ESOP Advisor in Rock Hill, MO

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ESOP advisor in Rock Hill, MO. Employee stock ownership plans (ESOPs) are becoming a more and more common retirement benefit for employees in a variety of sectors in Rock Hill, MO. They offer business owners a chance to transition from their company while considerably reducing taxes on the sale, and offer employees a qualified retirement plan that increases their investment in your company. However, designing, implementing, and maintaining an ESOP isn't something most Rock Hill, MO business owners can do without professional help. Correct Capital's experienced and savvy ESOP advisors help businesses of all sizes, in Rock Hill, MO and around the country, establish tailored retirement plans that benefit themselves, their employees, and their profit.

If you're seeking an experienced financial partner in Rock Hill, MO who shares your goals of creating 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 today.


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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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About Employee Stock Ownership Plans (ESOPs)

An ESOP is a tax-advantaged retirement plan where employees receive shares of the company that employs them, rather than savings funds or investments in other companies as in a typical retirement plan. ESOPs are 100% company funded, and often times shares offered to employees are not controlling shares, meaning control of the company stays with the C-suite. They offer great 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. When they retire, most employees sell the stock at market value.

Of special interest to business owners, by selling part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to allocate that tax hit instead of having to pay taxes at once. In many cases, ESOPs are a succession plan that keeps the most amount of money possible 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)
  • Additional tax deductions through contributions made to employees
  • If the business is one day 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
  • Improve employee retention and loyalty
  • Ease succession planning and business continuity
  • Keep control while organizing or easing into retirement
  • Increase personal liquidity of owners, but still retain control of the company
  • Preserve 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 provided to employees as in an ESOP, employees can deposit their own money to obtain 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, adding an ESOP or KSOP to a more traditional retirement plan allows you to receive the benefits of both. The experienced Rock Hill, MO ESOP advisors and retirement consultants of Correct Capital can assist you find the best retirement plan for you, your business, and your employees.

What Our Rock Hill, 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 Rock Hill, MO ESOP advisory firm in your corner to reap the most benefits of your plan. When you work with Correct Capital, we:

  • Reduce your tax liability as much as possible — When you sell your ownership shares to an ESOP, you can reinvest the proceeds in different securities to defer capital gains taxes on the sales, permitting you to keep more of the sales proceeds for various purposes. To defer capital gains taxes, your ESOP advisor can help you execute 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 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 unique company. We like to test ourselves and our clients to get innovative with retirement plan offerings to enhance the advantages they provide. We'll examine your needs, evaluate different ESOP options, and recommend a personalized ESOP that meets legal requirements and is aimed at optimizing benefits. If we believe it's a good idea, we may also suggest combining an ESOP with a 401(k) or different 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 carrying out a feasibility analysis to determine if it's a feasible option for your company. We'll analyze:
    • 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 accountants, lawyers, and a trustee to buy stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Rock Hill, MO can help you arrange your ESOP team with reliable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict requirements for the administration of ESOPs. 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 redeem 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 sold 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 implications for your company. ESOP advisors can plan for these changes and react to them in real time, facilitating your plan to stay workable, in accordance with regulations, and advantageous.
  • Employee communication and education — Our ESOP advisors offer group meetings and one-on-one meetings with your employees so they can optimize the advantages from your ESOP. With an ESOP advisor from Correct Capital, your employees won't just get 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 Rock Hill, MO

Correct Capital is an independent advisory firm that specializes in helping business owners create retirement plans and succession plans for their enterprises. There are numerous factors we believe distinguish us from other financial consulting companies in Rock Hill, 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 variety of industries, including for construction companies and contractors. As we work with both businesses and individuals and families when managing retirement plans, we're well-prepared to understand the requirements of each and create a plan that fulfills the requirements of both, as well as those of your stockholders.
  • Our award-winning Rock Hill, 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 80 years of combined experience, we pool our collective talents and insights to best serve each client distinctively.
  • As independent fiduciary advisors, we are lawfully and ethically bound to do what's in the utmost benefit of you, your employees, and your company. We endeavor to form long-term relationships with our clients founded on trust and the shared goal of increasing your and your employees' monetary well-being.

Other services we offer in Rock Hill, MO:

ESOP Advisor in Rock Hill, MO | Retirement Consultants | Financial Advisors Near Rock Hill

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

If you're interested in learning more about ESOPs or wish to start the process of setting one up for your Rock Hill, MO 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: establishing yourself, your business, and your employees up for achievement. Contact with one of our Rock Hill, MO ESOP advisors now at 877-930-4015 or contact us online.


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