ESOP Advisor in Columbia, IL

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ESOP advisor in Columbia, IL. Employee stock ownership plans (ESOPs) have become an increasingly well-liked retirement benefit for employees in various industries in Columbia, IL. They offer business owners an opportunity to transition from their company while considerably reducing taxes on the sale, and offer employees a tax-advantaged retirement plan that builds their investment in your company. However, designing, implementing, and maintaining an ESOP isn't something most Columbia, IL business owners can do by themselves. Correct Capital's proficient and savvy ESOP advisors help businesses of all sizes, in Columbia, IL and around the country, develop tailored retirement plans that benefit themselves, their employees, and their profit.

If you're in search of an experienced financial partner in Columbia, IL who shares your goals of establishing your company and employees for long-term success, call Correct Capital at 877-930-4015, contact us online, or schedule an appointment with one of our financial advisors immediately.


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About Employee Stock Ownership Plans (ESOPs)

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 as in a typical retirement plan. ESOPs are 100% company funded, and often times shares offered to employees are not decision-making shares, meaning control of the company stays with the C-suite. They offer great incentives to employees while providing businesses with a superior value proposition in the hiring process, and allow business owners to set up a succession plan while preserving control. Upon reaching retirement, most employees sell the stock at stock market value.

Perhaps most importantly, by handing over part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to disperse that tax hit instead of being required to pay taxes promptly. In many cases, ESOPs are a succession 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)
  • Extra 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
  • Boost employee motivation and productivity
  • Enhance employee retention and loyalty
  • Facilitate succession planning and business continuity
  • Keep control while planning or easing into retirement
  • Increase personal liquidity of owners, but still retain control of the company
  • Carry on your business' legacy and culture

What About KSOPs?

A KSOP is a qualified plan that is a mix between an ESOP and a 401(k). Ownership shares are extended to employees as in an ESOP, employees can contribute 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 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 Columbia, IL ESOP advisors and retirement consultants of Correct Capital can assist you find the best retirement plan for you, your company, and your employees.

How Our Columbia, IL 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 Columbia, IL ESOP advisory firm by your side 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 have the option to reinvest the proceeds in alternative securities to postpone capital gains taxes on the sales, allowing you to retain more of the sales proceeds for various 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 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 assure you get the most tax benefit from your ESOP.
  • Customize 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 challenge ourselves and our clients to get innovative with retirement plan offerings to maximize the benefits they provide. We'll assess your needs, analyze various ESOP options, and propose a customized ESOP that meets legal requirements and is aimed at optimizing benefits. If we believe it'll work, we may also recommend combining an ESOP with a 401(k) or different 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 collaborate with them to discover the optimal tax-advantaged retirement plans for their business. For clients looking at an ESOP, part of that means performing a feasibility analysis to establish if it's a feasible 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 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 CPAs, attorneys, and a trustee to buy stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Columbia, IL can help you arrange your ESOP team with reliable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations for the oversight of retirement plans. 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 market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on how long they've worked there. Most of the time, 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 develops and matures, so will its impact on your company. ESOP advisors can plan for these changes and adapt to them in real time, allowing your plan to stay workable, compliant, and profitable.
  • Employee communication and education — Our ESOP advisors offer group sessions and one-on-one meetings with your employees so they can maximize the benefits from your ESOP. With an ESOP advisor from Correct Capital, your employees won't just get a portion of your company, but they'll feel like they're achieving ownership of their financial stability and future.

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

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 believe set us apart from other financial consulting companies in Columbia, IL, 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 know retirement plans and ESOPs. Correct Capital's clients currently operate these plans in a variety of industries, including for construction companies and contractors. As we work with both businesses and individuals and families when managing retirement plans, we're well-prepared to understand the needs of each and develop a plan that meets the requirements of both, as well as those of your stockholders.
  • Our award-winning Columbia, IL financial advisory team is composed 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 effectively cater to each client individually.
  • As independent fiduciary advisors, we are legally and morally bound to do what's in the optimal interest of you, your employees, and your company. We strive to forge long-term relationships with our clients based on trust and the shared goal of expanding your and your employees' financial prosperity.

Other services we offer in Columbia, IL:

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

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

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


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