ESOP Advisor in Westwood, MO

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ESOP advisor in Westwood, MO. Employee stock ownership plans (ESOPs) are becoming a more and more popular retirement benefit for employees in a variety of sectors in Westwood, MO. They offer business owners an opportunity to exit their company while substantially 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 seasoned and savvy ESOP advisors help businesses of all sizes, in Westwood, MO and around the United States, develop tailored retirement plans that benefit themselves, their employees, and their bottom line.

If you're seeking an experienced financial partner in Westwood, MO who shares your goals of creating your company and employees for sustained success, call Correct Capital at 314-930-4015, contact us online, or schedule a consultation with one of our financial advisors now.


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What Is an Employee Stock Ownership Plan (ESOP)?

An ESOP is a qualified retirement plan where employees receive shares of the company that employs them, rather than savings funds 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 controlling shares, meaning control of the company stays with the C-suite. They offer great incentives to employees while providing businesses with a better value proposition to employees, and allow business owners to set up a succession plan while preserving control. When they retire, most employees sell the stock at market value value.

Perhaps even more importantly, by handing over part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to disperse that tax hit instead of having to pay taxes at once. In many cases, ESOPs are a succession 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)
  • Additional tax deductions through contributions made to employees
  • If the business is one day 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
  • Improve employee motivation and productivity
  • Boost employee retention and loyalty
  • Enable succession planning and business continuity
  • Maintain control while preparing or easing into retirement
  • Amplify personal liquidity of owners, but still keep control of the company
  • Preserve your business' legacy and culture

What About KSOPs?

A KSOP is a qualified plan that is a combination of an ESOP and a 401(k). Ownership shares are provided to employees as in an ESOP, employees can deposit their own money to purchase 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, including an ESOP or KSOP to a more traditional retirement plan allows you to get the benefits of both. The experienced Westwood, MO ESOP advisors and retirement consultants of Correct Capital can support you find the right plans for your business.

What Our Westwood, MO 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 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 can reinvest the proceeds in alternative securities to defer capital gains taxes on the sales, permitting you to retain more of the sales proceeds for various purposes. To postpone 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 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 assure you receive 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 unique company. We like to push ourselves and our clients to get innovative with retirement plan offerings to enhance the benefits they provide. We'll examine your needs, assess different ESOP options, and suggest a tailored ESOP that meets legal requirements and is aimed at maximizing benefits. If we believe it'll work, we may also suggest combining an ESOP with a 401(k) or other 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 collaborate with them to discover the optimal qualified retirement plans for their business. For clients looking at an ESOP, part of that means carrying out a feasibility analysis to establish if it's a viable option for your company. We'll examine:
    • Cash flow, debts, and overall financial health
    • Ownership structure to understand the implications of 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 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 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 Westwood, MO can help you establish your ESOP team with trusted partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict requirements for the management 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 option to demand the employer to repurchase them at fair 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 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 develops and matures, so will its impact on your company. ESOP advisors can plan for these changes and adapt to them in real time, allowing your plan to stay feasible, compliant, and beneficial.
  • Employee communication and education — Our ESOP advisors offer collective workshops and personalized meetings with your employees so they can maximize the benefits 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 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 companies. There are multiple factors we point to that distinguish us from other investment advisory agencies in Westwood, MO, and throughout 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 know retirement plans and ESOPs. Correct Capital's clients currently operate these plans in a variety of industries, including for construction companies and contractors. As we work with both businesses and individuals and families to support in setting up retirement plans, we're well-prepared to understand the demands of each and develop a plan that satisfies 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 effectively cater to each client distinctively.
  • As independent fiduciary advisors, we are lawfully and ethically bound to do what's in the optimal interest of you, your employees, and your company. We endeavor to forge long-term relationships with our clients grounded in trust and the shared goal of expanding 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 wish to commence the process of setting one up for your Westwood, MO business, reach out to a Correct Capital ESOP advisor today. Let us do what we do best so you can focus on what you care about most: establishing yourself, your business, and your employees up for prosperity. Get in touch with one of our Westwood, MO ESOP advisors today at 314-930-4015 or contact us online.


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