Question: Please draft a memorandum answering the following fact pattern and question. The length of the memorandum should be no longer than one page double spaced,

Please draft a memorandum answering the following fact pattern and question. The length of the memorandum should be no longer than one page double spaced, but it should cover all relevant information.

Internal Law Research Memorandum

John and Mary Smith are a married couple living in the state of California. They own a rental home and some friends told them that they should own it in a business, but they couldn’t explain why. John and Mary are concerned about the following issues:

Keep their tax liability as low as possible.
Keep their tax complexity as simple as possible.
They don’t want it to be too complicated to operate.

Step by Step Solution

★★★★★

3.36 Rating (149 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Solution Business Entity Choice Memorandum Limited Liability Companies Limited liability companies or LLCs are organized in a manner similar to corporations LLCs are formed upon the filing of articles ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (2 attachments)

636913ed9704a_241703.pdf

180 KBs PDF File

636913ed9704a_241703.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Explain why an employee should be concerned about whether his employer reimburses business expenses using an "accountable" plan?

Explain why government is usually more concerned about regulating an oligopoly than a monopolistically competitive market.

Explain why bank regulators are so concerned about capital adequacy for the banking system.

Cecil C. Seymour is a 64-year-old widower. He had income for 2015 as follows: Pension from former employer......................................................... $39,850 Interest income from Alto...

Cress Trust owns houses in Marion County, for whom Rainbow Realty Group, Inc., sells, rents, and manages. The same person serves as Rainbows president and Cresss corporate trustee. Cress offers four...

Phase A of the joint FASB and IASB conceptual framework project stipulates the desired fundamental and enhancing qualitative characteristics of accounting information. Several constraints impede...

A 2013 Pew poll said that 93% of young adults in the United States have Internet access. Assume that this is still correct. a. If two people are randomly selected, what is the probability that they...

Access EDGAR online (SEC.gov) and locate the 10-K report of The Gap, Inc. (ticker: GPS), filed on March 23, 2015. Review its financial statements reported for the year ended January 31, 2015, to...

Dust Buster's Inc. manufactures two types of small hand-operated vacuum cleaners. Dust Busters is concerned about quality issues and has compiled the following information for the past year...

The Executive Board of Theatrical Stage Employees Local 44 voted unanimously to expel local president James Myers from membership for allegedly accepting a $100 bribe from a prospective union member....

1.Explain clearly the principle and concept of Job Order Costing Break Even Point and CVP Analysis Budgetary Planning Financial Statement Analysis Get the explanation coming from atleast 3 different...

Define line and staff authority

Define the process of communication

Explain the importance of effective communication

* What is the importance of soil testing in civil engineering?

* What are the key differences between reinforced concrete and prestressed concrete?

Overline Merge Cell CLICK HERE TO SAVE YOUR WORK A B 1 D E F G H - 2 Process Costing - Weighted Average Method (26 marks) 3 4 5 6 Juice & Fruit Company uses a Weighted Average process costing system....

U.S. households have become smaller over the years. The following table from the 2010 GSS contains information on the number of people currently aged 18 years or older living in a respondent's...

What accounts are most important on the liability side of a balance sheet?

Suppose the management of the First National Bank of New York decides that it needs to expand its fee-income-generating services. Among the services the bank is considering adding to its service menu...

Along with the Report of Condition submitted above, Norfolk has also prepared a Report of Income for the FDIC. Please fill in the missing items from its statement shown below (all figures in millions...

Your inheritance, which is in a blind trust, is invested entirely in McDonalds or in U.S. Steel. Because the trustee owns several McDonalds franchises, you believe the probability that the investment...

A continuous random variable X has the following density function: a. Draw a graph of this density. Verify that the area under the density function equals 1. b. A density function such as this one is...

You are the mechanical engineer in charge of maintaining the machines in a factory. The plant manager has asked you to evaluate a proposal to replace the current machines with new ones. The old and...