ESOP advisor in Eureka, MO. Employee stock ownership plans (ESOPs) are becoming a more and more popular retirement benefit for employees in various industries in Eureka, MO. They offer business owners a chance to exit their company while greatly 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 Eureka, MO business owners can do without professional help. Correct Capital's proficient and savvy ESOP advisors help businesses of all sizes, in Eureka, MO and around the U.S., create tailored retirement plans that benefit themselves, their employees, and their bottom line.

If you're seeking an experienced financial partner in Eureka, MO who shares your goals of building your company and employees for sustained success, call Correct Capital at 877-930-4015, contact us online, or schedule a consultation with one of our financial advisors at this moment.


Schedule a Meeting With an Advisor Today

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.

Schedule a 15-Minute Introductory Call


About Employee Stock Ownership Plans (ESOPs)

An ESOP is a tax-advantaged retirement plan where employees receive shares of the company they work for, rather than savings 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 superb incentives to employees while providing businesses with an enhanced 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 marketplace 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 needing to pay taxes promptly. In many cases, ESOPs are a succession plan that keeps the most amount of money attainable 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 eventually 100% owned as an S-Corp by the ESOP, it's not subject to federal income taxes
  • Align the goals of employees and stockholders
  • Provide a higher value proposition when hiring
  • Boost employee motivation and productivity
  • Enhance employee retention and loyalty
  • Enable succession planning and business continuity
  • Keep control while arranging or easing into retirement
  • Raise personal liquidity of owners, but still keep control of the company
  • Preserve your business' legacy and culture

What About KSOPs?

A KSOP is a tax-advantaged plan that is a combination of an ESOP and a 401(k). Ownership shares are provided to employees as in an ESOP, employees can contribute their own money to buy 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, including an ESOP or KSOP to a more traditional retirement plan allows you to attain the benefits of both. The experienced Eureka, MO ESOP advisors and retirement consultants of Correct Capital can aid you find the best retirement plan for you, your company, and your employees.

What Our Eureka, MO ESOP Advisors Do for You

Whether you're motivated by a succession plan, employee incentives, or any other of ESOPs' benefits, you'll need an experienced Eureka, MO ESOP advisory firm to partner with to get the most out 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 other securities to defer capital gains taxes on the sales, permitting you to retain more of the profit. To defer capital gains taxes, your ESOP advisor can help you perform 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 disposition of the QRP. An ESOP advisor can ensure you get the most tax benefit from your ESOP.
  • Personalize your ESOP and retirement plans — Along with your team, we'll create and set up an ESOP that works best for you and your one-of-a-kind company. We like to challenge ourselves and our clients to get creative with retirement plan offerings to maximize the advantages they provide. We'll assess your needs, evaluate several ESOP options, and suggest a tailored ESOP that meets legal requirements and is aimed at optimizing benefits. If we believe it's a good idea, we may also recommend combining an ESOP with a 401(k) or other retirement plans to additionally boost benefits, yet retain efficiencies.
  • Conduct a ESOP feasibility study — When we first meet with our clients, we work to comprehend their needs and work together with them to identify the best qualified retirement plans for their company. For clients looking at an ESOP, part of that means conducting a feasibility analysis to determine if it's a workable 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 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 CPAs, lawyers, and a trustee to acquire stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Eureka, MO can help you arrange your ESOP team with trusted partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict guidelines for the oversight of employee stock ownership 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 demand the employer to redeem them at market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on seniority of service. Most of the time, that means ownership of the company is passed to the ESOP in stages. 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 react to them in real time, enabling your plan to stay feasible, compliant, and advantageous.
  • Employee communication and education — Our ESOP advisors offer collective workshops and one-on-one meetings with your employees so they can optimize the advantages from your employee stock ownership plan. 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 obtaining ownership of their financial stability and future.

Why Choose Correct Capital as Your ESOP Advisor in Eureka, 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 several factors we point to that distinguish us from other investment advisory agencies in Eureka, 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 when managing retirement plans, we're ideally suited to understand the needs of each and create a plan that meets the needs of both, as well as those of your stockholders.
  • Our award-winning Eureka, MO financial advisory team is composed of a diverse 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 optimally assist 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 aim to establish long-term relationships with our clients based on trust and the mutual goal of expanding your and your employees' financial prosperity.

Other services we offer in Eureka, MO:

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

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

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


Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer