How Retiring Shareholders Can Divest Completely Tax-Free

Contact Request an Appointment   If you’re a retiring shareholder who wants to sell your company stock to younger employees or future company leaders, an Employee Stock Ownership Plan is one the most tax-efficient ways for you to sell your business and retire. Let me explain with an example. Say you have a corporation and you’re the majority stockholder and you’re getting ready to retire.There are two young stockholders in the company who intend to buy your stock when you retire. They may pay you with corporate earnings or borrow from the bank, but one of the biggest things that gets overlooked in this scenario is the tax cost of buying out a retiring shareholder. For simplicity’s sake in this … Read More