Key reasons that a Sub-S ESOP is right for many of my clients and quite possibly me
#1 The benefits of a outright sale, but still with control
Sub-S ESOP’s are a powerful exit strategy for mid-market company owners – and a preferred alternative to selling to an outsider!
#2 Think tax-exempt cash flow!
Sub-S ESOP’s are becoming the Succession Strategy of choice for Owners.
#3 Yes it’s hard to believe but true
Owners can extract the full value of the company, give employees ownership, and maintain control and their legacy; all while using tax dollars!
#4 Shift taxes from a burden to a tool for succession planning and growth!
#5 Employees love working for Sub-S ESOP companies
Sub-S ESOP’s out perform their pier groups and employees have a real sense of ownership; all resulting in excellent long term retention tool
#6 Congress endorsed and support Sub-S ESOP Legislation
Passed taxed differed law in 1997