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Ruiz and his two brothers founded a social club called the Last Snake Inn in 1990. They want to take advantage of a new state law that lets them serve beer, liquor, and wine to their patrons on Sundays. To do so, the club must obtain a special liquor license that is required of all retail businesses wishing to serve alcohol on Sundays. Ruiz and his brothers want to incorporate the club specifically to acquire the special license. The club will continue to be operated by the three brothers as before, with each paying for supplies and other materials as needed out of his own pocket. The three brothers will serve as the corporation's officers. Ruiz is designated as the president. He has learned that to form a corporation, it must have a clear business purpose, and wonders whether forming a corporation merely to acquire a special liquor license sat- isfies the business purpose requirement. Write a letter to Ruiz that addresses his con- cern about having sufficient business purpose for his planned incorporation of the club.
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