ESOP Advisor in Clarkson Valley, MO

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ESOP advisor in Clarkson Valley, MO. Employee stock ownership plans (ESOPs) are becoming a more and more well-liked retirement plan for employees in a variety of sectors in Clarkson Valley, MO. They offer business owners an opportunity to step away from their company while significantly reducing taxes on the sale, and offer employees a tax-advantaged retirement plan that increases their investment in your company. However, designing, implementing, and maintaining an ESOP isn't something most Clarkson Valley, MO business owners can do by themselves. Correct Capital's knowledgeable and savvy ESOP advisors help businesses of all sizes, in Clarkson Valley, MO and around the United States, establish tailored retirement plans that benefit themselves, their employees, and their revenue.

If you're looking for an experienced financial partner in Clarkson Valley, MO who shares your goals of establishing 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 funds or investments in other companies as in a typical retirement plan. ESOPs are fully funded by the employer, and often times shares offered to employees are not controlling shares, meaning control of the company stays with the C-suite. They offer superb 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. Upon reaching retirement, most employees sell the stock at marketplace value.

Of special interest to business owners, by selling part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to distribute the tax consequences of the sale instead of having to pay taxes at once. In many cases, ESOPs are a transition plan that keeps the most amount of money achievable in your pocket.

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 one day 100% owned as an S-Corp by the ESOP, it's free from federal income taxes
  • Align the goals of employees and stockholders
  • Present a higher value proposition when hiring
  • Increase employee motivation and productivity
  • Boost employee retention and loyalty
  • Simplify succession planning and business continuity
  • Maintain control while organizing or easing into retirement
  • Boost personal liquidity of owners, but still retain control of the company
  • Preserve your business' legacy and culture

What About KSOPs?

A KSOP is a similar type of plan that is a combination of an ESOP and a 401(k). Ownership shares are provided to employees as in an ESOP, employees can deposit their own money to obtain additional shares through payroll deductions, or the company can match employee contributions with stock rather than cash.

Setting up a stock ownership plan doesn't have to exclude your employees from the risk tolerance that comes with diverse investments. In fact, including an ESOP or KSOP to a more traditional retirement plan allows you to get the benefits of both. The experienced Clarkson Valley, MO ESOP advisors and retirement consultants of Correct Capital can aid you find the best retirement plan for you, your company, and your employees.

How Our Clarkson Valley, MO ESOP Advisors Can Help

Whether you're stepping from ownership of your company or are interested in an ESOP's other benefits, you'll need a knowledgeable Clarkson Valley, MO ESOP advisory firm to partner with 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 alternative securities to defer capital gains taxes on the sales, allowing you to retain more of the profit. To defer 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 disposition 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 design and set up an ESOP suited specifically to you and your company. We like to push ourselves and our clients to get creative with retirement plan offerings to maximize the advantages they offer. We'll assess your needs, assess several ESOP options, and suggest a tailored ESOP that meets legal requirements and is aimed at optimizing benefits. If we believe it'll work, we may also advise combining an ESOP with a 401(k) or alternative retirement plans to further increase benefits, yet retain 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 optimal qualified retirement plans for their business. For clients interested in an ESOP, part of that means conducting a feasibility analysis to establish if it's a viable 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 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 Clarkson Valley, MO can help you establish your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict guidelines for the oversight of retirement plans. For instance, when individuals enrolled in an employee stock ownership plan 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 sold 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 progresses and matures, so will its impact on your company. ESOP advisors can plan for these changes and respond to them in real time, allowing your plan to stay feasible, in accordance with regulations, and profitable.
  • Employee communication and education — Our ESOP advisors offer group meetings 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 financial health and future.

Why Choose Correct Capital as Your ESOP Advisor in Clarkson Valley, MO

Correct Capital is an independent advisory firm that specializes in assisting business owners establish retirement plans and succession plans for their enterprises. There are several factors we point to that set us apart from other financial consulting companies in Clarkson Valley, MO, and across the nation:

  • A member of the National Association of Plan Advisors (NAPA), Correct Capital was recently named one of their Top Defined Contribution (DC) Teams with Assets under Advisement of at least $100 million. Correct Capital is the only advisory firm in Missouri to achieve this distinction.
  • We're experienced in retirement plans and ESOPs. Correct Capital's clients currently operate these plans in a range of sectors, including for construction companies and contractors. As we work with both businesses and individuals and families to assist in setting up retirement plans, we're well-prepared to understand the requirements of each and establish a plan that fulfills the needs of both, as well as those of your stockholders.
  • Our award-winning Clarkson Valley, MO financial advisory team is made up of a wide range of financial expertise, including an Accredited Investment Fiduciary®, multiple CERTIFIED FINANCIAL PLANNER™ professionals, a certified public accountant, and a six-time Barron's Top 1200 Advisor. With over 80 years of combined experience, we pool our collective talents and insights to best serve each client individually.
  • 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 strive to establish long-term relationships with our clients founded on trust and the mutual goal of expanding your and your employees' wealth.

Other services we offer in Clarkson Valley, MO:

ESOP Advisor in Clarkson Valley, MO | Retirement Consultants | Financial Advisors Near Clarkson Valley

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

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


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