ESOP Technical Issues Web Seminar – October, 2011

Below you will find the links to watch each of the Technical Issues Webinar Sessions On-Demand: Session 1: Introduction What is an ESOP? History of ESOPs CLICK HERE TO WATCH SESSION 1 Session 2: Retirement Plan Basics Qualified vs. Nonqualified plans Types of Plans CLICK HERE TO WATCH SESSION 2 Session 3: Basic ESOP Transactions Prefund Stock Contributions Leveraged ESOPs Section 1042 Transactions CLICK HERE TO WATCH SESSION 3 Session 4: Plan Operation Features Eligibility Requirements Participation/Benefit Allocations Vesting Distributions CLICK HERE TO WATCH SESSION 4 Session 5: Repurchase Obligation Repurchase Liability Studies Funding the Repurchase Obligation CLICK HERE TO WATCH SESSION 5 Session 6: Administration/Recordkeeping Disclosure Requirements Administration Procedures Administration Pitfalls Lost Participants Lost Beneficiaries CLICK HERE TO WATCH SESSION 6 Session 7: Special Problem Areas of Administration Contributions in Excess of 415 Limits Excess 401(k) Deferrals CLICK HERE TO WATCH SESSION 7 Session 8: Accounting Issues Balance Sheet ... Read More..

Legislative Information: Pro-ESOP Bill — H.R. 1244

H.R. 1244, the “Promotion and Expansion of Private Employee Ownership Act of 2011,” was introduced March 29, 2011by a bi-partisan group of key members of the House Ways and Means Committee: Congressmen David G. Reichert (R-WA), Ron Kind (D-WI), Charles W. Boustany, Jr. (R-LA), Earl Blumenauer (D-OR), Erik Paulsen (R-MN), and Bill Pascrell (D-NJ). “This bi-partisan declaration of support for employee ownership through the ESOP (employee stock ownership plan) model among privately held companies, especially by the popular S corporation business model, is very impressive,” stated ESOP Association President J. Michael Keeling. H.R. 1244 will: 1.) permit owners of S stock to sell the stock to an ESOP and defer the capital gains tax on his/her gain if the proceeds are reinvested in the equities of U.S. operating corporations as owners of C corporations stock have done under IRC 1042 since 1984; 2.) permit lenders to S corporations with 50% ... Read More..

Great Falls Business Owners Explain "ESOPs"

Local business owners say they’re spreading the wealth in Great Falls by offering long term employees stock ownership plans or ESOP’s. It’s a structure that is set up and its federally recognized, so the employees are then part of a trust that then owns either a 100% of the company or some portion of the company,” said Sletten President Erik Sletten. Today at Sletten Construction company, ESOP’s were the main topic of conversation — that and pie. Beyond just being a gluttonous getaway from work, the event used pie as a delicious symbol for an ESOP or an employee benefit plan that turns the employees of a company — into owners. You can read the rest of the article at KFBB.com http://www.kfbb.com/news/local/Great-Falls-Business-Owners-Explain-ESOPs-132662038.html ... Read More..

Options and Alternatives for Structuring ESOP Transactions Webinar

Click here to begin the presentation To download a pdf of the presentation slides, click here Program Agenda Valuation Considerations Sell Now Or Sell Later? Tax Considerations Pay Uncle Sam Now Or Pay Uncle Sam Later? To Participate In Esop Or Not To Participate? Financing Considerations To Borrow Or Not To Borrow? To Lend Or Not To Lend? Fiduciary Considerations To Serve As An Internal Fiduciary? Appointing An Independent Fiduciary Control Considerations Whether Or Not To Sell A Controlling Interest? Incentive Plans For Key Employees To Motivate Or Not To Motivate? Illustrative Case Histories ... Read More..

Read about the Cal-Tex Protective Coatings ESOP

Read the original posting at the Cal-Tex Website Cal-Tex is 97% employee-owned through an Employee Stock Ownership Plan (ESOP).As the 2011 Grand Prize Winner of theNational Center for Employee Ownership’s Innovations in Ownership Award and the 2011 ESOP Association’s Best Communications Award (Small Company), Cal-Tex is committed to providing a company structure that will benefit the employee and the customer. If you are considering becoming a Cal-Tex employee or customer, consider the benefits of being a part of a company that is 97% employee-owned and 100% dedicated. What is an ESOP?  An ESOP is an employee benefit plan in which the company offers its employees stock, and thereby, they become partial owners of the company itself. Although some ESOPs require their employees to purchase the company’s stock, Cal-Tex provides its employee owners with their shares without charge. Our ESOP benefits the company, its employee owners and its customers. Benefits of an ESOP to ... Read More..

