ESOP Advisor in St. Louis Hills, MO

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ESOP advisor in St. Louis Hills, MO. Employee stock ownership plans (ESOPs) are becoming a more and more popular retirement plan for employees in various industries in St. Louis Hills, MO. They offer business owners a chance to step away from their company while significantly 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 St. Louis Hills, MO business owners can do alone. Correct Capital's experienced and savvy ESOP advisors help businesses of all sizes, in St. Louis Hills, MO and around the United States, develop tailored retirement plans that benefit themselves, their employees, and their bottom line.

If you're in search of a trustworthy financial partner in St. Louis Hills, 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 immediately.


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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 qualified 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 decision-making shares, meaning control of the company stays with the C-suite. They offer superb 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 market value value.

Perhaps even more importantly, by transferring part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to distribute that tax hit instead of needing to pay taxes right away. 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)
  • 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
  • Ease succession planning and business continuity
  • Maintain control while arranging or easing into retirement
  • Raise 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 mix between an ESOP and a 401(k). Ownership shares are given to employees as in an ESOP, employees can contribute their own money to purchase 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 the risk tolerance that comes with diverse investments. In fact, incorporating an ESOP or KSOP to a more traditional retirement plan allows you to receive the benefits of both. The experienced St. Louis Hills, MO ESOP advisors and retirement consultants of Correct Capital can aid you find the best retirement plan for you, your company, and your employees.

How Our St. Louis Hills, MO ESOP Advisors Can Help

Whether you're stepping from ownership of your company or are interested in an ESOP's other benefits, you'll need a knowledgeable St. Louis Hills, MO ESOP advisory firm by your side to get the most out of your plan. When you work with Correct Capital, we:

  • Lower your tax liability as much as possible — When you sell your ownership shares to an ESOP, you can reinvest the proceeds in alternative securities to postpone capital gains taxes on the sales, allowing you to keep more of the sales proceeds for other 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 the proceeds in qualified replacement securities or QRP. Taxes would be payable until the taxpayer has a disposition of the QRP. An ESOP advisor can guarantee you receive the most tax benefit from your ESOP.
  • Personalize 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 innovative with retirement plan offerings to maximize the benefits they offer. We'll evaluate your needs, assess various ESOP options, and suggest a personalized ESOP that meets legal requirements and is aimed at maximizing benefits. If we believe it's a good idea, we may also recommend combining an ESOP with a 401(k) or other retirement plans to additionally increase 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 discover the optimal tax-advantaged retirement plans for their business. 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 the implications of 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 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 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 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 establish your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict requirements for the administration of ESOPs. For example, when individuals enrolled in an employee stock ownership plan at a closely held employer receive company stock in an ESOP distribution, they have the right to require the employer to redeem them at market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on how long they've worked there. Most of the time, that means ownership of the company is passed to the ESOP in increments. 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 respond to them in real time, enabling your plan to stay workable, in accordance with regulations, and beneficial.
  • 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 partial ownership 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 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 businesses. There are multiple factors we point to that set us apart from other financial consulting companies in St. Louis Hills, MO, and throughout the nation:

  • We know retirement plans and ESOPs. Correct Capital's clients currently operate these plans in a range of industries, including for construction companies and contractors. As we work with both businesses and individuals and families when managing retirement plans, we're perfectly positioned to understand the needs of each and create a plan that meets the requirements of both, as well as those of your stockholders.
  • As independent fiduciary advisors, we are legally and morally bound to do what's in the utmost benefit 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' 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 aspire to commence the process of setting one up for your St. Louis Hills, MO business, get in touch with a Correct Capital ESOP advisor now. Let us do what we do best so you can focus on what you value most: establishing yourself, your business, and your employees up for achievement. Get in touch with one of our St. Louis Hills, MO ESOP advisors now at 877-930-4015 or contact us online.


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