telephone: 202.271.1009
Farm: 580.868.2348
Email: ghumes@humesracing.com

This Web site has been created by Humes Racing, LLC for the convenience of its Internet visitors. It is provided solely for information and background purposes. This Web site and information are not an offer to sell or a solicitation of an offer to buy any security or investment interest.