How an Employee Stock Ownership Plan (ESOPs) works
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Josh & Jay welcome Will Steih, Managing Director of Prime Capital Investment Advisor’s Tennessee office, to the studio for the 5th and final chapter of our Business Owner Strategies & Solutions (B.O.S.S.) Series, a discussion about Employee Stock Ownership Plans (ESOPs). We discuss why a business owner would consider offering ownership in their company to its employees, including the typical criteria needed for a successful ESOP.
Key Takeaways:
- One of the potential benefits of an ESOP is increased productivity of the employee-owners and profitability of the business.
- The primary business owner can potentially sell company stock in a tax-free manner to the employees and there are potential tax savings related to lack of income taxes paid at the corporate level with an ESOP.
- An ESOP provides employees the ability to take an ownership mentality to the next level and participate in company’s growth over a long period of time. It also allows an owner to that would like to avoid selling to a competitor the ability to execute an succession plan.
- As companies like Publix & UPS have demonstrated, an ESOP represents the full cycle of the American Dream, giving employees the opportunity to have an ownership stake in the business that writes the paycheck.
Show Links:
https://gulfcoastfa.com/401k-forum
https://qualifiedplanadvisors.com/
https://everydollarcounts.libsyn.com/
https://www.firstprotective.com/
https://www.deepfriedstudios.com/
https://www.slothracerband.com/
Resources:
Gulf Coast Financial Advisors
Prime Capital Investment Advisors
Qualified Plan Advisors
Financial Fitness for Life
First Protective