Oxburgh Row Financial Blog

Employee Stock Ownership Plans are S-Corporations that can grant business owners significant tax benefits.

Most research about ESOPs focuses on the benefits to employees. Many studies, for example, show that a sense of ownership can be a powerful way to help incentivize workers.

Tax savings are among several potential benefits to business owners contemplating the establishment of an ESOP. As an S corporation, an ESOP could allow a business owner to conserve operational cash through the astute application of favorable tax laws. That factor could potentially reduce the amount of federal income taxes a business owner would ordinarily have to pay as the operator of a traditional C Corporation.

Don’t be surprised to see a veritable flood of companies choosing to set up an ESOP over the next few years. It’s one business tool that can have a significant positive impact on both a company and its employees. Questions about ESOPs? We’re here to answer them!