Posted 206 days ago ago by OSF Staff Writer 0 Comments
If you're looking for a way to keep your agency employees happy for the long-term while rewarding yourself for years of hard work as an agency owner, consider Employee Stock Ownership Plans (ESOPs). The main advantages that a leveraged ESOP can provide to a closely held agency and its owners can be summarized as follows:
- The agency’s ability to finance the acquisition of its shareholders’ stock using pretax dollars as a result of ESOP loan payments.
- The seller’s ability to defer capital gains tax (potentially forever) on the sale of C corporation stock to the ESOP.
- The agency’s retention of income tax payments as a result of ESOP stock ownership in S corporations.
- The employees gain a motivating retirement benefit that can potentially increase the value of the company by leveraging an ownership mentality.
Learn more about why an ESOP is a business perpetuation planning tool worth considering from Chuck Coyne, Managing Director of Empire Valuation Consultants, LLC a national independent business valuation firm.