Business Entity Formation Memorandum

Business Entity Formation Memorandum

Business Entity Formation MemorandumFormat: This memo will be typed and doubled spaced (yes that is different from usual memo
formatting) in Times New Roman 12 Point Font. The correct length is whatever it takes to adequately
explain your recommendation to the client. I doubt a quality paper will be any less than 3 pages, but
should not exceed 6. Given your newly found status as attorney, your paper should be grammatically
correct and include generic cites to used material. Here is an example from Professor Brad Reid at ACU:
Quote you textbook: Miller-Jentz Page _____ “ ”.
Quote cases from Lexis-Nexis: Jones v. Smith (Alaska Supreme Court, 2005) and quote
language from the case “ ”. Include the case name, court, state, and year.
Quote legislation: Arizona Entertainment Code, Section _____ “ ”. In like manner, quote
Quote the Web: “ ”.
Quote articles: Litigation Reporter, January 20, 2005 “ ”.
Quote interviews: Interview with Jane Smith, May 15, 2005 “ “.
Your format may be that of a memorandum, formal business letter, or any other format that makes sense
for this situation.
Fact Pattern:
You just passed the bar and are working at a small firm in Lubbock when a new client strolls into your
office with the following situation:
My name is Billy Joe Smith and I want to take advantage of the amazing demand for tortillas out here,
especially with all of them kids chunkin em at the Tech games. I’ve been messin around in the kitchen
and came up with a winning recipe I reckon. My tortillas are aerodynamic and heavy enough to really
allow for them to get on to the field or hit opposing players…lol. They’re also infused with honey, so
you can have a tasty snack right out of the package. Everyone who’s tried em loves em. I put my
$20,000 tortilla press that I bought on Ebay at Sammy Jo’s house, because he has lots of land and a nice building here in town. I don’t have a lot of cash or personal assets, so I’m probably going to need some money at some point to help with supplies and advertising. I talked to granny the other day and she’s willing to help, but she’s concerned about losing all her cotton fortune if a problem came up. I told her she was crazy, as I know what I’m doin. I thought I could just start baking and selling to keep costs down, but my cousin Sammy Jo, who wants to be a part owner/operator of the business, said I might need to talk with one of you legal fellers first. I really don’t like the idea of paying any more taxes than I have too. Should I do anything special or should we just take grannies cash and get going?
Your task is to draft a memo to the client expressing your opinion as to what he should do with regards
to the organization of his business. You should discuss completely the business entity (chose from only
those we specifically discussed in class – yes the text does mention others) you recommend and also
give him reasons why you might not have felt that the other forms were very appropriate (Do not ignore this part, though some entities may be dismissed quickly and should be), as you want to anticipate questions.

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