Being that Kentucky is the home of one of the best-known horse races in the world, it is not surprising that the equine industry makes up an important part of Louisville and Lexington’s economies.
Like any other business, an operation that makes its money in the equine industry will have some basic legal needs.
If the company is new, for example, it will need legally to organize and, in all likelihood, see to it that it has the necessary financing and other contracts negotiated to start operations.
As employees are often the backbone of an equine business, even an experienced owner will also need to be sure that the company is fully complying with employment laws.
Beyond that, horse businesses have a lot of industry-specific legal problems that may require the right knowledge and experience to handle.
The business may need to understand environmental, other rules and regulations
For one, many people who are earning a living in the horse industry will have to be mindful of federal environmental regulations. The regulations may require a business owner to take appropriate steps to protect the environment, specifically nearby sources of water, as the business goes about its operations.
While this is of course a good thing to do, financial realities may require a business to find a way to follow these laws while continuing to operate within its means.
Failing to strike this balance could, on one hand, lead to poor profitability and, on the other hand, the possibility of crippling government fines and even the prospect of business failure or, in the most extreme cases, criminal charges.
Likewise, many horse operations will have to navigate local and state zoning or land use laws.
Finally, if something does go wrong as the organization continues to grow, an equine business will have to have a good understanding of its legal relationship with its insurance carriers and what that means when it comes to getting losses covered.