ESOP Advisor in Ellisville, MO

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ESOP advisor in Ellisville, MO. Employee stock ownership plans (ESOPs) are becoming a more and more popular retirement benefit for employees in a variety of sectors in Ellisville, MO. They offer business owners an opportunity to pass the torch from their company while significantly reducing taxes on the sale, and offer employees a tax-advantaged retirement plan that increases their productivity and motivation. However, designing, implementing, and maintaining an ESOP isn't something most Ellisville, MO business owners can do by themselves. Correct Capital's seasoned and savvy ESOP advisors help businesses of all sizes, in Ellisville, MO and around the U.S., create tailored retirement plans that benefit themselves, their employees, and their bottom line.

If you're in search of an experienced financial partner in Ellisville, 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 an appointment with one of our financial advisors at this moment.


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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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About Employee Stock Ownership Plans (ESOPs)

An ESOP is a tax-advantaged retirement plan where employees receive stock 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 decision-making shares, meaning control of the company stays with the C-suite. They offer superb incentives to employees while providing businesses with a better 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 stock 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 that tax hit instead of being required 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 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
  • Provide a higher value proposition when hiring
  • Increase employee motivation and productivity
  • Boost employee retention and loyalty
  • Simplify succession planning and business continuity
  • Retain control while organizing or easing into retirement
  • Amplify personal liquidity of owners, but still keep 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 extended to employees as in an ESOP, employees can contribute their own money to buy additional stock through payroll deductions, or the company can match employee contributions with stock 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 obtain the benefits of both. The experienced Ellisville, MO ESOP advisors and retirement consultants of Correct Capital can help you find the best retirement plan for you, your business, and your employees.

How Our Ellisville, MO ESOP Advisors Can Help

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

  • Reduce 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 postpone capital gains taxes on the sales, permitting you to keep 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 the proceeds in qualified replacement securities or QRP. Taxes would be owed 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 develop and implement 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 benefits they provide. We'll examine your needs, evaluate several ESOP options, and propose a personalized 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 alternative retirement plans to further increase 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 find the best tax-advantaged 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 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 Ellisville, MO can help you set up your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations for the management 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 ask for the employer to redeem them at current market price.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on how long they've worked there. 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 evolves and matures, so will its implications for your company. ESOP advisors can plan for these changes and adapt 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 get the most from your employee stock ownership plan. With an ESOP advisor from Correct Capital, your employees won't just acquire partial ownership of your company, but they'll feel like they're gaining ownership of their economic well-being and eventual retirement.

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

Correct Capital is an independent advisory firm that specializes in assisting business owners arrange retirement plans and succession plans for their businesses. There are numerous factors we point to that set us apart from other financial consulting companies in Ellisville, MO, and across the country:

  • 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 industries, including for construction companies and contractors. As we work with both businesses and individuals and families to aid in setting up retirement plans, we're perfectly positioned to understand the demands of each and create a plan that satisfies the requirements of both, as well as those of your stockholders.
  • Our award-winning Ellisville, MO 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 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 form long-term relationships with our clients based on trust and the common goal of growing your and your employees' monetary well-being.

Other services we offer in Ellisville, MO:

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

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

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


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