12 Benefits of Selling to an ESOP (#1)



 

 

 

 

 

Benefit #1 of selling to an ESOP: The sale of the company to the ESOP is being paid for by the company tax and cash flow savings over time.  An ESOP is one of the most cash and tax-efficient succession plans available to business owners. 

The portion of a company owned by an S Corporation ESOP is not subject to federal or state income taxation, increasing cash flow and providing the company with a competitive advantage. This means that S Corporations that are 100% ESOP-owned are not subject to any federal or state income taxes, increasing cash flow and providing the company with a competitive advantage. 

Is An ESOP Right For Your Company

Check out this brief animated video to learn more about ESOPs. 

2021 ESOP and Pension Plan Limits

The IRS has announced the 2021 pension plan limits, which includes the following: 

Common Challenges of Remote Work and Four Solutions for Employees

When unforeseen changes in our country occur, like a widespread pandemic,  many employee-owned companies now have employee owners working from home. I am sure everyone has a lot of questions about how to manage a remote workforce and maintain productivity during uncertain times. 

The Steps to Launching and Relaunching Your ESOP

You’ve sold your company to an ESOP. Now what? The way in which you launch your company’s ESOP can have lasting effects on the success of the ESOP and the buy-in and dedication of the employees. It is even beneficial to complete relaunches annually. The launch and subsequent relaunches should occur in a similar sequence every time.

How to Successfully Launch Your ESOP

Over the next several weeks, we will be completing a series of blog articles on how to correctly launch and relaunch your company’s employee stock ownership plan.  This will require some strategic planning, which should not be confused with a business plan.  The major fundamental difference between the two is a business plan is about short to mid-term goals and strategic goals are about long-term goals for the company’s success. 

An ESOP is a Business Transition Tool

An ESOP is a Business Transition Tool

ESOP stands for Employee Stock Ownership Plan.  An ESOP is qualified retirement plan that can be used as a business transition tool and as an employee ownership instrument. 

An employee stock ownership plan (ESOP) is a business transition tool that establishes an ESOP trust to be an ongoing perpetual owner of the company.

What is an Employee Stock Ownership Plan (ESOP)? Rev 2 May 2019

What is an Employee Stock Ownership Plan (ESOP)?

ESOP stands for Employee Stock Ownership Plan.  An ESOP is a qualified retirement plan that can be used as a business transition tool and as an employee ownership vehicle:

An ESOP is a Business Transition Tool

An ESOP is a Business Transition Tool

ESOP stands for Employee Stock Ownership Plan.  An ESOP is a qualified retirement plan that can be used as a business transition tool and as an employee ownership vehicle.

An employee stock ownership plan (ESOP) is a business transition tool that establishes an ESOP trust to be an ongoing perpetual owner of the company.

Four Expectations and Guidelines for Remote Employees

When unforeseen changes in our country occur, like a widespread pandemic,  many employee-owned companies now have employee owners working from home. I am sure everyone has a lot of questions about how to manage a remote workforce and maintain productivity during uncertain times. 

Why Financial Advisors Need to Know About ESOPs

As a financial advisor, your sole responsibility is the financial health of your clients. For clients who own a business, that includes the eventual transition of their company to new ownership. Are you prepared to guide them through this transition and to handle the significant shifts in their portfolio that will inevitably come about?

Keep Your ESOP On Track and On Time
12 Benefits of Incorporating an ESOP in your Business Exit Strategy

Recent Posts