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... and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Legal Outline For California Agencies - Chapter 1 4/30/2013 10:39:41 PM by CompleteMarkets Editor This content has not been rated yet. LEGAL OUTLINE FOR CALIFORNIA INSURANCE AGENCIES CHAPTER ONE FORM OF ORGANIZATION CHOICE OF A LEGAL FORM OF AGENCY OPERATION - PROPRIETORSHIP, CLUSTER OF INDIVIDUALS, PARTNERSHIP, OR CORPORATION. 1.1. Some possible objectives of owners in choosing the form of agency organization and perpetuation. The forms of agency organization, such as incorporation vs. partnership, may be elementary for most agents. However, the questions of how the stock and/or expirations are to be held, whether individually, by a partnership, or (for expirations) at the corporate level ... 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 (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 to a contractual arrangement between two or more individual agents that have joined together to share facilities and expenses, but have not formed a ...

...ibility and tax advantages of a partnership. However, along with those benefit... may well be an accidental general partnership, with unlimited potential cross-liability for all partners. Is your E&O co...

...ORSHIP, CLUSTER OF INDIVIDUALS, PARTNERSHIP, OR CORPORATION 1.1 Some possi...hould individual shareholders or a partnership hold them? Should I own stock in the corporation, or should a partnership hold it? See paragraphs 1.2.6-1...

...nies, sole proprietorships, or partnerships. Because the issues for these oth... had adequate E&O and other Liability coverage, and that this coverag...

... . He may set up an Employee Stock Ownership Plan or ESOP, under which he sells out to the agency's employees, possibly using a tax deferred rollover into other securities. He may merge with a large brokerage, possibly staying on for a time as an employee. The most typical transfer methods for an agency are sale of stock of a corporation, sale of assets of the agency, a partnership liquidation of the interest of a partner in a partnership, or a statutory merger or other reorganization of two corporations. 5.1.1. Price. The purchase price for the agency can be determined in a number of ways. There can be a formula, such as 1 times or 1.25 times commissions. Such formulas have a way of getting out of date quickly, so they should be used with ... transfer of an agency, the interests of the buyer and seller differ. The buyer is concerned with being able to make the payments from earnings of the business, with as little down as possible. He typically wants to be able to depreciate as many of the assets he acquires over as short a time as possible, to reduce the tax cost of the acquisition. He also wants to avoid liabilities of the acquired business, such as errors & omissions exposure. The seller may wish to defer tax from the sale. He normally wants as much of a down payment as possible. He typically would prefer to have capital gains treatment for the gain from the sale of the business, rather than ordinary income treatment, if he will be at a higher income level after the sale and the ...

... restrictions have caused many organizations to merge, acquire or.. All Articles by CompleteMarkets Editor Comments (0 ) Legal Outline For California Agencies - Chapter 1 This content has not been rated yet. CompleteMarkets Editor 4/30/2013 10:39:41 PM LEGAL OUTLINE FOR CALIFORNIA INSURANCE AGENCIES CHAPTER ONE FORM OF ORGANIZATION CHOICE OF A LEGAL FORM OF AGENCY OPERATION - PROPRIETORSHIP, CLUSTER OF INDIVIDUALS, PARTNERSHIP, OR COR.. All Articles by CompleteMarkets Editor Comments (0 ) Quick Renewal Checklist This content has not been rated yet. CompleteMarkets Editor 4/30/2013 10:37:47 PM QUICK RENEWAL CHECKLIST The FAX Of Life According To Your Insurance Agent To: From: Date: I'm Mad As Hell And I'm Not Gonna Take It Anymore! ' That line from the popular mov. ... ) Communicating With The Media This content has not been rated yet. CompleteMarkets Editor , Sally Praskey 4/30/2013 10:44:59 PM COMMUNICATING WITH THE MEDIA by Sally Praskey Reporters are like alligators; you don't have to love them, but you DO have to feed them. Steven Poole, director of corporate communications, .. All Articles by CompleteMarkets Editor Comments (0 ) Hidden Liabilities In Mergers And Acquisitions This content has not been rated yet. CompleteMarkets Editor , Arthur Parry 4/30/2013 10:43:49 PM HIDDEN LIABILITIES IN MERGERS AND ACQUISITIONS by Arthur Parry Increased financial benefits coupled with regulatory restrictions have caused many organizations to merge, acquire or.. All Articles by CompleteMarkets Editor Comments (0 ) Legal Outline For California Agencies - Chapter 1 This content has ...

...ive, and organized as a general partnership. Property/Casualty agencies are co...ng 'S' corporations into a general partnership. Those agencies interested in s...

...sale of assets of the agency, a partnership liquidation of the interest of a partner in a partnership, or a statutory merger or other re...ayments fully deductible through a partnership liquidation agreement than thro...

...ontrol of the court. However, a partnership or real estate investment company ...

...ger worked there. The brokerage partnership had split and her broker had gone ...SPs with his bank. His Professional Liability and Income Protection are with h...