NCEO's: Employee Ownership Update for Oct. 3rd, 2011

Topics Covered: Loren Rodgers October 3, 2011 Two M&A Transactions at MYI in One Week Documentary in Progress Department of Labor to Re-Propose Fiduciary Regulation Click here to read the the update at the NCEO website ... Read More..

ACG Kentucky panel talks about benefits of ESOPs

Click here to read the original article at bizjournals.com For business owners who want to cash out but still oversee the direction of the company and take care of their workers, an employee stock ownership plan might be the best bet. That was the message from panelists Tuesday morning at the monthly meeting of ACG Kentucky, the local affiliate of the Association for Corporate Growth. Many entrepreneurs get caught up in the tax benefits of ESOPs, but sellers have to consider their goals, said Alan Taylor, a partner in Louisville accounting and consulting firm BKD LLP. “If you just want to cash out and go to the beach, there would be other transactions that would be better,” he said. ESOPs serve as retirement plans for employees. An ESOP, controlled by a trustee, buys all the shares of a company. Then, company profits are placed into accounts for employees, with payouts based on ... Read More..

Consider an ESOP as a Better Alternative When It Comes Time to Exit Your Business

(Why Selling Your Stock to an ESOP is Better than Selling to a Third Party) If you are the owner of a successful decorative plumbing or hardware business, sooner or later you will face the prospect of having to exit the business, either because you wish to retire or because you wish to cash in the value of what you have built up and pursue other interests. ... Read More..

National Van Lines Becomes ESOP-Owned

National Van Lines Inc. said it has changed the company’s structure, selling itself to an employee stock ownership plan entity. The third-generation, family-run business said it has been working on transitioning to an ESOP-owned S Corp. structure since July 2010 effort to “find an ownership and liquidity succession plan that did not disrupt the culture or the people.” The ESOP structure gives National Van Lines with tax savings, improved employee benefits and financial flexibility, the Broadview-based company said in a press release. Founded in 1901 by F.J. McKee, National Van Lines began in the Chicago area as a one horse and wagon moving service and expanded to a nationwide fleet of trucks. McKee’s granddaughter, Maureen Beal, is the company’s chief executive and one of its primary shareholders. Below is a ESOP training video they created for their employees: ESOP Training Presentation Video from National Van Lines, Inc. on Vimeo. ... Read More..

Ten Steps to a Successful ESOP

Employee Stock Ownership Plans (“ESOPs”) are federally qualified employee benefit programs governed by U.S. law. Since our president and founder, John Menke, wrote some of the original ESOP legislation in 1974, more than 25 additional laws have been passed to promote and broaden the benefits of ESOPs. In general, ESOPs offer owners of companies tax efficient means to sell all or part of their shares to their employees, on a timeline of their choosing. ESOPs have the added benefit of energizing employees to increase sales and profits as these employees become “owners.” Shares sold to an ESOP are held in a trust: the employees receive beneficial ownership, while and in most instances the selling shareholder retains control. The formation of an ESOP does not preclude the company from going public or being sold at a later date. Below are ten steps to understanding, designing and implementing an ESOP that is ... Read More..

ESOP Companies Report Positive 2010 Even Amid Slow Economic Recovery

WASHINGTON, Sept. 14, 2011 /PRNewswire-USNewswire/ — Results from the Employee Ownership Foundation’s 20th Annual Economic Performance Survey of ESOP (employee stock ownership plan) companies that are members of The ESOP Association show that ESOPs, while not immune to economic developments beyond their control, have seen an upturn over the past year. The survey shows ESOP companies, by significant percentages, continue to have increased share value, better productivity, and overwhelming support among leaders of the companies. Since the survey’s beginnings 20 years ago, and the case in all the years the survey has been conducted, even in 2009, a very large majority, 92.2% of survey respondents, reported that creating employee ownership through an ESOP was “a good business decision that has helped the company.” In addition, 72.9% of respondents indicated the ESOP positively affected the overall productivity of the employees. In terms of profitability and revenue, both were up from previous ... Read More..