Employee Stock Ownership Plan

An employee stock ownership plan (ESOP) is a qualified retirement plan that invests primarily in employer stock. ESOPs can be an attractive option for business owners looking for an exit strategy and a way to motivate and reward employees. They provide a flexible, tax-advantaged solution which can benefit selling shareholders, the company and employees.

Although an increasing number of companies are using them, the benefits of an ESOP are commonly misunderstood. Read our insights below to learn more about advantages and considerations of this type of plan.

Featured insights


Accounting for ESOP transactions

The fundamentals of accounting for leveraged ESOP transactions and what plan sponsors and their advisors can anticipate


Who controls an ESOP-owned company?

This article explores the parties involved and decision-making processes that occur when an ESOP owns a portion, or all, of a corporation.


For retirement-minded contractors, ESOPs are worth considering

Although not appropriate for every construction company, an ESOP carries several inherent advantages and is growing in popularity.


S corporation denied deduction for amount payable to ESOP participants

The tax court concluded that constructive ownership rules cause deductions to be deferred until participant includes amount in income.


Don’t leave money on the table in ESOP transactions

S corporations owned 100 percent by ESOPs are tax-exempt entities so proper planning prior to a transaction allows permanent tax savings.

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