- When is an ESOP to right tool for business succession?
- What are the rules for ESOP participation?
- How are shares in an ESOP valued?
- What are the tax benefits of an ESOP?
- What are the costs and risks of an ESOP?
- Do ESOPs help company performance?
- How are ESOPs governed?
Attendees at this session will learn how ESOPs work and can be used as a tool for owners of privately held companies to provide for tax-favored transition, what the rules for ESOPs are, and how to determine of a company is a god candidate.
- Tax rules for ESOPs
- Eligibility, participation and distribution requirements for ESOP trusts
- How valuations for closely held ESOPs are done
- Who governs an ESOP and under what rules?
- Using bank loans to fund an ESOP
- Using seller notes to fund an ESOP
- How much do ESOPs cost?
- When does an ESOP not work?
Employee Stock Ownership Plans (ESOPs) are a highly tax-favored ways for businesses owners to provide for transition and/or reward and engage employees by sharing ownership. ESOPs are employee benefit trusts set up and funded by the company. The trust uses tax-deductible company contributions to buy shares from owners or the company can just contribute shares. Employees build accounts over their tenure. Owners selling to an ESOP can defer tax on the gain, and 100% ESOPs pay no income tax. ESOP companies outperform their peers and employees acquire substantially more assets over time than employees in non-ESOP companies. ESOPs are flexible instruments that can be used to buy out shares gradually or all at once.
Mr Mark Schwartz,
Payroll Tax Consultant ,
Mark Schwartz has over 15 years experience in state and federal payroll tax audits, collections, and payroll consulting.
A former payroll auditor, Mark prided himself on his ability to educate employers on state and federal payroll tax requirements. Whatever issues he found in audits, he ensured the auditee knew how to comply in the future. He worked to minimize company disruptions in the audit process.
In addition to his real-life experiences, Mark has a Masters in Business Administration, and currently uses his entertaining and helpful personality to help organizations prepare for payroll tax audits - whether they've already got the notice or are still hoping they don't!