ESOP Advisor in Swansea, IL

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ESOP advisor in Swansea, IL. Employee stock ownership plans (ESOPs) have become an increasingly common retirement benefit for employees in various industries in Swansea, IL. They offer business owners a chance to transition from their company while significantly 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 Swansea, IL business owners can do without professional help. Correct Capital's knowledgeable and savvy ESOP advisors help businesses of all sizes, in Swansea, IL and around the country, create tailored retirement plans that benefit themselves, their employees, and their bottom line.

If you're in search of an experienced financial partner in Swansea, IL who shares your goals of establishing 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 now.


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About Employee Stock Ownership Plans (ESOPs)

An ESOP is a qualified retirement plan where employees receive stock of the company that employs them, rather than savings accounts 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 voting shares, meaning control of the company stays with the C-suite. They offer great 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. Upon reaching retirement, most employees sell the stock at stock market value.

Perhaps most importantly, 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 being required to pay taxes immediately. In many cases, ESOPs are a transition 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)
  • Further tax deductions through contributions made to employees
  • If the business is one day 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
  • Enhance employee motivation and productivity
  • Enhance employee retention and loyalty
  • Enable succession planning and business continuity
  • Retain control while organizing or easing into retirement
  • Raise 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 similar type of 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 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, introducing an ESOP or KSOP to a more traditional retirement plan allows you to get the benefits of both. The experienced Swansea, IL ESOP advisors and retirement consultants of Correct Capital can aid you find the right plans for your business.

What Our Swansea, IL ESOP Advisors Do for You

Whether you're stepping from ownership of your company or are interested in an ESOP's other benefits, you'll need an experienced Swansea, IL ESOP advisory firm in your corner to reap the most benefits of your plan. When you work with Correct Capital, we:

  • Lower 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 other securities to postpone capital gains taxes on the sales, permitting you to retain more of the sales proceeds for various purposes. To defer capital gains taxes, your ESOP advisor can help you perform 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 guarantee you get the most tax benefit from your ESOP.
  • Personalize your ESOP and retirement plans — Along with your team, we'll develop and execute an ESOP that works best for you and your distinctive company. We like to challenge ourselves and our clients to get imaginative with retirement plan offerings to enhance the benefits they offer. We'll evaluate your needs, assess several ESOP options, and suggest a tailored ESOP that meets legal requirements and is aimed at maximizing benefits. If we believe it's a good idea, we may also advise combining an ESOP with a 401(k) or other retirement plans to additionally boost benefits, without sacrificing efficiencies.
  • Conduct a ESOP feasibility study — When we first meet with our clients, we work to comprehend their needs and collaborate with them to discover the optimal tax-advantaged 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 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, attorneys, and a trustee to acquire stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Swansea, IL can help you arrange your ESOP team with trusted partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations for the management of employee stock ownership plans. For instance, when individuals enrolled in an employee stock ownership plan at a closely held employer receive company stock in an ESOP distribution, they have the option to demand the employer to buy back them at market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on length of service. 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 implications for your company. ESOP advisors can plan for these changes and respond to them in real time, allowing your plan to stay viable, in accordance with regulations, and profitable.
  • Employee communication and education — Our ESOP advisors offer group sessions 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 acquire partial ownership of your company, but they'll feel like they're gaining ownership of their economic well-being and eventual retirement.

Why Choose Correct Capital as Your ESOP Advisor in Swansea, IL

Correct Capital is an independent advisory firm that specializes in assisting business owners arrange retirement plans and succession plans for their companies. There are several factors we believe distinguish us from other financial consulting companies in Swansea, IL, and all over 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 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 well-prepared to understand the requirements of each and develop a plan that satisfies the requirements of both, as well as those of your stockholders.
  • Our award-winning Swansea, IL financial advisory team is composed 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 legally and ethically bound to do what's in the best interest of you, your employees, and your company. We endeavor to establish long-term relationships with our clients founded on trust and the shared goal of expanding your and your employees' wealth.

Other services we offer in Swansea, IL:

ESOP Advisor in Swansea, IL | Retirement Consultants | Financial Advisors Near Swansea

Call Correct Capital to Speak With an ESOP Advisor in Swansea, IL Today

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


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