Category: Definition

ESOP – On the Positive Side

Existing Stockholders—As detailed above, benefits attainable by business owners through ESOP cannot be matched anywhere else within our tax system—a company’s income can be made to be tax-exempt; stock can be sold without a tax on realized gain; different forms more »

ESOP – The “Down-Side”

Special Limitations and Requirements–ESOPs are subject to special limitations and requirements that may appear to present unsolvable problems, but in actuality, rarely do. The Right to Demand Distribution of Company Stock—First, ERISA provides that ESOP participants have the right to more »

ESOP Dividend Deductions

C corporations can deduct dividends when those dividends are paid on stock that was acquired by the ESOP with stock acquisition debt and are used to (a) pay down that debt, (b) passed through the ESOP to its participants, or more »