The ESOP Handbook explains the tax and financial
incentives of ESOPs. It begins by explaining
the legislative history of ESOPs, and how implementing
these tax breaks for a business owner is actually consistent
with legislative intent. Certain tax publications only
recite statutes and case law.
This book explains - with diagrams - how the flow of
cash works in certain structures, and then presents other
alternative financial structures to achieve the same result,
for the reader to consider. There are numerous charts,
checklists, and illustrations, including over a hundred
pages of case studies - fully approved by the Internal
Revenue Service, with citations provided.
Employee Stock Ownership Plans (ESOPs) allow all these
things to happen and more. They are many myths and misconceptions
about ESOPs. For example, employees of privately held
businesses do not have to be given the right to vote for
the Board of Directors, and have no rights to examine
the books and records of the corporations.
ESOPs are not well understood as they are involve pension
law, ERISA, structured finance, bank financing considerations,
accounting rules, as well as tax analysis. This book provides
information on all those aspects, as well as how these
things are used in actual practice. It will provide you
with the information you need to consider how to implement
an ESOP for your client, as well as the considerations
involved. Loaded with citations to legal authorities,
this book can be used to support further inquiries.
