ESOP Advisor in Clayton, MO

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ESOP advisor in Clayton, MO. Employee stock ownership plans (ESOPs) are becoming a more and more well-liked retirement plan for employees in various industries in Clayton, MO. They offer business owners a chance to exit their company while substantially reducing taxes on the sale, and offer employees a qualified retirement plan that builds their investment in your company. However, designing, implementing, and maintaining an ESOP isn't something most Clayton, MO business owners can do alone. Correct Capital's knowledgeable and savvy ESOP advisors help businesses of all sizes, in Clayton, MO and around the nation, design tailored retirement plans that benefit themselves, their employees, and their revenue.

If you're seeking an experienced financial partner in Clayton, MO who shares your goals of creating your company and employees for prolonged 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 tax-advantaged retirement plan where employees receive stock of the company that employs them, rather than savings accounts or investments in other companies as in a typical retirement plan. ESOPs are 100% company funded, 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 improved value proposition to employees, and allow business owners to set up a succession plan while retaining control. Upon reaching retirement, 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 promptly. In many cases, ESOPs are a transition 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 free from federal income taxes
  • Align the goals of employees and stockholders
  • Present a higher value proposition when hiring
  • Boost employee motivation and productivity
  • Boost employee retention and loyalty
  • Simplify succession planning and business continuity
  • Maintain control while organizing or easing into retirement
  • Increase personal liquidity of owners, but still hold on to control of the company
  • Preserve 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 offered 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 shares instead of 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 Clayton, MO ESOP advisors and retirement consultants of Correct Capital can help you find the right plans for your business.

How Our Clayton, MO ESOP Advisors Can Help

Whether you're stepping from control of your company or are interested in an ESOP's other benefits, you'll need a knowledgeable Clayton, MO 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 sell your ownership shares to an ESOP, you can reinvest the proceeds in other securities to defer capital gains taxes on the sales, permitting you to keep more of the profit. 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 the proceeds 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 get the most tax benefit from your ESOP.
  • Customize 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 push ourselves and our clients to get creative with retirement plan offerings to enhance the advantages they provide. We'll examine your needs, assess different ESOP options, and suggest a personalized ESOP that meets legal requirements and is aimed at maximizing benefits. If we believe it'll work, we may also advise combining an ESOP with a 401(k) or other retirement plans to additionally 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 best qualified retirement plans for their business. For clients looking at an ESOP, part of that means conducting a feasibility analysis to establish if it's a workable option for your company. We'll examine:
    • 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 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 partner 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, attorneys, and a trustee to acquire stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Clayton, MO 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 employee stock ownership plans. For example, when ESOP participants at a closely held employer receive company stock in an ESOP distribution, they have the option to require 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 workable, in accordance with regulations, and profitable.
  • Employee communication and education — Our ESOP advisors offer group sessions and individual consultations with your employees so they can optimize the advantages from your retirement plan. With an ESOP advisor from Correct Capital, your employees won't just attain a portion of your company, but they'll feel like they're achieving ownership of their economic well-being and future.

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

Correct Capital is an independent advisory firm that specializes in assisting business owners create retirement plans and succession plans for their businesses. There are multiple factors we point to that set us apart from other financial advisory firms in Clayton, 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 wide range 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 requirements of each and create a plan that satisfies the necessities of both, as well as those of your stockholders.
  • Our award-winning Clayton, 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 eight decades of combined experience, we pool our collective talents and insights to best serve each client distinctively.
  • As independent fiduciary advisors, we are lawfully and morally bound to do what's in the utmost benefit of you, your employees, and your company. We strive to forge long-term relationships with our clients grounded in trust and the shared goal of growing your and your employees' monetary well-being.

Other services we offer in Clayton, MO:

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

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

If you're interested in learning more about ESOPs or desire to initiate the process of setting one up for your Clayton, MO business, reach out to 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. Contact with one of our Clayton, MO ESOP advisors today at 877-930-4015 or contact us online.


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