Employee Stock Ownership Plans Jonesboro GA

As hard as it is to sell a construction business outright, it is even more difficult to sell in stages, allowing for a gradual withdrawal by the owner. An employee stock ownership plan, or ESOP, can, in the right circumstances, provide a way to accomplish this goal in a tax-advantaged and non-adversarial manner.

Local Companies

A & A Financial Services Inc
(404) 761-1696
3420 Norman Berry Dr
Atlanta, GA
A Plus Financial Services LLC
(404) 363-1702
3825 Jonesboro Rd Se
Atlanta, GA
Taylor Bean and Whitaker
404-454-3658
6707 MANCHA STREET
COLLEGE PARK, GA
Georgia Federal Credit Union - Lithonia
770-987-1040
2695 Panola Roard
Lithonia, GA
RBC Centura Bank
770-413-3600
7231 Rockbridge Road
Lithonia, GA
Washington Mutual Bank - Lithonia
678-418-2506
3007 Panola Road
Lithonia, GA
Wealth & Wisdom Resource Group
678-526-9300
6860 Main Street
Lithonia, GA
Time Finance
(404) 577-3650
41 Marietta St NW
Atlanta, GA
1st Infinity Tax Services
(404) 880-4667
235 Peachtree St
Atlanta, GA
Gateway Mortgage Group
678-432-3001
2002 Hwy 42 N
McDonough, GA


As hard as it is to sell a construction business outright, it is even more difficult to sell in stages, allowing for a gradual withdrawal by the owner. An employee stock ownership plan, or ESOP, can, in the right circumstances, provide a way to accomplish this goal in a tax-advantaged and non-adversarial manner.

An ESOP allows the company, on behalf of its employees, to use pretax dollars to buy out the owner(s). And, depending on the ESOP's structure, the seller(s) can defer capital gains tax on the sale proceeds — and with certain estate planning can avoid tax altogether.

ESOPs are unique among benefit plans in that the ESOP group can borrow money: A lender loans to the company and the company then reloans the money to the ESOP. The ESOP then buys the selling owner's stock. Of course, the ESOP itself does not have money to repay the loan, so the company makes tax-deductible contributions to the ESOP so the ESOP can repay the lender. In effect, the company can deduct principal and interest on the loan.

The ESOP can borrow money from anyone, including commercial lenders, sellers of stock, or even the company itself, as long as the loan is reasonable and is correctly structured. There is no limit on the term of an ESOP loan other than what lenders will accept (normally 5 to 10 years), and the proceeds from the sale of shares to the ESOP can be used for any business purpose.

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Featured Local Company

A & A Financial Services Inc

(404) 761-1696
3420 Norman Berry Dr
Atlanta, GA

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