ESOP Advisor in Ballwin, MO

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ESOP advisor in Ballwin, MO. Employee stock ownership plans (ESOPs) are becoming a more and more well-liked retirement benefit for employees in a variety of sectors in Ballwin, MO. They offer business owners an opportunity to pass the torch from their company while considerably 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 Ballwin, MO business owners can do without professional help. Correct Capital's knowledgeable and savvy ESOP advisors help businesses of all sizes, in Ballwin, MO and around the U.S., create tailored retirement plans that benefit themselves, their employees, and their profit.

If you're seeking an experienced financial partner in Ballwin, MO who shares your goals of building your company and employees for enduring success, call Correct Capital at 877-930-4015, contact us online, or schedule a consultation with one of our financial advisors now.


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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.

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What Is an Employee Stock Ownership Plan (ESOP)?

An ESOP is a qualified retirement plan where employees receive shares of the company they work for, rather than savings 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 governing shares, meaning control of the company stays with the C-suite. They offer fantastic incentives to employees while providing businesses with an enhanced value proposition in the hiring process, and allow business owners to set up a succession plan while maintaining control. Upon reaching retirement, most employees sell the stock at marketplace value.

Of special interest to business owners, by transferring part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to allocate that tax hit instead of being required to pay taxes immediately. In many cases, ESOPs are a transition plan that keeps the most amount of money possible 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)
  • Further 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
  • Provide a higher value proposition when hiring
  • Improve employee motivation and productivity
  • Boost employee retention and loyalty
  • Ease succession planning and business continuity
  • Retain control while planning or easing into retirement
  • Increase personal liquidity of owners, but still retain control of the company
  • Preserve your business' legacy and culture

What About KSOPs?

A KSOP is a tax-advantaged plan that is a combination of an ESOP and a 401(k). Ownership shares are offered to employees as in an ESOP, employees can add their own money to purchase additional shares through payroll deductions, or the company can match employee contributions with shares rather than cash.

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

How Our Ballwin, MO ESOP Advisors Can Help

Whether you're motivated by a succession plan, employee incentives, or any other of ESOPs' benefits, you'll need an experienced Ballwin, MO ESOP advisory firm to partner with to get the most out of your plan. When you work with Correct Capital, we:

  • Minimize your tax liability as much as possible — When you sell your ownership shares to an ESOP, you have the option to reinvest the proceeds in alternative securities to postpone capital gains taxes on the sales, permitting you to retain more of the sales proceeds for different purposes. To postpone capital gains taxes, your ESOP advisor can help you carry out 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 disposition of the QRP. An ESOP advisor can ensure you receive the most tax benefit from your ESOP.
  • Customize your ESOP and retirement plans — Along with your team, we'll design and execute an ESOP that works best for you and your unique company. We like to challenge ourselves and our clients to get creative with retirement plan offerings to enhance the advantages they offer. We'll assess your needs, analyze different ESOP options, and suggest a customized ESOP that meets legal requirements and is aimed at maximizing benefits. If it makes sense, we may also advise combining an ESOP with a 401(k) or different retirement plans to further boost benefits, without sacrificing efficiencies.
  • Conduct a ESOP feasibility study — When we first meet with our clients, we work to grasp their needs and work together with them to identify the best tax-advantaged retirement plans for their business. For clients interested in an ESOP, part of that means carrying out a feasibility analysis to determine if it's a workable option for your company. We'll analyze:
    • 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 Ballwin, MO can help you set up your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict guidelines for the management of ESOPs. For instance, when ESOP participants at a closely held employer receive company stock in an ESOP distribution, they have the right to require the employer to repurchase them at fair market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on length of service. Usually, that means ownership of the company is passed to the ESOP in increments. 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 respond to them in real time, enabling your plan to stay workable, in accordance with regulations, and advantageous.
  • Employee communication and education — Our ESOP advisors offer group sessions and one-on-one meetings with your employees so they can optimize the advantages from your employee stock ownership plan. With an ESOP advisor from Correct Capital, your employees won't just get partial ownership of your company, but they'll feel like they're achieving ownership of their financial health and eventual retirement.

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

Correct Capital is an independent advisory firm that specializes in helping business owners create retirement plans and succession plans for their businesses. There are numerous factors we point to that set us apart from other investment advisory agencies in Ballwin, MO, and across the country:

  • 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 perfectly positioned to understand the demands of each and establish a plan that satisfies the needs of both, as well as those of your stockholders.
  • As independent fiduciary advisors, we are legally and ethically bound to do what's in the best interest of you, your employees, and your company. We strive to form long-term relationships with our clients grounded in trust and the common goal of growing your and your employees' financial prosperity.

Other services we offer in Ballwin, MO:

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

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

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


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