A: I would say yes, especially if it is in the power of attorney that they can be compensated. If you want to reduce that down to a payment agreement, you can; it may not be necessary, but you can definitely do that. I would start with the durable power of attorney first!
A: A sole proprietorship is one of the simplest forms of business organization. However if you are seeking limited liability protection the best would be a limited liability company. You still receive flow through tax treatment but your personal assets would be protected, as long as business and personal assets are kept separate.