Benefits of an ESOP
Owner Benefits
Employee Benefits
Employee Benefits
Addresses lack of succession plan of privately held companies.
Establishes a market to sell.
Preserves the legacy of the owner.
Satisfaction in helping those who have faithfully served the business.
Tax incentive - defer or cancel capital gains tax on sale. (IRC Sect. 1042)
Employee Benefits
Employee Benefits
Employee Benefits
Fosters pride and the ownership culture.
Rewards employees for their hard work.
Addresses income & wealth inequalities.
Diversification with co-retirement, potential for more retirement money.
Tax incentive - A Qualified Retirement Plan, only taxed when withdrawn.
Company Benefits
Local Community Benefits
Local Community Benefits
Company sustainability.
More productive workforce.
Greater training and employee development.
Tax incentive - deduct principal and interest on loan, deduct C-dividends,
% owned by S-Corp ESOP not subject to federal or state income tax.
Local Community Benefits
Local Community Benefits
Local Community Benefits
Keeps local businesses in-business and avoids workforce being carved-up and outsourced to locations far away from the community.