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... plan participants must be able to vote their stock on all matters. The ESOP stock is usually voted by management, except on extraordinary decisions such as mergers. The owners may not want to give up some control in order to obtain the 50% deduction for the lender. The ESOPs also create potential problems. Formation and operating costs for ESOPS are often substantial, though they don't have to be. The cost of complying with requirements of a lender for leveraged ESOPS can be particularly high. Formation costs may be in the neighborhood ... . A sole proprietorship is a business owned by one person, or by a husband and wife as their community property. It has the following advantages and disadvantages: Simplest to operate. Costs less in taxes and expenses to operate. No double taxation problems. Personal liability of the owner for debts of agency, which exposes his non-agency assets. Multiple owners are not possible (apart from spouses) . Merger with another corporation is not an option without incorporation. 1.2.2 Unincorporated Cluster of individual agencies. The term cluster' normally refers ... . Internal purchases by producers can be facilitated by a partnership or by an ESOP. 1.2. Form of organization of agency. &# 160 1.2.1 Sole proprietorship. A sole proprietorship is a business owned by one person, or by a husband and wife as their community property. It has the following advantages and disadvantages: Simplest to operate. Costs less in taxes and expenses to operate. No double taxation problems. Personal liability of the owner for debts of agency, which exposes his non-agency assets. Multiple owners are not possible ...

... obtain the 50% deduction for the lender. The ESOPs also create potential p...e corporate shield against personal liability important? Does the agent have s...