Employee Stock Ownership Plan
What is an ESOP?
An ESOP is a defined contribution employee benefit plan that allows employees to become owners of stock in the company by which they are employed. It is an equity based deferred compensation plan.
A business owner with any of the following goals should consider the ESOP advantages:
- Improve business performance though equity incentives
- Enable shareholders to sell their stock on a tax-free basis within the next 5 to 10 years
- Enable shareholders to diversify their holdings in the company on a tax-free basis and still maintain control of the company
- Buy-out inactive minority shareholders on a tax-deductible basis for the corporation and a tax-free basis for the selling shareholders
- Grow the company through acquisitions on a tax-deductible basis
- Share equity in the company with employees to attract, retain and reward a productive workforce
To determine if an ESOP is the right choice
for your company
Call
847-888-8600
