More Advantages of an ESOP

If you are an owner looking for a long-term exit strategy, or if you have employees who think like business owners, or if you are a private company with 30 or more employees, you might want to consider forming an ESOP.  This article explains ESOPs and their tax benefits. What is an ESOP? An Employee Stock Ownership Plan (ESOP) is a company-funded retirement plan that holds company stock in accounts for the employee participants.  An ESOP is a... Read More

Why Should Companies Consider Succession Planning?

The success of a company depends on the quality of its leaders and the management team they put in place. Often times, owners of a business spend a great deal of time and resources to put a management team in place that is capable of driving profitability and competitiveness while instilling the right corporate culture in the company. Such positive measures in turn benefits the owners and current leaders of the company. The question is what happens... Read More

What is an ESOP?

Glenn M. Gelman, Managing Director at Glenn M. Gelman & Associates explains what an ESOP is and what the advantages are when forming a Employee Stock Ownership Plan. Glenn M. Gelman and Associates is one of the leading accounting firms providing fully integrated ESOP formation and consulting services.  Read More

Are we too small for an ESOP plan? What are the costs?

Generally speaking, forming an ESOP can be costly, and therefore, not feasible for every closely held company. We encourage you to speak with an ESOP expert at Glenn M. Gelman & Associates to determine whether an ESOP is right for your company.  Read More

Advantages of Employee Stock Ownership Plans

Advantages of Employee Stock Ownership Plans Company can use tax-deductible corporate earnings to buy shares from selling shareholders Creates a market for the stock of the shareholders Shareholders with management responsibilities will have the flexibility to sell gradually and ease out of the business over a number of years Allows financing of corporate acquisitions through the ESOP on a tax-advantaged basis Enhances corporate performance and... Read More

What type of companies are good candidates to become an ESOP?

What type of companies are good candidates to become an ESOP? Privately held companies with at least 30 employees Company has been established for at least 3 years  Business valuation of at least $10M Annual payroll of at least $1M Company has historically been profitable with solid earnings and has the ability to secure bank term financing Corporate culture the desires to reward employee performance Corporate structure is either C or S corporation Owners... Read More

What are the rights of ESOP participants?

An ESOP is a qualified, defined contribution plan similar to a 401k plan structured to primarily invest in the employer’s stock. Technically, it’s a type of stock bonus plan that benefits the participants and allocates company stocks to the participants. In effect, the employees ultimately receive company stocks at no out of pocket cost to them. The allocation of company stocks to employee accounts is not a taxable transaction and there... Read More

Discover the potential of Employee Stock Ownership Plans

Glenn M. Gelman, Managing Director at Glenn M. Gelman & Associates explains what an ESOP is and what the advantages are when forming a Employee Stock Ownership Plan. Glenn M. Gelman and Associates is one of the leading accounting firms providing fully integrated ESOP formation and consulting services.  Read More