ESOP Advisor in Millstadt, IL

Complimentary Planning By Elements

ESOP advisor in Millstadt, IL. Employee stock ownership plans (ESOPs) have become an increasingly popular retirement benefit for employees in various industries in Millstadt, IL. They offer business owners an opportunity to exit their company while greatly 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 Millstadt, IL business owners can do alone. Correct Capital's seasoned and savvy ESOP advisors help businesses of all sizes, in Millstadt, IL and around the U.S., establish tailored retirement plans that benefit themselves, their employees, and their revenue.

If you're seeking a trustworthy financial partner in Millstadt, IL who shares your goals of building 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 now.


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


More From Correct Capital Wealth Management

Explore how Correct Capital Wealth Management can help guide you toward smarter decisions, clearer goals, and lasting financial success.

Subscribe To Our Newsletter Listen To Our Podcast Watch Our YouTube Channel


About Employee Stock Ownership Plans (ESOPs)

An ESOP is a qualified 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 fully funded by the employer, 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 a better value proposition in the hiring process, and allow business owners to set up a succession plan while maintaining control. When they retire, 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 spread out the tax consequences of the sale instead of being required to pay taxes at once. In many cases, ESOPs are a transition plan that keeps the most amount of money feasible 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 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
  • Enhance employee motivation and productivity
  • Enhance employee retention and loyalty
  • Enable succession planning and business continuity
  • Maintain control while arranging or easing into retirement
  • Boost personal liquidity of owners, but still hold on to control of the company
  • Carry on 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 provided to employees as in an ESOP, employees can deposit their own money to acquire additional stock 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, introducing an ESOP or KSOP to a more traditional retirement plan allows you to attain the benefits of both. The experienced Millstadt, IL ESOP advisors and retirement consultants of Correct Capital can aid you find the best retirement plan for you, your business, and your employees.

What Our Millstadt, IL ESOP Advisors Do for You

Whether you're stepping from control of your company or are interested in an ESOP's other benefits, you'll need a knowledgeable Millstadt, IL 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 transfer your ownership shares to an ESOP, you have the option to reinvest the proceeds in alternative securities to defer capital gains taxes on the sales, allowing you to keep more of the profit. 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 that money in qualified replacement securities or QRP. Taxes would be owed until the taxpayer has a disposition 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 create and implement an ESOP that works best for you and your distinctive company. We like to challenge ourselves and our clients to get innovative with retirement plan offerings to enhance the advantages they offer. We'll assess your needs, analyze different ESOP options, and propose a tailored ESOP that meets legal requirements and is aimed at maximizing benefits. If we believe it's a good idea, we may also advise combining an ESOP with a 401(k) or other retirement plans to further boost 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 find the optimal tax-advantaged retirement plans for their company. For clients looking at an ESOP, part of that means conducting a feasibility analysis to ascertain 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 see 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 Millstadt, IL can help you arrange your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict guidelines for the oversight of employee stock ownership plans. For example, when employees participating in an ESOP at a closely held employer receive company stock in an ESOP distribution, they have the option to ask for the employer to repurchase them at current market price.
  • 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 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 evolves and matures, so will its impact on your company. ESOP advisors can plan for these changes and react to them in real time, allowing your plan to stay feasible, in accordance with regulations, and advantageous.
  • Employee communication and education — Our ESOP advisors offer group sessions and individual consultations with your employees so they can get the most from your ESOP. With an ESOP advisor from Correct Capital, your employees won't just attain partial ownership of your company, but they'll feel like they're gaining ownership of their financial health and eventual retirement.

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

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

  • We know 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 support in setting up retirement plans, we're perfectly positioned to understand the demands of each and create a plan that fulfills the needs of both, as well as those of your stockholders.
  • As independent fiduciary advisors, we are legally and ethically bound to do what's in the optimal interest of you, your employees, and your company. We aim to establish long-term relationships with our clients based on trust and the shared goal of growing your and your employees' financial prosperity.

Other services we offer in Millstadt, IL:

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

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

If you're interested in learning more about ESOPs or aspire to initiate the process of setting one up for your Millstadt, IL business, contact a Correct Capital ESOP advisor at this moment. Let us do what we do best so you can concentrate on what you value most: positioning yourself, your business, and your employees up for achievement. Reach out with one of our Millstadt, IL 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