How do contracts play a role in my equine business? Contracts are written agreements between two or more parties that are enforceable by law. Whether you are boarding a horse for a friend, standing your stallion for breeding, or sending your horse to a trainer, contracts can be instrumental in any equine business agreement.
What Is a Contract?
A contract is:
- An agreement between two or more parties for the doing or not doing of something specified
- An agreement enforceable
One major decision for operating a horse business is determining which legal business organization to use. The one that fits your situation depends on liability, control, number of owners, and tax purposes. You may even find that you want to use several forms of business organization for your horse operation – for example, one for a business and another for ownership of land.
The major types of business ownerships are:
1. Sole Proprietorship
- This is the most common form of
Why a Business Plan?
- Provides your business with a road map.
- It is important to know what has happened in the past, what your current situation is, and what your plans are for your business.
- It allows for you to realistically assess anticipated income and expenses before the business is launched, ultimately reducing your financial risk in the long term.
- It will help in an IRS audit to determine if you are a “hobby or a business.”
Business Plan Components …