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ESOP Blog

A Brief Overview of an ESOP’s Tax Benefits

[fa icon="calendar'] Aug 8, 2017 12:31:59 PM / by Wendy Gilligan posted in ESOP

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ESOPs, like all investment vehicles, have certain tax considerations. We can help you understand these tax features and design your ESOP to best suit the needs of all parties involved. Here are some ways tax law can impact the various parties involved in an ESOP.

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How to Determine if an ESOP Is Right for You

[fa icon="calendar'] Jun 15, 2017 11:07:57 AM / by Sheryl Bayani-Alzona posted in ESOP

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Employee stock ownership plans (ESOPs) offer compelling advantages for business owners, companies and their employees. Out of all the business planning options out there, they stand out because of their flexibility.

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The Employee Stock Ownership Plan Basics You Need to Know

[fa icon="calendar'] Jun 1, 2017 10:49:03 AM / by Wendy Gilligan posted in ESOP

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An employee stock ownership plan (ESOP) can be a useful tool for meeting a wide array of business goals for nonpublicly traded companies, but they can intimidate even the savviest business owner. That shouldn’t be the case. With the right guidance from the right advisors, you can quickly decide if an ESOP is the right way to achieve personal and business goals. This primer on ESOPs will help get you there.

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Reshuffling The ESOP - Good For Everyone On Deck ... And Off

[fa icon="calendar'] Feb 7, 2017 7:29:39 PM / by Kevin Long posted in ESOP

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There are a variety of options for ESOP companies looking to maximize stock allocations to active participants, minimize stock allocations to terminated participants, and efficiently use the cash within the trust to accomplish these objectives. This article briefly looks at two of them.

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Five Ways ESOPs Fit Your Succession Plan

[fa icon="calendar'] Feb 2, 2017 1:47:35 PM / by Wendy Gilligan

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An ESOP can be a powerful succession planning tool for your business.  But relatively few advisors in the marketplace know enough about ESOPs to give you the information you need.  We'll give you a head start. Here are five ways an ESOP can fit, or even drive, your succession plan.

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ESOP Restatements And Submissions ... Making The Most Of Your Relationship With The IRS?

[fa icon="calendar'] Feb 2, 2017 7:09:11 AM / by Kevin Long posted in ESOP

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By now, all companies sponsoring ESOPs should be aware that their plan documents must be restated and submitted to the IRS every five years for a letter of determination of their tax qualified status. What they may not realize is that the ESOP restatement process offers potentially unrealized opportunities for cost efficiency, employer protection and creative re-design.

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ESOPS: Should S Corporations Adopt Them?

[fa icon="calendar'] Feb 2, 2017 7:05:32 AM / by Kevin Long posted in ESOP

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The significant tax savings currently heralded in the tax press for S corporations that use an ESOP depend on the strategy for the use of the ESOP, as well as the strategy for using the cash that the plan might be able to accumulate in lieu of paying it into federal and state taxes. The best way to evaluate the potential tax and cash flow savings is to analyze the traditional ESOP strategies in an S corporation context. Only then do the issues and the opportunities become clear.

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ESOPS & Limited Liability Companies: Converting To A Corporation

[fa icon="calendar'] Feb 2, 2017 7:01:16 AM / by Wendy Gilligan posted in ESOP

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Want an ESOP But Have an LLC? Convert! 

Business owners frequently choose to operate as a limited liability company (LLC) because it provides for a less formal governance structure and the option to be taxed as a partnership. But, the downside for LLC owners considering an ESOP is that an ESOP must be invested primarily in "employer securities" and membership interests in an LLC taxed as a partnership don't count.

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Corporate Succession Planning and the CPA

[fa icon="calendar'] Jul 2, 2016 1:51:00 PM / by Kevin Long

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There is no denying that all privately held companies will, at some point, be sold to or merge with a third party, transferred to family members, sold to their employees – or not survive. Very few companies have the option of going public. Because most non-publicly traded corporations eventually face the challenge of succession planning to perpetuate and flourish, the only big questions for the owners and shareholders are how and when?

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ESOPs: The Three Types

[fa icon="calendar'] Jun 29, 2015 9:00:00 AM / by Kevin Long

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This article will acquaint you with the utility of the ESOP as both a technique of corporate finance and an employee benefit plan. It is important to note, however, that there are other employee benefit plans that can be used to invest in stock of the employer sponsor. There are profit sharing plans, stock bonus plans which are not ESOPs, and combinations of 401(k) arrangements and profit sharing plans. An ESOP, even with its different variations, is just one of the alternatives in this area.

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