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How ESOPs Work

Own the Success You Help Create

Employee Stock Ownership Plans (ESOPs) are a widely adopted option for promoting employee ownership in the United States. The National Center for Employee Ownership (NCEO) estimates roughly 6,500 ESOPs covering almost 14 million participants. These numbers represent businesses across industries, including manufacturing, construction, and professional services. Companies that adopt ESOPs are often privately held, although some publicly traded companies use ESOPs.

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Who Funds an ESOP

The employer funds the ESOP with tax-deductible contributions to purchase company shares. It operates through a trust under the direction of a trustee or another named fiduciary. An ESOP must comply with the requirements set forth by the Internal Revenue Service (IRS).

When we say experts, we mean experts.

Below is a list of accredited affiliations and associations our audit team work with on a regular basis.

AICPA-Employee Benefit Plan Audit Quality Center
Florida Insitute of Certified Public Accountants
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National Association of Certified Valuators and Analysts
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Phillip Hayes, The ESOP Guy

Journey to an ESOP:
THE ESOP GUY

In “The Journey to an ESOP,” Partner, Phillip Hayes addresses ESOPs from a business owner’s perspective.

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