ESOP Advisor in Belleville, IL

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ESOP advisor in Belleville, IL. Employee stock ownership plans (ESOPs) have become an increasingly common retirement benefit for employees in a variety of sectors in Belleville, IL. They offer business owners an opportunity to pass the torch from their company while greatly reducing taxes on the sale, and offer employees a tax-advantaged retirement plan that builds their productivity and motivation. However, designing, implementing, and maintaining an ESOP isn't something most Belleville, IL business owners can do alone. Correct Capital's proficient and savvy ESOP advisors help businesses of all sizes, in Belleville, IL and around the nation, create tailored retirement plans that benefit themselves, their employees, and their revenue.

If you're looking for an experienced financial partner in Belleville, IL 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 today.


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What Is an Employee Stock Ownership Plan (ESOP)?

An ESOP is a qualified retirement plan where employees receive stock of the company they work for, rather than savings accounts or investments in other companies such as in a 401(k). ESOPs are 100% company funded, and often times shares offered to employees are not governing shares, meaning control of the company stays with the C-suite. They offer great 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.

Of special interest to business owners, by handing over part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to disperse 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 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)
  • Additional tax deductions through contributions made to employees
  • If the business is one day 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
  • Simplify succession planning and business continuity
  • Keep control while preparing or easing into retirement
  • Boost personal liquidity of owners, but still hold on to control of the company
  • Carry on your business' legacy and culture

What About KSOPs?

A KSOP is a qualified plan that is a combination of an ESOP and a 401(k). Ownership shares are extended to employees as in an ESOP, employees can put in their own money to obtain 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, introducing an ESOP or KSOP to a more traditional retirement plan allows you to get the benefits of both. The experienced Belleville, IL ESOP advisors and retirement consultants of Correct Capital can support you find the right plans for your business.

What Our Belleville, IL 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 Belleville, IL ESOP advisory firm in your corner 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 transfer your ownership shares to an ESOP, you can reinvest the proceeds in different securities to postpone capital gains taxes on the sales, allowing you to keep 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 assure you get the most tax benefit from your ESOP.
  • Personalize your ESOP and retirement plans — Along with your team, we'll develop and execute an ESOP suited specifically to you and your company. We like to push ourselves and our clients to get innovative with retirement plan offerings to maximize the advantages they provide. We'll assess your needs, evaluate different ESOP options, and suggest a personalized ESOP that meets legal requirements and is aimed at optimizing benefits. If we believe it'll work, we may also suggest combining an ESOP with a 401(k) or alternative retirement plans to additionally augment benefits, yet retain efficiencies.
  • Conduct a ESOP feasibility study — When we first meet with our clients, we work to understand their needs and collaborate with them to discover the best qualified retirement plans for their business. For clients looking at an ESOP, part of that means conducting a feasibility analysis to determine if it's a feasible option for your company. We'll examine:
    • Cash flow, debts, and overall financial health
    • Ownership structure to understand the implications of introducing an ESOP
    • Employee demographics to understand what they need from their retirement plan
    • Tax implications for both your company and shareholders
    • Company culture and employee engagement to assess 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 work 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 buy stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Belleville, IL can help you establish your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations 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 option to ask for the employer to buy back them at current market price.
  • 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 phases. 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 develops 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 feasible, in accordance with regulations, and beneficial.
  • 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 ESOP. With an ESOP advisor from Correct Capital, your employees won't just attain a share of your company, but they'll feel like they're achieving ownership of their financial health and future.

Why Choose Correct Capital as Your ESOP Advisor in Belleville, IL

Correct Capital is an independent advisory firm that specializes in assisting business owners create retirement plans and succession plans for their businesses. There are several factors we believe distinguish us from other financial advisory firms in Belleville, IL, and throughout 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 develop a plan that fulfills the requirements of both, as well as those of your stockholders.
  • As independent fiduciary advisors, we are legally and morally bound to do what's in the utmost benefit of you, your employees, and your company. We endeavor to forge long-term relationships with our clients grounded in trust and the common goal of expanding your and your employees' wealth.

Other services we offer in Belleville, IL:

ESOP Advisor in Belleville, IL | Retirement Consultants | Financial Advisors Near Belleville

Call Correct Capital to Speak With an ESOP Advisor in Belleville, IL Today

If you're interested in learning more about ESOPs or desire to initiate the process of setting one up for your Belleville, IL business, reach out to a Correct Capital ESOP advisor today. Let us do what we do best so you can focus on what you value most: setting yourself, your business, and your employees up for prosperity. Get in touch with one of our Belleville, IL ESOP advisors today at 877-930-4015 or contact us online.


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