ESOP Advisor in Westwood, MO

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ESOP advisor in Westwood, MO. Employee stock ownership plans (ESOPs) have become an increasingly popular retirement plan for employees in a variety of sectors in Westwood, MO. They offer business owners a chance to transition from their company while greatly reducing taxes on the sale, and offer employees a tax-advantaged retirement plan that builds their investment in your company. However, designing, implementing, and maintaining an ESOP isn't something most Westwood, MO business owners can do without professional help. Correct Capital's knowledgeable and savvy ESOP advisors help businesses of all sizes, in Westwood, MO and around the country, develop tailored retirement plans that benefit themselves, their employees, and their profit.

If you're looking for an experienced financial partner in Westwood, MO who shares your goals of setting up your company and employees for long-term success, call Correct Capital at 877-930-4015, contact us online, or schedule a consultation with one of our financial advisors at this moment.


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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 shares of the company they work for, rather than savings accounts or investments in other companies as in a typical retirement plan. 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 an improved value proposition to employees, and allow business owners to set up a succession plan while retaining control. Upon reaching retirement, 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 the tax consequences of the sale instead of being required to pay taxes right away. In many cases, ESOPs are a transition plan that keeps the most amount of money feasible 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 not subject to federal income taxes
  • Align the goals of employees and stockholders
  • Provide a higher value proposition when hiring
  • Enhance employee motivation and productivity
  • Enhance employee retention and loyalty
  • Facilitate succession planning and business continuity
  • Keep control while arranging 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 tax-advantaged plan that is a mix between an ESOP and a 401(k). Ownership shares are extended to employees as in an ESOP, employees can add their own money to acquire additional shares through payroll deductions, or the company can match employee contributions with stock instead of 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 receive the benefits of both. The experienced Westwood, MO ESOP advisors and retirement consultants of Correct Capital can help you find the best retirement plan for you, your company, and your employees.

What Our Westwood, 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 a knowledgeable Westwood, MO ESOP advisory firm to partner with 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 different securities to defer capital gains taxes on the sales, permitting you to keep more of the profit. To postpone capital gains taxes, your ESOP advisor can help you carry out 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 obtain the most tax benefit from your ESOP.
  • Personalize 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 challenge ourselves and our clients to get innovative with retirement plan offerings to optimize the benefits they offer. We'll assess your needs, evaluate several ESOP options, and suggest a customized ESOP that meets legal requirements and is aimed at maximizing benefits. If we believe it's a good idea, we may also suggest combining an ESOP with a 401(k) or alternative retirement plans to further increase benefits, without sacrificing 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 best qualified 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 workable 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 what they need from their retirement plan
    • Tax implications for both your company and shareholders
    • Company culture and employee engagement to determine 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 purchase stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in Westwood, MO can help you set up your ESOP team with trusted partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict guidelines for the oversight of retirement 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 right to require the employer to repurchase 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 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 evolves and matures, so will its implications for your company. ESOP advisors can plan for these changes and react to them in real time, allowing your plan to stay feasible, compliant, and profitable.
  • Employee communication and education — Our ESOP advisors offer collective workshops and one-on-one meetings with your employees so they can get the most from your employee stock ownership plan. With an ESOP advisor from Correct Capital, your employees won't just acquire a portion of your company, but they'll feel like they're obtaining ownership of their economic well-being and future.

Why Choose Correct Capital as Your ESOP Advisor in Westwood, MO

Correct Capital is an independent advisory firm that specializes in helping business owners create retirement plans and succession plans for their businesses. There are numerous factors we believe make us unique from other investment advisory agencies in Westwood, MO, and across the country:

  • 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 sectors, including for construction companies and contractors. As we work with both businesses and individuals and families when managing retirement plans, we're ideally suited to understand the demands of each and establish a plan that meets the needs of both, as well as those of your stockholders.
  • Our award-winning Westwood, MO 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 morally bound to do what's in the optimal interest of you, your employees, and your company. We endeavor to form long-term relationships with our clients based on trust and the common goal of increasing your and your employees' monetary well-being.

Other services we offer in Westwood, MO:

ESOP Advisor in Westwood, MO | Retirement Consultants | Financial Advisors Near Westwood

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

If you're interested in learning more about ESOPs or aspire to initiate the process of setting one up for your Westwood, MO business, get in touch with a Correct Capital ESOP advisor now. Let us do what we do best so you can prioritize on what you care about most: establishing yourself, your business, and your employees up for success. Get in touch with one of our Westwood, MO ESOP advisors now at 877-930-4015 or contact us online.


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