The Top Benefits of an ESOP for Your Company

Establishing an Employee Stock Ownership Plan (ESOP) is a powerful finance and employee benefit tool. While an ESOP may not be the right fit for every business owner’s situation, understanding the benefits may open the door to a valuable business transition and growth tool you need to consider.

An ESOP Company Pays no Federal or State Income Taxes

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. 

How an ESOP Business Succession Plan Pays For Itself

We have been exploring how an ESOP can be a key component of your Business Succession Plan.  Selling to an ESOP helps the business owner Maximize the After-Tax Proceeds, Providing the Greatest After-Tax Return while at the same time Increasing the Cash Flow of the Company by Eliminating the Company’s Ongoing Income Tax Obligation.  In other words, the tax savings for Incorporating an ESOP in your Business Succession Plan will provide the funding for the sale of the company to the ESOP.

Business Succession Planning: Increase Company Cash Flow by Eliminating Taxes

We have been discussing how the recent ESOP Economic Performance Survey (EPS) revealed that 93% of ESOP companies found that establishing an ESOP was “a good business decision that has helped the company.”  While there are many reasons for this, one of the significant reasons is because S Corporation ESOP companies are not subject to income taxation (federal and most states), increasing cash flow and providing the company with a competitive advantage.  Yes, you read that right, S CORPORATION ESOP COMPANIES ARE NOT SUBJECT TO INCOME TAXATION!

Business Succession Planning: How to Increase After-Tax Proceeds Using an ESOP

The results of the ESOP Economic Performance Survey (EPS) were released last week – 93% of ESOP companies found that establishing an ESOP was “a good business decision that has helped the company.”  If a business owner is interested in preserving the long-term success of the company and its employees after he/she leaves or sells the company, this is a pretty strong indicator that an Employee Stock Ownership Plan (ESOP) would be an ideal way to accomplish that objective.

Business Exit Strategy: Increase After-Tax Proceeds With an ESOP

When a business is sold to a third party, the buyer generally prefers to purchase a company’s assets rather than its stock, whereas the seller would rather sell the stock. The decision of asset sale or stock sale is often subject to the negotiation process and is an important consideration when developing your business exit strategy.

Survey Says Organization's Culture is #1 Reason Employees Stay

Retaining a valuable employee is one of the bigger challenges a small business owner will have to find a solution to in order to achieve long-term success. Much is invested in both time and money to recruit and train good employees. So what exactly does it take to attract and retain a good employee today?  

ESOP Administration: Methods of ESOP Distributions

To complete my blog series on ESOP distributions, today I’d like to discuss the methods of distributions available to ESOPs. For information on Timing of ESOP Distributions and Forms of ESOP Distributions, please visit my previous blog posts.

Organizational Trust and Ownership Culture Drives Company Success!

A recent article from the Human Capital Institute (HCI), "Want Trust? Be a Leader" says, “to be trusted is a greater compliment than to be loved”. 

ESOP Administration: Forms of ESOP Distributions

Now that we are mid-way through 2012, I thought it would be a good time to write a series of blogs on ESOP Distributions, as most calendar year plans are in, or will soon be in, their ESOP distribution processing season.

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

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