Let’s start here: Companies with employee stock ownership plans don’t pay federal income tax on the plan’s share of the profits. That’s right: if the ESOP owns the whole company, it pays zero income tax. It sounds too ridiculous to be true, but it’s true. And it’s not a loophole. It’s a deliberate attempt to encourage employee ownership.
Which raises an obvious question: If ESOPs are so great, why aren’t there more of them? To address that question, I’m hosting a webinar conversation on Tuesday that will feature two business owners who have taken the leap and one who is open to the possibility. Joining me will be Jim Kalb, who has implemented an ESOP at Triad Components Group in San Diego; Jeff Taylor, who has implemented an ESOP at Crafts Technology in Chicago; and Jay Goltz, who has thought about it for his Chicago business, the Goltz Group—but has lots of questions.
To prepare for the conversation, I’d love to hear from you. If you have experience with an ESOP, tell us in comments what you think and whether you’d recommend it. If you’ve thought about it but hesitated, tell us what stopped you. If you just have questions, tell us what they are.
And please join us Tuesday for the live webinar.
For your security, we need to re-authenticate you.
Click the link we sent to , or click here to log in.