ESOP Blog

You are the CEO of a very successful, 100% ESOP owned S corporation. The company is profitable and running very well, paying no federal or state income taxes. The employees are happy. Out of the blue, you get an offer from a third ...
[Read more] about Selling an ESOP Company

When terminating a qualified retirement plan, there are undeniably many details. Once the termination and wind up of the trust process begins, questions, loose ends and other “speed bumps” can slow down the process considerably. In this article, we ...
[Read more] about The Top 5 “Speed Bumps” When Terminating an ESOP

It’s easiest to think of an ESOP loan as essentially a mortgage on the ESOP's shares held in its suspense account.  If the stock is sold, the ESOP trustee will pay off the debt and then the net proceeds from the payment of that debt will be the gain ...
[Read more] about When an ESOP Company Is Sold, Who Pays the ESOP Loan?

The Code requires that company stock in the ESOP must have full voting rights. In this video, we discuss who votes the shares held in the ESOP.   ESOP Trustee Duties and Shareholder Rights Since the ESOP trustee is the corporate ...
[Read more] about Who Votes the Shares Held in the ESOP?

There are multiple classes of stock that an ESOP can own. In our video, we discuss the different classes of stock.   Classes of Stock The Internal Revenue Code defines employer securities for privately held companies as including ...
[Read more] about What Classes of Stock Can an ESOP Own?