| Employee Stock
Ownership Plan (ESOP)
A specialized tax-qualified plan where monies
can be contributed in stocks or cash to the ESOP on
a tax deductible basis, thereby increasing working capital
and cash flow.
Key Benefits of a Employee
Stock Ownership Plan:
-
Create a liquid, private
market for your company's stock.
-
Facilitate the smooth
succession of the company to the management
team.
-
Allows for the sale of
privately held stock tax-deferred or tax-free
while the business owner keeps control of
the company.
-
Gives your employees
equity in the company, making them more
loyal, productive, and profitable.
-
Deduct both principal
and interest on bank debt.
-
Make your stock dividends
deductible.
|
Who Can Establish:
- Public or Private Corporations
|
Annual Contributions:
- The lesser of the maximum $41,000 or 100%
of employee pay.
|
ESOP Candidates:
-
A private corporation owner
wanting to sell some of his stock on a tax
free basis and still maintain control of the
company.
-
A company wanting to buy
out minority shareholders on a tax deductible
basis for the corporation and tax free for
the selling shareholders.
-
A company wanting to make
acquisitions on a tax deductible basis.
-
A business owner who wants
to share equity in the company with employees
to attract, retain, and reward a productive
work force.
|
Contact a UVEST Investment
Consultant to go over your options for retirement.
|
