Write a one to two ( 1-2 ) page letter in which you :
1 . Compare the tax advantages of debt versus equity capital formation of the corporation for the client .
2 . Recommend to the client whether he / she should use debt or equity for capital formation of the new corporation , based on your research . Provide a rationale for the response .
3 . Use the six ( 6 ) step tax research process , located in Chapter 1 and demonstrated in Appendix A of the textbook , to record your research for communications to the client .
Your assignment must follow these formatting requirements :
• Be typed , double spaced , using Times New Roman font ( size 12 ), with one-inch margins on all sides ; citations and references must follow APA or school-specific format . Check with your professor for any additional instructions .
• Include a cover page containing the title of the assignment , the student ’ s name , the professor ’ s name , the course title , and the date . The cover page and the reference page are not included in the required assignment page length .
The specific course learning outcomes associated with this assignment are :
• Analyze tax issues regarding corporate formations , capital structures , income tax , non-liquidating distributions , or other corporate levies .
• Use technology and information resources to research issues in organizational tax research and planning .
• Write clearly and concisely about organizational tax research and planning using proper writing mechanics .