ESOP Advisor in St. Louis, MO

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ESOP advisor in St. Louis, MO. Employee stock ownership plans (ESOPs) have become an increasingly popular retirement benefit for employees in various industries in St. Louis, MO. They offer business owners a chance 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, MO business owners can do without professional help. Correct Capital's experienced and savvy ESOP advisors help businesses of all sizes, in St. Louis, MO and around the country, create tailored retirement plans that benefit themselves, their employees, and their revenue.

If you're seeking an experienced financial partner in St. Louis, MO who shares your goals of setting up your company and employees for prolonged 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 tax-advantaged retirement plan where employees receive stock of the company that employs them, rather than savings accounts 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 decision-making shares, meaning control of the company stays with the C-suite. They offer excellent incentives to employees while providing businesses with a better value proposition in the hiring process, and allow business owners to set up a succession plan while retaining control. Upon reaching retirement, most employees sell the stock at stock market value.

Perhaps most importantly, by transferring part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to spread out the tax consequences of the sale instead of having to pay taxes right away. In many cases, ESOPs are a transition plan that keeps the most amount of money achievable 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 exempt from federal income taxes
  • Align the goals of employees and stockholders
  • Offer a higher value proposition when hiring
  • Boost employee motivation and productivity
  • Enhance employee retention and loyalty
  • Simplify succession planning and business continuity
  • Retain 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 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 acquire 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 the risk tolerance that comes with diverse investments. In fact, including an ESOP or KSOP to a more traditional retirement plan allows you to receive the benefits of both. The experienced St. Louis, 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, MO ESOP Advisors Can Help

Whether you're moving on from ownership of your company or are interested in an ESOP's other benefits, you'll need an experienced St. Louis, MO ESOP advisory firm to partner with 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 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 disposition of the QRP. An ESOP advisor can assure you receive the most tax benefit from your ESOP.
  • Personalize your ESOP and retirement plans — Along with your team, we'll create and execute an ESOP that works best for you and your unique company. We like to challenge ourselves and our clients to get creative with retirement plan offerings to maximize the benefits they offer. We'll examine your needs, evaluate several ESOP options, and recommend a customized 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 collaborate with them to identify the best qualified retirement plans for their company. For clients interested in an ESOP, part of that means carrying out 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 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 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 acquire stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in St. Louis, MO can help you set up your ESOP team with dependable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations for the oversight 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 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 implications for your company. ESOP advisors can plan for these changes and respond to them in real time, enabling your plan to stay feasible, compliant, and profitable.
  • Employee communication and education — Our ESOP advisors offer group sessions and individual consultations with your employees so they can maximize the benefits from your retirement plan. 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 achieving ownership of their financial health and eventual retirement.

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

Correct Capital is an independent advisory firm that specializes in helping business owners arrange retirement plans and succession plans for their businesses. There are numerous factors we point to that make us unique from other financial advisory firms in St. Louis, MO, and across the United States:

  • 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 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 well-prepared to understand the demands of each and develop a plan that fulfills the requirements of both, as well as those of your stockholders.
  • Our award-winning St. Louis, MO 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 eight decades of combined experience, we pool our collective talents and insights to best serve each client uniquely.
  • As independent fiduciary advisors, we are lawfully and ethically bound to do what's in the best interest of you, your employees, and your company. We aim to establish long-term relationships with our clients based on trust and the shared goal of growing your and your employees' monetary well-being.

Other services we offer in St. Louis, MO:

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

Call Correct Capital to Speak With an ESOP Advisor in St. Louis, 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, MO business, contact 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 success. Contact with one of our St. Louis, MO ESOP advisors now at 877-930-4015 or contact us online.


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