ESOP Advisor in St. Louis Hills, MO

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ESOP advisor in St. Louis Hills, MO. Employee stock ownership plans (ESOPs) have become an increasingly common retirement plan for employees in various industries in St. Louis Hills, MO. They offer business owners an opportunity to move on from their company while significantly reducing taxes on the sale, and offer employees a qualified retirement plan that builds their productivity and motivation. However, designing, implementing, and maintaining an ESOP isn't something most St. Louis Hills, MO business owners can do by themselves. Correct Capital's experienced and savvy ESOP advisors help businesses of all sizes, in St. Louis Hills, MO and around the nation, create tailored retirement plans that benefit themselves, their employees, and their revenue.

If you're looking for a trustworthy financial partner in St. Louis Hills, MO who shares your goals of building your company and employees for enduring success, call Correct Capital at 877-930-4015, contact us online, or schedule an appointment with one of our financial advisors right away.


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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 stock of the company they work for, 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 governing shares, meaning control of the company stays with the C-suite. They offer fantastic incentives to employees while providing businesses with an enhanced value proposition to employees, and allow business owners to set up a succession plan while retaining control. When they retire, most employees sell the stock at stock 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 disperse the tax consequences of the sale instead of needing to pay taxes immediately. In many cases, ESOPs are a transition plan that keeps the most amount of money possible 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)
  • Additional tax deductions through contributions made to employees
  • If the business is eventually 100% owned as an S-Corp by the ESOP, it's not subject to federal income taxes
  • Align the goals of employees and stockholders
  • Provide a higher value proposition when hiring
  • Boost employee motivation and productivity
  • Boost employee retention and loyalty
  • Enable succession planning and business continuity
  • Maintain control while organizing or easing into retirement
  • Raise personal liquidity of owners, but still hold on to control of the company
  • Preserve your business' legacy and culture

What About KSOPs?

A KSOP is a similar type of plan that is a mix between an ESOP and a 401(k). Ownership shares are offered to employees as in an ESOP, employees can add their own money to buy additional shares 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, incorporating an ESOP or KSOP to a more traditional retirement plan allows you to get the benefits of both. The experienced St. Louis Hills, MO ESOP advisors and retirement consultants of Correct Capital can help you find the best retirement plan for you, your business, and your employees.

What Our St. Louis Hills, 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 St. Louis Hills, MO ESOP advisory firm in your corner to get the most out of your plan. When you work with Correct Capital, we:

  • Reduce 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 postpone capital gains taxes on the sales, allowing you to retain more of the sales proceeds for different purposes. To postpone 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 payable until the taxpayer has a sale of the QRP. An ESOP advisor can ensure you get the most tax benefit from your ESOP.
  • Personalize your ESOP and retirement plans — Along with your team, we'll create and set up an ESOP that works best for you and your one-of-a-kind company. We like to push ourselves and our clients to get imaginative with retirement plan offerings to optimize the advantages they offer. We'll evaluate your needs, evaluate different ESOP options, and propose a tailored 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 other 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 optimal tax-advantaged retirement plans for their company. For clients interested in an ESOP, part of that means conducting a feasibility analysis to determine if it's a feasible option for your company. We'll examine:
    • 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 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 St. Louis Hills, MO can help you set up your ESOP team with reliable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations for the administration of retirement 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 ask for 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 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 progresses 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 workable, in accordance with regulations, and profitable.
  • Employee communication and education — Our ESOP advisors offer collective workshops and individual consultations 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 portion of your company, but they'll feel like they're achieving ownership of their financial stability and eventual retirement.

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

Correct Capital is an independent advisory firm that specializes in assisting business owners establish retirement plans and succession plans for their enterprises. There are several factors we believe set us apart from other investment advisory agencies in St. Louis Hills, MO, and all over the nation:

  • 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 variety of sectors, 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 demands of each and establish a plan that fulfills the needs of both, as well as those of your stockholders.
  • Our award-winning St. Louis Hills, 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 effectively cater to each client distinctively.
  • 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 aim to establish long-term relationships with our clients based on trust and the common goal of growing your and your employees' monetary well-being.

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

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

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

If you're interested in learning more about ESOPs or wish to initiate the process of setting one up for your St. Louis Hills, MO business, reach out to a Correct Capital ESOP advisor at this moment. Let us do what we do best so you can prioritize on what you value most: positioning yourself, your business, and your employees up for achievement. Contact with one of our St. Louis Hills, MO ESOP advisors immediately at 877-930-4015 or contact us online.


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