Benefits Of The ESOP To C Corporations

• Stockholders can sell all or a part of their company stock to the ESOP without losing control of the business.

• Sell company stock to the ESOP and pay no income taxes.

• Company can borrow from a bank or other commercial lender for expansion or other corporate projects and have a tax write off of both principal and interest on the loan.

• Create a meaningful retirement plan.

• Proven motivator for employees to be more productive workers because of being employee owners - ESOP shareholders.

• Convert a profit sharing plan into an ESOP and use existing funds to purchase company stock.

• Owners can perpetuate the business into the hands of "key" employees or family.

• Can acquire another company with pre-tax dollars.