Life insurance is commonly used to fund buy-sell agreements for 1000`s of companies. Often Life insurance is considered as a funding mechanism for the buy-sell agreements & in many cases it is used for mitigating the risk (The Darkside) of the ESOP`s Repurchase...
We are not talking about Star Wars when we mention the Dark Side of ESOPs. We are talking about a very real, financially and fiduciarily binding obligation each ESOP must deal with – the repurchase of company shares of stock that employees participating in the...
If you are a Baby Boomer and the owner of a privately held business, you either are or will be part of one of the greatest transfers of private wealth ever. Baby Boomers (1945-1964) are now in their mid-50’s to early 70’s. The wealth transfer applies to each and every...
An ESOP (Employee Stock Ownership Plan) is a unique vehicle for owners and employees. An ESOP offers a flexible, tax-favorable way for owners to exit their business and provide retirement benefits and retain and motivate employees. ESOP’s are popular. In the U.S....
Although it’s a very powerful structure for many ESOP owned companies, it continues to be shocking to many owners and their tax advisors that a company owned 100% by an ESOP is essentially tax exempt. Believe it! This competitive tax advantage is the result of the...
Are your company’s ESOP repurchase obligations like a monster hiding in the closet? How can you develop a plan for managing and funding repurchase obligations if you don’t know what they are? An ESOP company with privately-held stock has a statutory...
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