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...d Life commissions, fee income, contingent income, and investment income. Reve...nses as country club dues, automobile leases for non-employee family members, ...

... , but at a cost of additional complications and costs. Is it worth the cost? What assets outside the agency do you have? Being associated with others brings business benefits, such as help from other agents, additional markets, or ability to qualify for better contingency payments. Are they worth the loss of control over the organization? How much control over his business is the agent willing to give up? An agent in a cluster has more control over his business than an incorporated one. Likewise, an agent who retains ... retained earnings. Income may be taxed to the C corporation when the corporation earns it, and again to the shareholder when profits are withdrawn by dividend or on liquidation. This double taxation can be avoided to some extent by taking income out in salaries, bonuses, lease payments, etc., which generate deductions to offset income at the corporate level. When winding up a C corporation, the law no longer permits you to sell the corporate assets but avoid a tax on the gain at the corporate level. Taxes may be ... by mergers or some other reorganizations, but the tax will be paid if the stock received in the reorganization is sold during the shareholder's lifetime. On the shareholder's death, however, the basis of the stockholder's stock is then stepped up to its' date of death value, so that his heirs will escape the tax when they sell. Minimum California franchise tax. California imposes a minimum franchise tax on corporations. That tax is presently $800. Some added employment taxes. The combined social security tax on the corporation and the ...

...g income out in salaries, bonuses, lease payments, etc., which generate deduct...e corporate shield against personal liability important? Does the agent have s...

...issions excluding all so-called contingent, bonus and profit sharing commissio... omissions insurance with limits of liability of $1 million in the aggregate p...

...issions excluding all so-called contingent, bonus and profit sharing commissio...rty is in default under any contract, lease or agreement, whether written or o...

...es each have subproducer codes. Contingent bonuses might be shared equally, or...

... insurance expirations? How stable are they? Over the five year period under review, has profit-sharing income averaged less than 8% of the prior year's property-casualty commissions? Why? This could be an indication of poor agency underwriting or insufficient volume with major carriers. If contingent income was a substantial contributor to agency income in the past (over 12% of total revenues), what is the prognosis for the future? Will recent loss experience impact profit-sharing income adversely for the next three years? The amount of interest income on premium ... . In situations where an existing operation is going to be maintained and sometimes also in fold-in arrangements, other aspects of the agency must be included in the evaluation, such as: location and appearance of the office, available square footage, ownership of the building or lease arrangements, condition of equipment and furniture; existing automated systems and compatibility with or superiority over buyer's systems; organizational structure and personnel policies (vacation, holidays, benefits, salary administration, and performance evaluation); effectiveness of procedures for handling insurance-related functions, accounting ... and clerical jobs such as mail, filing, and switchboard. In situations where an existing operation is going to be maintained and sometimes also in fold-in arrangements, other aspects of the agency must be included in the evaluation, such as: location and appearance of the office, available square footage, ownership of the building or lease arrangements, condition of equipment and furniture; existing automated systems and compatibility with or superiority over buyer's systems; organizational structure and personnel policies (vacation, holidays, benefits, salary administration, and performance evaluation ...

... volume with major carriers. If contingent income was a substantial contributo...footage, ownership of the building or lease arrangements, condition of equipme...

...ncy shall receive any so-called contingent, bonus or profit sharing commission...nts 3(aa) Agreements 3(bb) Terms of Lease of Office Premises 3(ee) Agency A...

... right to receive all so-called contingent bonus or profit sharing commissions... Accounting Date, the cost of which coverage shall be borne exclusively by the...