ESOP Advisor in Oakland, MO

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ESOP advisor in Oakland, MO. Employee stock ownership plans (ESOPs) have become an increasingly well-liked retirement plan for employees in a variety of sectors in Oakland, MO. They offer business owners an opportunity to exit 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 Oakland, MO business owners can do without professional help. Correct Capital's knowledgeable and savvy ESOP advisors help businesses of all sizes, in Oakland, MO and around the nation, develop tailored retirement plans that benefit themselves, their employees, and their revenue.

If you're seeking a trustworthy financial partner in Oakland, MO who shares your goals of establishing your company and employees for prolonged success, call Correct Capital at 877-930-4015, contact us online, or schedule a consultation 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 qualified retirement plan where employees receive shares of the company that employs them, 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 ownership and other executives. They offer excellent 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 preserving 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 right away. 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 free from federal income taxes
  • Align the goals of employees and stockholders
  • Offer a higher value proposition when hiring
  • Improve employee motivation and productivity
  • Improve employee retention and loyalty
  • Ease succession planning and business continuity
  • Retain 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 similar type of plan that is a combination of an ESOP and a 401(k). Ownership shares are given to employees as in an ESOP, employees can put in their own money to obtain additional stock through payroll deductions, or the company can match employee contributions with stock rather than 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 get the benefits of both. The experienced Oakland, MO ESOP advisors and retirement consultants of Correct Capital can support you find the right plans for your business.

What Our Oakland, MO ESOP Advisors Do for You

Whether you're moving on from control of your company or are interested in an ESOP's other benefits, you'll need a knowledgeable Oakland, 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 other 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 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 guarantee you receive 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 push ourselves and our clients to get imaginative with retirement plan offerings to optimize the benefits they offer. We'll assess your needs, evaluate several ESOP options, and recommend a tailored ESOP that meets legal requirements and is aimed at optimizing benefits. If it makes sense, we may also suggest combining an ESOP with a 401(k) or different retirement plans to additionally augment benefits, without sacrificing efficiencies.
  • Conduct a ESOP feasibility study — When we first meet with our clients, we work to understand their needs and work together with them to find the best qualified retirement plans for their company. For clients interested in an ESOP, part of that means conducting a feasibility analysis to ascertain 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 how they're best served
    • 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 accountants, attorneys, and a trustee to purchase stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Oakland, MO can help you set up your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict guidelines for the oversight of ESOPs. For instance, when employees participating in an ESOP at a closely held employer receive company stock in an ESOP distribution, they have the right 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 impact on your company. ESOP advisors can plan for these changes and react to them in real time, enabling your plan to stay feasible, in accordance with regulations, and advantageous.
  • Employee communication and education — Our ESOP advisors offer collective workshops and individual consultations with your employees so they can maximize the benefits from your ESOP. 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 gaining ownership of their financial health and eventual retirement.

Why Choose Correct Capital as Your ESOP Advisor in Oakland, 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 believe make us unique from other financial advisory firms in Oakland, MO, and all over 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 know retirement plans and ESOPs. Correct Capital's clients currently operate these plans in a range of sectors, 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 develop a plan that satisfies the needs of both, as well as those of your stockholders.
  • Our award-winning Oakland, 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 best serve each client distinctively.
  • As independent fiduciary advisors, we are legally and ethically 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 founded on trust and the shared goal of growing your and your employees' financial prosperity.

Other services we offer in Oakland, MO:

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

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

If you're interested in learning more about ESOPs or desire to commence the process of setting one up for your Oakland, MO business, reach out to a Correct Capital ESOP advisor now. Let us do what we do best so you can concentrate on what you care about most: positioning yourself, your business, and your employees up for achievement. Reach out with one of our Oakland, MO ESOP advisors immediately at 877-930-4015 or contact us online.


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