ESOP Advisor in O'Fallon, IL

Complimentary financial planning By Savology

ESOP advisor in O'Fallon, IL. Employee stock ownership plans (ESOPs) are becoming a more and more well-liked retirement plan for employees in a variety of sectors in O'Fallon, IL. They offer business owners a chance to pass the torch from their company while significantly reducing taxes on the sale, and offer employees a qualified retirement plan that increases their productivity and motivation. However, designing, implementing, and maintaining an ESOP isn't something most O'Fallon, IL business owners can do without professional help. Correct Capital's proficient and savvy ESOP advisors help businesses of all sizes, in O'Fallon, IL and around the country, create tailored retirement plans that benefit themselves, their employees, and their bottom line.

If you're seeking an experienced financial partner in O'Fallon, IL who shares your goals of setting up your company and employees for enduring success, call Correct Capital at 877-930-4015, contact us online, or schedule a consultation with one of our financial advisors immediately.


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


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 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 a superior 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 market value 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 that tax hit instead of being required to pay taxes right away. In many cases, ESOPs are a transition plan that keeps the most amount of money attainable 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)
  • Further 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
  • Enhance employee motivation and productivity
  • Enhance employee retention and loyalty
  • Enable succession planning and business continuity
  • Maintain control while organizing or easing into retirement
  • Amplify personal liquidity of owners, but still keep 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 add their own money to buy additional stock 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, adding an ESOP or KSOP to a more traditional retirement plan allows you to receive the benefits of both. The experienced O'Fallon, IL ESOP advisors and retirement consultants of Correct Capital can support you find the best retirement plan for you, your business, and your employees.

How Our O'Fallon, IL 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 O'Fallon, 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 retain more of the sales proceeds for different 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 that money in qualified replacement securities or QRP. Taxes would be owed 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 implement an ESOP suited specifically to you and your company. We like to challenge ourselves and our clients to get innovative with retirement plan offerings to enhance the benefits they provide. We'll examine your needs, assess various ESOP options, and suggest a tailored ESOP that meets legal requirements and is aimed at maximizing benefits. If it makes sense, we may also recommend combining an ESOP with a 401(k) or alternative retirement plans to further 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 discover the best 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 viable 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 what they need from their retirement plan
    • 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, attorneys, and a trustee to purchase stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in O'Fallon, IL can help you establish your ESOP team with reliable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations 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 right to require the employer to buy back 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 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 develops 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 viable, in accordance with regulations, and advantageous.
  • 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 share of your company, but they'll feel like they're obtaining ownership of their financial health and eventual retirement.

Why Choose Correct Capital as Your ESOP Advisor in O'Fallon, IL

Correct Capital is an independent advisory firm that specializes in assisting business owners create retirement plans and succession plans for their enterprises. There are multiple factors we point to that distinguish us from other financial consulting companies in O'Fallon, IL, and throughout 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 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 ideally suited to understand the requirements of each and create a plan that fulfills the needs of both, as well as those of your stockholders.
  • Our award-winning O'Fallon, IL 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 uniquely.
  • As independent fiduciary advisors, we are lawfully and morally bound to do what's in the optimal interest of you, your employees, and your company. We strive to form long-term relationships with our clients grounded in trust and the shared goal of increasing your and your employees' financial prosperity.

Other services we offer in O'Fallon, IL:

ESOP Advisor in O'Fallon, IL | Retirement Consultants | Financial Advisors Near O'Fallon

Call Correct Capital to Speak With an ESOP Advisor in O'Fallon, IL Today

If you're interested in learning more about ESOPs or wish to commence the process of setting one up for your O'Fallon, IL business, get in touch with a Correct Capital ESOP advisor at this moment. 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 success. Reach out with one of our O'Fallon, IL ESOP advisors immediately 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