ESOP Advisor in Lake St. Louis, MO

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ESOP advisor in Lake St. Louis, MO. Employee stock ownership plans (ESOPs) have become an increasingly well-liked retirement benefit for employees in a variety of sectors in Lake St. Louis, MO. They offer business owners a chance to move on from their company while considerably 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 Lake St. Louis, MO business owners can do by themselves. Correct Capital's proficient and savvy ESOP advisors help businesses of all sizes, in Lake St. Louis, MO and around the U.S., design tailored retirement plans that benefit themselves, their employees, and their profit.

If you're in search of an experienced financial partner in Lake St. Louis, MO who shares your goals of setting up 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 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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What Is an Employee Stock Ownership Plan (ESOP)?

An ESOP is a tax-advantaged retirement plan where employees receive stock of the company they work for, rather than savings accounts 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 governing shares, meaning control of the company stays with ownership and other executives. They offer excellent incentives to employees while providing businesses with an enhanced value proposition to employees, and allow business owners to set up a succession plan while preserving control. When they retire, most employees sell the stock at stock market value.

Of special interest to business owners, by transferring part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to spread out that tax hit instead of needing to pay taxes at once. In many cases, ESOPs are a transition 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)
  • Further tax deductions through contributions made to employees
  • If the business is eventually 100% owned as an S-Corp by the ESOP, it's exempt from federal income taxes
  • Align the goals of employees and stockholders
  • Provide a higher value proposition when hiring
  • Improve employee motivation and productivity
  • Improve employee retention and loyalty
  • Facilitate succession planning and business continuity
  • Maintain control while arranging or easing into retirement
  • Amplify 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 put in their own money to acquire additional shares through payroll deductions, or the company can match employee contributions with shares 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 attain the benefits of both. The experienced Lake St. Louis, MO ESOP advisors and retirement consultants of Correct Capital can help you find the right plans for your business.

What Our Lake St. Louis, 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 a knowledgeable Lake St. Louis, MO ESOP advisory firm in your corner to reap the most benefits 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 have the option to reinvest the proceeds in different securities to postpone capital gains taxes on the sales, permitting you to retain more of the sales proceeds for various purposes. To defer 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 ensure you get the most tax benefit from your ESOP.
  • Customize your ESOP and retirement plans — Along with your team, we'll develop and execute an ESOP suited specifically to you and your company. We like to challenge ourselves and our clients to get imaginative with retirement plan offerings to optimize the benefits they provide. We'll evaluate your needs, analyze various ESOP options, and propose a tailored ESOP that meets legal requirements and is aimed at optimizing benefits. If we believe it'll work, we may also suggest combining an ESOP with a 401(k) or different retirement plans to additionally augment 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 find the optimal qualified retirement plans for their business. For clients looking at an ESOP, part of that means conducting a feasibility analysis to determine if it's a feasible option for your company. We'll look at:
    • Cash flow, debts, and overall financial health
    • Ownership structure to understand the implications of 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 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 CPAs, lawyers, and a trustee to purchase stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Lake St. Louis, MO can help you arrange your ESOP team with reliable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict guidelines for the oversight of ESOPs. 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 repurchase them at fair market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on seniority of service. Usually, that means ownership of the company is sold 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 progresses and matures, so will its implications for your company. ESOP advisors can plan for these changes and adapt to them in real time, facilitating your plan to stay workable, compliant, and beneficial.
  • Employee communication and education — Our ESOP advisors offer collective workshops 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 attain a portion of your company, but they'll feel like they're achieving ownership of their financial health and future.

Why Choose Correct Capital as Your ESOP Advisor in Lake St. Louis, MO

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 point to that make us unique from other financial advisory firms in Lake St. Louis, MO, and throughout the U.S.:

  • 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 to aid in setting up retirement plans, we're well-prepared to understand the needs of each and develop a plan that fulfills the necessities of both, as well as those of your stockholders.
  • Our award-winning Lake St. Louis, MO financial advisory team is made up 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 eight decades of combined experience, we pool our collective talents and insights to optimally assist each client individually.
  • As independent fiduciary advisors, we are lawfully and ethically bound to do what's in the best interest of you, your employees, and your company. We endeavor to forge long-term relationships with our clients based on trust and the shared goal of increasing your and your employees' monetary well-being.

Other services we offer in Lake St. Louis, MO:

ESOP Advisor in Lake St. Louis, MO | Retirement Consultants | Financial Advisors Near Lake St. Louis

Call Correct Capital to Speak With an ESOP Advisor in Lake St. Louis, MO Today

If you're interested in learning more about ESOPs or wish to commence the process of setting one up for your Lake St. Louis, 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 care about most: setting yourself, your business, and your employees up for achievement. Contact with one of our Lake St. Louis, MO ESOP advisors today at 877-930-4015 or contact us online.


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