Hey ThreeZero, do I need to file as a business or non for profit corp to accept sponsorship money? Will doing that help any? Please let me know your experience.
Sorry it took so long to get back to you, we've been out of the country for the past week. This is a great question. So before ThreeZero Racing even existed, we had one sponsor back in 2016. We pretty much accepted a cash only "donation" and then provided advertising for the company that sponsored us as a part of our deal. This to me is the best way to do things especially starting out. Now fast forward a few years and enter ThreeZero Racing. I knew that i was going to turn the ThreeZero Brand into a business so when it comes to taxes, I have to report everything that I spend, earn etc, but keep in mind we have revenue from races, sponsors, our UA-cam channel, and Patreon, plus any merchandise sales so we had to turn ThreeZero into a business and when I mean you have to report everything when you label your team as a business, I mean EVERYTHING, this includes fuel cost for the car, fuel cost for transporting the car, all of the parts for both the race car and hot rod, pit passes, entry and registration to all the car shows, etc. Unless you're planning on taking it to that level, take cash only sponsorship's or have them buy stuff for your car or however you work it out with them. The benefit to running your team as a business is that it can give you a tax break at the end of the year if you lose money (which most likely you will if you only race cars) which means more money back at the end of the year. Now if your team consistently loses money for several years, they will label your "business" as a hobby and that means no more tax breaks. My advice to you would be to befriend a knowledge tax professional who can help guide you and reach your goals. We have ours on speed dial at all times and they played a huge role in getting us where we want to be, but also making sure we do all of the necessary paperwork so we don't run into any legal issues down the road due to us not handling the right way. Hope this helps some!
@@ThreeZeroRacing what if you're not a weekly racer because you have other priorities like a family does that hurt your chances even with small businesses like hole in the wall restaurants and such
First step of landing multiple sponsors is to have a clean canvas for representing their business drawing up a sketch of how their business will look on your car talk about how many people it will be exposed to and of course make it available for company exhibits push their products at the track and of course conduct yourself in a very professional manner and go after chain gas stations and carry outs locally owned fast food restaurants can create a buzz if you're willing to give handouts as in coupons and company swag the fans eat it up and it makes it very identifiable the amount of business you're driving for them in which gives you the opportunity for more financial backing go at them with the attitude this is why you want to be on my car its a winning proposition
I have a question..I am trying to begin my racing dreams and am AD Air Force in Cheyenne, Wyoming. How do you go ask them for the partnership? In person or do you send their marketing people a sponsorship package for a deal with like a poster board or something that sho0ws your race team design and what you are trying to accomplish? Hit me up when you can. Thanks. AD Guy Wyoming.
At 12:23 you say keep it conservative, If I were to go to a sponcer and say I will charge $750/ a race for a hood logo or $50/for a a-post logo or $500/a race for a quarter pannel logo would you say do that or is that asking too much?
Hey, I know it’s six years later but I am hungry. I want this. It’s all I have thought about for the past two years. I’ve tried to get into other things but nothing gets going more than speed. I know I have the passion. I just a need a big break. A HUGE BREAK. I don’t come from a rich family and I don’t come from a poor family. I am confused and I want this badly. What do I do?
I have a 1981 Monte Carlo drag car and it’s pretty fast and I’m a really nice person and where we race at colonial beach dragway in Virginia will they still like this and maybe give me a sponsor
If u got help with money coming in bro the gear is not the only thing to get u up front put money in the motor if not u will stay in the back hope to u see u up front at Cherokee next time
Great advice man Do you think you would ever sponsor anyone I've never raced before but I would work on the cars for free just to get the experience I wouldn't expect any prize money either maybe you could throw me in the car and see how I do
I mean I'm 15 now, and my dad's work Buddy is an imca modified chassis builder and racer, and he said for sure he would sponsor me when I get started racing because he has seen me and my spirit on the RC track and he was around when my dad raced street stocks and did very well so eyyyy 😁
Hey ThreeZero, do I need to file as a business or non for profit corp to accept sponsorship money? Will doing that help any? Please let me know your experience.
Sorry it took so long to get back to you, we've been out of the country for the past week. This is a great question. So before ThreeZero Racing even existed, we had one sponsor back in 2016. We pretty much accepted a cash only "donation" and then provided advertising for the company that sponsored us as a part of our deal. This to me is the best way to do things especially starting out. Now fast forward a few years and enter ThreeZero Racing. I knew that i was going to turn the ThreeZero Brand into a business so when it comes to taxes, I have to report everything that I spend, earn etc, but keep in mind we have revenue from races, sponsors, our UA-cam channel, and Patreon, plus any merchandise sales so we had to turn ThreeZero into a business and when I mean you have to report everything when you label your team as a business, I mean EVERYTHING, this includes fuel cost for the car, fuel cost for transporting the car, all of the parts for both the race car and hot rod, pit passes, entry and registration to all the car shows, etc. Unless you're planning on taking it to that level, take cash only sponsorship's or have them buy stuff for your car or however you work it out with them. The benefit to running your team as a business is that it can give you a tax break at the end of the year if you lose money (which most likely you will if you only race cars) which means more money back at the end of the year. Now if your team consistently loses money for several years, they will label your "business" as a hobby and that means no more tax breaks. My advice to you would be to befriend a knowledge tax professional who can help guide you and reach your goals. We have ours on speed dial at all times and they played a huge role in getting us where we want to be, but also making sure we do all of the necessary paperwork so we don't run into any legal issues down the road due to us not handling the right way. Hope this helps some!
@@ThreeZeroRacing what if you're not a weekly racer because you have other priorities like a family does that hurt your chances even with small businesses like hole in the wall restaurants and such
First step of landing multiple sponsors is to have a clean canvas for representing their business drawing up a sketch of how their business will look on your car talk about how many people it will be exposed to and of course make it available for company exhibits push their products at the track and of course conduct yourself in a very professional manner and go after chain gas stations and carry outs locally owned fast food restaurants can create a buzz if you're willing to give handouts as in coupons and company swag the fans eat it up and it makes it very identifiable the amount of business you're driving for them in which gives you the opportunity for more financial backing go at them with the attitude this is why you want to be on my car its a winning proposition
Definitely helped just got myself an IMCA MOD and this helped me get 2 major sponsors
you should do race day vlogs, what you do to car at track, how you prepare for race etc ,
xBWCAx I'm definitely planning on it! Just have to wait for race season to get here!
This is an awesome video, I'll have to refer to this one when I begin prepping for my first street stock season in a couple months.
I have a question..I am trying to begin my racing dreams and am AD Air Force in Cheyenne, Wyoming. How do you go ask them for the partnership? In person or do you send their marketing people a sponsorship package for a deal with like a poster board or something that sho0ws your race team design and what you are trying to accomplish? Hit me up when you can. Thanks. AD Guy Wyoming.
At 12:23 you say keep it conservative, If I were to go to a sponcer and say I will charge $750/ a race for a hood logo or $50/for a a-post logo or $500/a race for a quarter pannel logo would you say do that or is that asking too much?
Way too much starting out.
This really helped me, thanks!
We're glad we could help some!
Hey man you need to come to Lancaster Speedway this year
Hey, I know it’s six years later but I am hungry. I want this. It’s all I have thought about for the past two years. I’ve tried to get into other things but nothing gets going more than speed. I know I have the passion. I just a need a big break. A HUGE BREAK. I don’t come from a rich family and I don’t come from a poor family. I am confused and I want this badly. What do I do?
Have you ever tried pure stock?
I have a 1981 Monte Carlo drag car and it’s pretty fast and I’m a really nice person and where we race at colonial beach dragway in Virginia will they still like this and maybe give me a sponsor
If u got help with money coming in bro the gear is not the only thing to get u up front put money in the motor if not u will stay in the back hope to u see u up front at Cherokee next time
Our chassis was overhauled with the sponsor money from last year. This year were focusing on the motor. We can only do so much at one time
Great advice man Do you think you would ever sponsor anyone I've never raced before but I would work on the cars for free just to get the experience I wouldn't expect any prize money either maybe you could throw me in the car and see how I do
I mean I'm 15 now, and my dad's work Buddy is an imca modified chassis builder and racer, and he said for sure he would sponsor me when I get started racing because he has seen me and my spirit on the RC track and he was around when my dad raced street stocks and did very well so eyyyy 😁
Preaciate this video.