It is important that clients considering selling their business consider all options available.  One option is to sell the company to employees.  This can be accomplished through an employee stock ownership plan (ESOP).  An ESOP is an ownership interest in a company held by the company’s workforce. The ownership interest may be facilitated by the company as part of employees’ remuneration or incentive compensation for work performed, or the company itself may be employee owned.  If you are interested in an ESOP you should discuss this with a qualified tax advisor.

An ESOPis a stock bonus plan, or a stock bonus plan combined with a money purchase plan, that: