Page 19 - February 3 2019

C-CORPORATIONS
Most incorporated businesses are C corpo- rations. C corporations are not subject to the same qualification rules as S corporations and thus typically offer more flexibility in terms of stock ownership and structure. These entities can typically deduct most reasonable employee benefit costs, while an S corporation may not.
LIMITED LIABILITY COMPANY
This is one of the more common entity structures for horse racing partnerships as
it provides limitation on liability for own-
ers, so if the partnership is sued or a member declares bankruptcy, the personal assets of the
The 2012 Grade 2
members will be protected. LLC’s are generally much more flexible in set-up, structure and governance than a corporation. LLC’s provide pass-through tax treatment and each partner receives a K-1 per their pro-rata involvement in the company.
CHOOSING THE BEST FORM OF OWNERSHIP
Even after you have established your business as a particular entity, you may need to re-evaluate your choice of entity as the business evolves. An experienced attorney and tax advisor can help you decide which form of ownership is best for your business. Keeping
good records is another crucial item for the business owner in order to satisfy IRS auditing requirements and we’ll discuss that in detail next month.
DISCLAIMER: The above information and content are general in nature for informational purposes only and do not constitute finan-
cial advice or investment recommendations. Speedhorse Magazine makes no endorsements and bears no liability for your use of the informa- tion provided in this column. Always consult a suitably qualified financial professional and/or tax professional on any specific problem, issue or investment opportunity.
$200,000 added
Gold & Silver Cup Futurity!
Last Year’s Purse was $383,000!
The 2012 Grade 3
$50,000 added
Gold & Silver Cup Derby!
Last Year’s Purse was $100,500! To be Run at
Fair Meadows in Tulsa, Oklahoma
TRIALS – JULY 21ST FINALS – AUGUST 4TH
Call Now! (405) 288-2145
See Nomination Form & Instructions
SPEEDHORSE, February 3, 2012 17