ESOP Plans for Your Business
Why Offer an Employee Stock Ownership Plan?
Enables employees to become owners of the company by granting them shares of stock. This ownership stake fosters a sense of pride, loyalty, and commitment among employees. When employees have a financial stake in the company’s success, they often demonstrate increased engagement, productivity, and dedication to achieving company goals.
ESOPs can be an effective tool for business owners to transition ownership and plan for succession. Selling shares to the ESOP allows owners to gradually exit the company while maintaining continuity and preserving the business’s legacy. It provides a structured mechanism for transferring ownership to employees, ensuring the business’s continued operations and stability over the long term.
What We Handle
3(16) Recordkeeping and Administrative Services
The goal of a 3(16) fiduciary is to take on some or all of the employer’s fiduciary duties related to plan administration and reduce the administrative hassle involved in managing 401(k) plans, ESOP plans, or KSOP plans.
Employee Education and Enrollment Services
We provide in-person or online enrollment meetings as well as full access to our financial advisors.
Plan Audit Assistance
We prepare and gather all information needed for your plan audit so you don’t have to.
ESOP Testing and Processes
We will handle disqualified persons, synthetic equity, 409(p) anti-abuse rules and testing, share release calcuations, and S corp distrubtion and dividend processing.
Can you combine a 401(k) & an ESOP?
Yes, a KSOP is an alternative to a company sponsoring both an ESOP and a separate 401(k) plan. Maintaining one plan instead of two can be more cost effective and efficient.