Business Entity Application

Business Entity Application Assignment Fact Pattern: You just passed the bar and are working at a small firm in Belton, TX when new clients, John and Sue Smith, stroll into your office with the following situation: “After several years of having a vacation condo unit owned by several parties in “partnership” of sorts, we have now become the sole owners. It’s what we’ve always dreamed of, but by nature of our complete ownership, there may be some legal concerns now. Though we do intend to occupy the unit ourselves quite a bit in our upcoming retirement, we also anticipate that we might need to rent it out in the summertime to help cover some of the operating expenses. In talking with some of the other owners who rent year round, they mentioned the possibility of setting up a business entity to put condo in. Other than the condo, we really do not have much in the way of assets, thus we would like to keep the costs, as well as the paperwork/hassles at a minimum. We are required to carry substantial insurance on the place given its coastal location and vacation spot. Any advice would be greatly appreciated!” Do not consider/discuss the LP or the LLP as even a possibility. Format: This memo (look up general formatting if you don’t know) is to be typed in Times New Roman, 12 point font. Memos are generally single spaced. The correct length is whatever it takes to adequately explain your recommendation to the client and briefly discuss exactly why you would not recommend the others. I doubt a quality paper will be much less than 1.5 pages

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