Write a Clietn Letterjanahg
Bill Jones has been referred to you by Pete Aaron, a local attorney. Bill is planning to commence a new business venture, Jones Online Resources (JOR). Due to the speculative nature of the proposed business, Aaron has recommended Jones operate the business under a new corporation to be formed by Aaron.
Jones will be the sole investor and expects to contribute $1,000,000 in cash to the venture. No other financing is expected at this time.
Jones has requested your advice on how to best structure the capital of the corporation. In a letter to Jones and Aaron explain the tax ramifications of the various alternatives for the capital structure of the corporation.
- 6 years ago