Defining an ESOP
Diagram above shows a typical leveraged ESOP design.
An Employee Stock Ownership Plan (ESOP) is:
A financing method for transferring business ownership.
A Defined Contribution Retirement Plan operating under the legal framework of IRC, ERISA, and DOL regulatory agencies.
A way to foster accountability, pride, and an ownership culture among employees as they become beneficial owners.
There are approximately 6,600 ESOPs in the United States with 14 million participants, holding total assets of nearly $1.4 trillion.
ESOP Benefits
There are many benefits to the Owner, Employees, Company, and Community that make this form of business sale very appealing, including many tax advantages!