Description
The Sale of Stock in a Closely-Held Business to an ESOP - 2010 Video Webcast
3.5 MCLE credits
An ESOP provides a highly tax-efficient vehicle for a business owner to sell all or a portion of his business that may be otherwise illiquid or has no established market, thereby permitting the business owner to diversify his asset holdings and significantly reduce investment risk. An ESOP is also an employee benefit plan that allows a business owner to attract and retain key personnel. Alone among qualified employee benefit plans, an ESOP can also borrow money from or on the credit of the employer, provided the ESOP uses the money to buy employer stock.