Employee Stock Ownership Plan (ESOP) Companies

Audits, Valuations, and Advisory Services for ESOPs

Trout CPA serves as business, tax, and valuation advisors to employee-owned companies across a variety of industries. No matter where you are in the ESOP process; a business owner looking to sell all or part of your business, or a seasoned ESOP company, our professionals are ready to assist. Our long-term relationship with trustees, attorneys, third-party administrators and financial institutions allows us to provide you with access to highly knowledgeable resources.

What is an ESOP?

An ESOP is an Employee Stock Ownership Plan. Technically, it’s a tax qualified retirement plan. An ESOP’s primary purpose is to invest in the stock of the employing company. By owning shares of the company, employees are encouraged to think and act like shareholders.

What are the benefits of an ESOP?

An ESOP can be an effective exit strategy for owners of closely-held companies. Key benefits include:

Tax Advantages: ESOPs offer significant tax benefits to both the company and the selling shareholders.
Employee Incentives: Employees gain a vested interest in the success of the company, promoting loyalty and productivity.
Business Continuity: ESOPs can ensure the smooth transition of ownership and help preserve the company’s legacy.

You should weigh the benefits of an ESOP against associated costs and complexities. We can assist you with this analysis.