ESOP Advisor in Arnold, MO

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ESOP advisor in Arnold, MO. Employee stock ownership plans (ESOPs) have become an increasingly well-liked retirement benefit for employees in various industries in Arnold, MO. They offer business owners a chance to exit their company while significantly reducing taxes on the sale, and offer employees a qualified retirement plan that increases their productivity and motivation. However, designing, implementing, and maintaining an ESOP isn't something most Arnold, MO business owners can do alone. Correct Capital's knowledgeable and savvy ESOP advisors help businesses of all sizes, in Arnold, MO and around the country, design tailored retirement plans that benefit themselves, their employees, and their profit.

If you're in search of a trustworthy financial partner in Arnold, MO who shares your goals of setting up your company and employees for sustained success, call Correct Capital at 877-930-4015, contact us online, or schedule an appointment with one of our financial advisors at this moment.


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About Employee Stock Ownership Plans (ESOPs)

An ESOP is a qualified retirement plan where employees receive shares of the company that employs them, rather than savings accounts or investments in other companies such as in a 401(k). ESOPs are fully funded by the employer, and often times shares offered to employees are not voting shares, meaning control of the company stays with ownership and other executives. They offer fantastic incentives to employees while providing businesses with an enhanced value proposition to employees, and allow business owners to set up a succession plan while maintaining control. When they retire, most employees sell the stock at market value.

Perhaps even more importantly, by handing over part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to spread out the tax consequences of the sale instead of having to pay taxes immediately. In many cases, ESOPs are a succession plan that keeps the most amount of money achievable with the owner.

Benefits of an Employee Stock Ownership Plan

  • Sell a portion of your business (minimum 30%) with deferment of capital gains taxes (provided you reinvest into qualified replacement securities)
  • Extra tax deductions through contributions made to employees
  • If the business is eventually 100% owned as an S-Corp by the ESOP, it's not subject to federal income taxes
  • Align the goals of employees and stockholders
  • Present a higher value proposition when hiring
  • Enhance employee motivation and productivity
  • Boost employee retention and loyalty
  • Ease succession planning and business continuity
  • Retain control while arranging or easing into retirement
  • Amplify personal liquidity of owners, but still keep control of the company
  • Carry on your business' legacy and culture

What About KSOPs?

A KSOP is a tax-advantaged plan that is a mix between an ESOP and a 401(k). Ownership shares are provided to employees as in an ESOP, employees can add their own money to obtain additional shares through payroll deductions, or the company can match employee contributions with stock instead of cash.

Setting up a stock ownership plan doesn't have to exclude your employees from more diverse investments. In fact, including an ESOP or KSOP to a more traditional retirement plan allows you to attain the benefits of both. The experienced Arnold, MO ESOP advisors and retirement consultants of Correct Capital can help you find the right plans for your business.

What Our Arnold, MO ESOP Advisors Do for You

Whether you're motivated by a succession plan, employee incentives, or any other of ESOPs' benefits, you'll need a knowledgeable Arnold, MO ESOP advisory firm in your corner to reap the most benefits of your plan. When you work with Correct Capital, we:

  • Lower your tax liability as much as possible — When you sell your ownership shares to an ESOP, you can reinvest the proceeds in other securities to postpone capital gains taxes on the sales, permitting you to retain more of the sales proceeds for various purposes. To postpone capital gains taxes, your ESOP advisor can help you execute a Section 1042 exchange by selling at least 30% of your company to the ESOP and reinvesting that money in qualified replacement securities or QRP. Taxes would be payable until the taxpayer has a sale of the QRP. An ESOP advisor can ensure you obtain the most tax benefit from your ESOP.
  • Personalize your ESOP and retirement plans — Along with your team, we'll create and set up an ESOP suited specifically to you and your company. We like to challenge ourselves and our clients to get creative with retirement plan offerings to maximize the advantages they offer. We'll assess your needs, evaluate various ESOP options, and propose a personalized ESOP that meets legal requirements and is aimed at maximizing benefits. If it makes sense, we may also recommend combining an ESOP with a 401(k) or other retirement plans to further boost benefits, yet retain efficiencies.
  • Conduct a ESOP feasibility study — When we first meet with our clients, we work to comprehend their needs and collaborate with them to identify the best qualified retirement plans for their company. For clients looking at an ESOP, part of that means conducting a feasibility analysis to establish if it's a feasible option for your company. We'll look at:
    • Cash flow, debts, and overall financial health
    • Ownership structure to understand how it'll be affected by introducing an ESOP
    • Employee demographics to understand how they're best served
    • Tax implications for both your company and shareholders
    • Company culture and employee engagement to determine if an ESOP is likely to be well-received and supported

    What if your business isn't a great fit for an ESOP? We'll collaborate with you to find a retirement or succession plan that works for you.

  • Connect you with valuation firms and trustees — Implementing and maintaining an ESOP involves a lot of moving parts, including accountants, lawyers, and a trustee to acquire stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Arnold, MO can help you set up your ESOP team with reliable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations for the administration of employee stock ownership plans. For example, when ESOP participants at a closely held employer receive company stock in an ESOP distribution, they have the right to require the employer to redeem them at market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on duration of service. Usually, that means ownership of the company is passed to the ESOP in stages. Depending on how you structure your company and the plan, your ESOP may start with 30%, but could ultimately achieve 100% ownership. As the plan progresses and matures, so will its impact on your company. ESOP advisors can plan for these changes and adapt to them in real time, facilitating your plan to stay viable, in accordance with regulations, and profitable.
  • Employee communication and education — Our ESOP advisors offer collective workshops and one-on-one meetings with your employees so they can maximize the benefits from your employee stock ownership plan. With an ESOP advisor from Correct Capital, your employees won't just acquire a portion of your company, but they'll feel like they're gaining ownership of their economic well-being and future.

Why Choose Correct Capital as Your ESOP Advisor in Arnold, MO

Correct Capital is an independent advisory firm that specializes in helping business owners create retirement plans and succession plans for their companies. There are numerous factors we point to that distinguish us from other investment advisory agencies in Arnold, MO, and all over the nation:

  • We're experienced in retirement plans and ESOPs. Correct Capital's clients currently operate these plans in a variety of sectors, including for construction companies and contractors. As we work with both businesses and individuals and families when managing retirement plans, we're ideally suited to understand the requirements of each and establish a plan that meets the needs of both, as well as those of your stockholders.
  • As independent fiduciary advisors, we are lawfully and ethically bound to do what's in the optimal interest of you, your employees, and your company. We endeavor to forge long-term relationships with our clients based on trust and the common goal of expanding your and your employees' wealth.

Other services we offer in Arnold, MO:

ESOP Advisor in Arnold, MO | Retirement Consultants | Financial Advisors Near Arnold

Call Correct Capital to Speak With an ESOP Advisor in Arnold, MO Today

If you're interested in learning more about ESOPs or wish to commence the process of setting one up for your Arnold, MO business, contact a Correct Capital ESOP advisor now. Let us do what we do best so you can focus on what you care about most: positioning yourself, your business, and your employees up for achievement. Contact with one of our Arnold, MO ESOP advisors today at 877-930-4015 or contact us online.


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