SOLE PROPRIETOR OR PARTNERSHIP

Question
ED, I HAVE A 2YR OLD COLT, GETTING CLOSE TO RACE. IF I HAVE SOME FRIENDS PUT UP A LITTLE MONEY TO SHARE IN THE FUN, DO I
HAVE TO SET UP A PARTNERSHIP. I WOULD HOPE I COULD BE THE SOLE PROPRIETOR (FILE SCHEDULE 'C' WITH MY 1040) AND IF WE HAVE ANY PROFIT LEFT I CAN GIVE THEM A 1099 MISC. THEY WOULD NOT BE ACTIVE IN THE MANAGEMENT. WHAT DO MOST GUYS DO? DO WHAT I
PROPOSE OR DO YOU HAVE TO GO THE PARTNERSHIP ROUTE AND ALL THE EXTRA TAX FORMS TO FILE?  IF SOMEBODY HAD 30 HORSES THIS
COULD GET VERY TIME CONSUMING TO SET UP PARTNERSHIPS.
DO SOME JUST OPERATE ON A VERBAL AGREEMENT OR SIMPLE WRITTEN AGREEMENT AND LET THE SOLE PROPRIETOR PAY OUT PROFITS? THE HORSE IS IN MY NAME. IF YOU DID SET UP A PARTNERSHIP DO YOU
HAVE TO CHANGE THE JOCKEY CLUB REGISTRATION TO INCLUDE THE OTHER PARTNERS?  SORRY FOR THE LENGTH. A BRIEF TRY TO ANSWER IS MOST APPRECIATED.  
THANKS - KURT  

Answer
hi --well everything has to be on the up and up. especially with the racing commission. even though it is a lot of paper work etc. everyone  associated with the ownership of this horse has to be listed as the owners and it will have to run in a partnership or a stable name. in other words, just get everyone together and  discuss the whole thing and see which way is the easiest way to run the  horse FOR EVERYONE CONCERNED .. partnership or stable name. hope this helps you  thanks ED HESS