Accounting, Taxes and Special Planning


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Contact us today:  (806) 683-4324  /  Emerson@rickstrewcpa.com

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Esops

Employee Stock Ownership Plans  


                              What is an ESOP?   

          An ESOP is a qualified Benefit Pension Plan with two important  characteristics: 

             1. An ESOP invests primarily in the stock of its sponsoring company.​

​             2. An ESOP can borrow money to facilitate its investment in the company stock.


                     Who might benefit from an ESOP?  

        1.   A successful, privately owned “C” or “S” corporation with debt  capacity, where the                                shareholders are interested in selling some or all of their stock in the company.


        2.   A company large enough that the tax savings of the ESOP clearly justify the costs                                 incurred to implement and maintain the ESOP.


        3.  A company with adequate payroll to create deductibility of the ESOP
              contribution - generally, a significant non-owner, non-family member payroll. 


        4.  A company with strong successor management in place, or in development during a

             phase- out period.


    Do you want to sell your successful, privately-held business?   

 An ESOP, properly structured, can allow you to: 

      

  •      Receive value for all or part of your company stock without income or estate tax

               consequences;


  •      ​Have your company purchase your stock and deduct the entire purchase price;

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  • ​     Maintain management control while ownership transitions away from you;


  •      Spread ownership among all employees and develop a stronger company culture.


                             An ESOP can also be used to: 
  •      Purchase capital assets, or another company, with pretax dollars;


  •      ​Re-structure existing debt and deduct both the principal and interest on repayment             of the debt. 

               Our ESOP and Pension Plan Experience

           

   *  Transaction and continuing trustee for a steel building fabrication/erection company. 

  
    * Transaction and continuing trustee for an electrical construction contractor. 

 
    * Transaction and continuing trustee for low income housing credit company.

 

    * Transaction and continuing trustee for a regional gas station/mini-mart operator.


    * Transaction and continuing trustee for a large corporate housing company.

 

    * Transaction and continuing trustee for a geo-environmental company.


    * Transaction and continuing trustee for regional agricultural products packaging company.

 

    * Continuing trustee for a ready mix cement company.

    * Continuing trustee for a phone/internet marketing company.       


 You can be confident that Emerson Rickstrew,CPA has the expertise and contacts with the necessary professionals to make your Employee Stock Ownership Plan work for the benefit of sellers and plan participants, or solve any problems with your current ESOP or pension plan.