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Address:

425 N. Martingale Rd, Suite 200
Schaumburg, IL 60173

Phone:

Mike McCarthy 847-944-7920,Elias Friedman 847-944-7922,Cynthia Bridges Jones 847-944-7944,Meredith Fiocchi 847-944-7921,Kim Smith 847-944-7923,Jennifer Shulman 847-944-7912Toll-Free 844-378-5237

Fax/Other:

847-944-7933

What is an ESOP?

An Employee Stock Ownership Plan (ESOP) is a type of qualified retirement plan often used as a business succession or liquidity strategy.  As the name implies, ESOPs offer employees the opportunity to become owners of their company by having shares of stock allocated to their accounts in a tax-qualified trust.  Tax incentives available only to those selling their interest to an ESOP trust, and to companies owned in part or in whole by an ESOP, enhance the benefit of this transaction to both the company and the selling shareholder. This can be a very effective estate planning tool; creating liquidity and business succession planning that enhance both sides of the transaction.

By having control over how much of the business is sold to the ESOP and when, the seller maintains control over their exit strategy and has created a buyer for the stock that does not exist today. The Internal Revenue Code can include the option to defer, (and with proper planning potentially eliminate), the capital gain on the sale of the shares to the ESOP trust, and the shares within the trust grow on a tax deferred basis, enhancing liquidity for both shareholders and employees.

ESOP 101 Brochure

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