ANSC 485 Lecture 3: ANSC 485 Lecture 3
Document Summary
Lecture 3: horses are officially considered livestock. Contemplate the nature of involvement: create a plan, create a budget, hobby. Many decisions to make: horse, care, discipline and tack, nature of participation, facility or at home, future options. There are 5 major types of business entities. Sole proprietorship: most common and simplest, absolute control, sole liability. Partnership: two or more persons engaging in business, each contributes resources and has some control, distributed liability. Limited liability company: newest and trending, all owners are called members, same control as partnership, state and federal taxes. C-corporation: directors, officers, shareholders, most complex, most costly, most regulated, corporate taxation, most limited liability to shareholders, not often seen in equine industry. S-corporation: variant of corporation, shareholders: limited liability, can be employees, director, officers, tax implications, no corporate tax, profit motive or for profit. Must prove profit for three out of five years in operation, or two out of seven years for breeding, showing, training or racing.
