By David Blauzvern Tax advantages are a major draw for closely-held companies considering employee stock ownership plans. But it’s easy to get lost in the various deductions and exemptions. How an ESOP-owned company is organized, and other factors such as its annual payroll, impact the tax incentives to which it’s…

By Michael Bannon Employee stock ownership plans offer explicit financial advantages enshrined in the US tax code. But beyond the corporate deductions, tax-advantaged liquidity events, and employee wealth-building opportunities lie a broader set of competitive and societal benefits. Improved morale, productivity, and financial well-being are hallmarks of employee-owned companies. Decades…

By Steve Berman The mechanics of employee stock ownership plans are a frequent source of confusion. Understanding how a trust gains equity, allocates shares, and how sponsors repurchase stock are among the most important concepts in an ESOP education. So, let’s dive-in and cover these core principles. How an Employee Stock Ownership Trust Acquires Shares ESOP shares aren’t…

By Alex Mumblat Despite wide-ranging benefits, employee stock ownership plans are often overlooked as bona fide succession and liquidity strategies. While the process of establishing and managing an ESOP is fairly straightforward, misinformation abounds. We run into employee ownership myths on a daily basis. Let’s tackle 10 of the most…

By Richard Harmon Bonus season is a cornerstone of the American workplace calendar. The anticipation surrounding holiday and performance-oriented cash compensation borders on expectation. An employee’s bonus can make or break their year. Cash bonuses are ubiquitous, but tax-inefficient. Employees can expect to lose 30% or more to taxes: 22% to federal income taxes (for supplemental income up to $1 million)

By Patrick Trask, CPA According to the US Bureau of Labor Statistics (BLS), 4.3 million Americans quit their jobs in August 2021. That’s 2.9% of the total non-farm workforce, the highest rate ever recorded by the BLS. …

By Alex Mumblat Valuations are central to the employee ownership process. When a company initially explores an ESOP, its fair market valuation can inform plan feasibility, structuring, and financing considerations. And once a plan is in place, annual valuations dictate the pricing of an employee’s allocated shares. The inner workings…

By David Blauzvern Business owners who want to monetize their hard-earned equity, or step away from their companies, have several M&A options. Many immediately gravitate to third-party sales. …

By Eitan Milstein Proposed tax code changes continue to dominate headlines. While talk of corporate, personal, and capital gains hikes echo throughout Capitol Hill, there’s been no legislative movement. This climate creates a fog for business owners considering a liquidity event. Transactions that close prior to passage of a potential…