Q: Why the Limited Liability Company instead of a General or Limited Partnership or even a regular corporation?
A: A Limited Liability Company or LLC offers the maximum protection for all members in case of a lawsuit. There is no personal liability for all members with this setup and limits any lawsuit solely to the assets of the company. Our LLC will be setup in such a manner that will give our members the maximum tax benefits available.
Q: Why is the partnership investing in harness horses instead of thoroughbreds?
A: The training costs for thoroughbreds are generally considerably higher than for a harness horse. Thoroughbreds are also much more fragile making any investment in them a much riskier venture. While harness purses are less than for thoroughbreds, there are many more racing opportunities in harness racing and a harness horse can be expected to race 3-4 times a month, while a thoroughbred might race only once every 3 or 4 weeks.
Q: What other fees or expenses will there be after my initial investment?
A: Simply, NONE! Once you are a member of the Lime Spyder Racing Team all of your expenses are covered including your USTA membership fees and individual state fees and dues. The management will take care of all the administrative measures concerning proper licensing of your membership.
Q: How much will my initial investment be?
A: The minimum initial investment for a single share will be $2,500. The maximum amount of shares any individual can purchase are 10 shares ($25,000).
Q: Are there any advantages in purchasing more than one share?
A: Yes there are. First of all, for every share a person owns, they will have one vote. Many of the membership’s important financial decisions will be based on the membership vote. If a person owns 10 shares they will have 10 votes. In addition, if the membership declares a dividend to be paid at the end of the year, it will be based on a per share basis. Thus, for example, if a $500 per share dividend is declared at the end of the year, a person who owns 10 shares would receive $5,000 in dividends.
Q: In several horse racing partnerships the management receives free, upfront shares in the company. Is this the case with the Lime Spyder Racing Team?
A: Absolutely not! Members of the management team are held to the same restrictions as any other member of the team, that is they are required to purchase a minimum of one share and the maximum of 10 shares. Management will receive 5 % of any purse winnings and 5 % on the sale of any horse above the original purchase price. Thus, they will make money only when the entire membership is making money.
Q: Can a person be a partner on more than one partnership?
A: Yes they can. Once our initial partnership is formed and in operation, additional partnerships will be formed when partnership criteria’s are met.
Q: What about year-end tax reporting?
A: Management will provide each partner with Schedule K-1 forms with step-by-step explanations on how to report your profit/loss statement to provide the maximum tax benefits for each member.
Q: How are the partnerships concluded?
A: Partnerships are concluded when a 2/3 majority of the membership votes to sell any remaining horses owned by the partnership at the end of a fiscal year. After all bills are paid the remaining money left in the corporate account will be distributed to the shareholders of the partnership.
Q: Can an investor leave the partnership before it is dissolved?
A: Any member of the partnership who is interested in leaving the partnership must first offer the sale of their shares to an existing member of the partnership. After that, a member can sell their shares to an outside person upon approval of the membership by a simple majority vote.
Q: What are the normal expenses involved in racing a harness horse?
A: The actual training expense of a harness horse ranges from about $1,200 - $1,800 a month depending on where the horse is racing. The general rule is the higher the purses, the higher the monthly costs. In addition, there are vet fees which can be quite expensive, along with shoeing, shipping, board, supplies, paddock help, turnouts, etc. The driver and trainer also each receive a 5 % commission on what a horse earns. Thus, an approximate range for the total monthly cost of racing a harness horse will be between $2,000 - $4,500 a month.
Q: How are those expenses paid for by the partnership?
A: As was stated previously, we will retain about 35 % of the initial investment in the partnership to cover these costs. In addition, we constantly will be earning purse money to defray these costs and hopefully turn a nice profit. Remember, there are no out-of-pocket expenses for a member of the Lime Spyder Racing Team after their initial investment.
Q: How will the horses be purchased and who will make decisions on these purchases?
A: The majority of all harness horse purchases will come from claiming horses out of races. Private purchases might be another option, but we are interested in horses ready to race and make money. Our individual trainers and the managing partner will make all the decisions regarding which horses will be claimed or purchased.
Q: What are claimers or claiming races?
A: Horses are entered into claiming races based on their perceived value by their owners and trainers. A horse entered in a $20,000 claiming race is eligible to be claimed (bought) out of the race by a registered owner and trainer for that amount. Sometimes there are more than one claim put in on a horse in a race. If that is the case, a draw is held to see who is the successful claimant. Once the race is finished, the successful claimant is the new owner of the horse.
Q: With our horses racing at several different race tracks, how will we know when and where they are racing?
A: One of the duties of the managing partner is to keep all members informed on all of the partnership’s activities. Members will be notified via this web-site, e-mail, phone updates, etc. when and where all of the partnership’s horses are racing.
Q: Will a person be able to watch all the of the partnership’s horses races on the day they race?
A: There are numerous opportunities to always watch our horse’s race. The ultimate experience is to watch your horse race live. However, if our horses are not racing locally, virtually all of our races can be viewed at the race track or an OTB. HarnessRacingTV.com and other web-sites offer live video feeds on virtually all harness tracks in North America, while most of all of our races can be viewed in the comfort of your home either on HRTV or TVG.
Q: Are there any other perks in becoming a member of the Lime Spyder Racing Team?
A: Absolutely. All members will receive free admission to the race tracks and will be eligible for full ownership privileges. There will also be plenty of opportunities to visit our horses in the backstretch. All of your licensing concerns will also be completely taken care of by the managing partner, leaving you completely free of any concerns while enjoying the pride of belonging to a winning team and the exhilaration of entering the winning circle.
Q: What are the risks involved with my investment?
A: The truth of the matter is that racing harness horses is a speculative and a risky business. Horses can get sick, go lame and depreciate in value. However, the beauty of joining the Lime Spyder Racing Team is that you will own a piece of several horses that are racing each and every week. This diversification allows us the maximum protection. Thus, if one or two of our horses are out of action for a period of time, we will still have several horses racing that are earning purse money. In addition, there are important income tax considerations. The Lime Spyder Racing Team will take advantage of our LLC designation so that each of our members will receive the maximum tax benefits allowed under the law. Finally, because of the protection provided under our formation as a LLC, your maximum financial exposure is totally limited to your initial investment.
Q: What makes the Lime Spyder Racing Team different from other racing partnerships that are involved in harness racing?
A: There are several things that distinguish the Lime Spyder Racing Team from other partnerships. First of all, most partnerships being formed are ones that require monthly payments by the members to pay for expenses. There are no additional expenses involved with the Lime Spyder Racing Team. Secondly, the majority of all partnerships that are being offered today maintain their horses under a single trainer. In fact, a lot of these proposed partnerships are actually being formed by trainers seeking new owners. The strength of the Lime Spyder Racing Team is the diversification that is offered by the multiple, leading trainers that will control the training operations at several different tracks. Finally, the credentials and the experience of the management team and the trainers that the Lime Spyder Racing Team will utilize are unmatched by any other racing partnership in operation today.
Q: How do I join the Lime Spyder Racing Team?
A: Simply contact us through the mail via our Contact Form found on this site. You can also e-mail Dan Poprawski direct at daxtryax@msn.com, or you may call him on his cell phone at (708) 526-1987 so you can discuss personally with him you interest in the partnership.
