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A non-leveraged ESOP does not involve borrowed funds to acquire the sponsoring employer’s stock. It is funded by contributions of cash or stock directly from the employer sponsor. Learn more in the video.   Non-leveraged ...
[Read more] about What Is a Non-leveraged ESOP?

Historically, ESOPs were custom written documents produced by lawyers, which had to be submitted to the Internal Revenue Service for approval. These documents could be costly to amend and maintain. With the arrival this summer of IRS pre-approved ...
[Read more] about Finally! Pre-approved ESOP Plan Documents to Make Your Life Easier

An ESOP may provide a more flexible solution for company owners compared to a traditional company sale. Watch the video to learn more about a leveraged buyout ESOP.   Leveraged Buyout ESOP A leveraged buyout ESOP is a transaction ...
[Read more] about What Is a Leveraged Buyout 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 common ...
[Read more] about What Classes of Stock Can an ESOP Own?

Once the ESOP owns all of the company stock, it faces the challenge of how to get stock into the hands of new employees. Watch our video to learn more.   Approaches to Free Up Shares The simplest and most straightforward approach is for ...
[Read more] about What Can an ESOP Company Do Once the ESOP Owns All the Stock?

ESOPs and ESOP transactions are highly complex. They involve several areas of the Internal Revenue Code including corporate taxation, qualified plan, design and administration, and mechanical tests. It is important to understand how ESOP transactions ...
[Read more] about What Are the Tax Risks of an ESOP Malfunction?