Insights | SG&F Law
News & Events

Does an ESOP Mean Losing Control?

Many business owners who are considering an ESOP (Employee Stock Ownership Plan) fear that their influence and control will disappear when they sell their shares to the ESOP. After devoting the effort, energy, resources, blood, sweat and tears required to build a successful business, owners often struggle to “let go.” Or they want to continue participating in discrete elements of the business. Or they need a gradual transition to ensure that the business will survive and thrive without their full time ... Read more

Selling Private Company Stock Without Paying Taxes: It Is Possible!

A valuable opportunity afforded to sellers of privately held company stock to an Employee Stock Ownership Plan (“ESOP”) is the ability to defer the capital gains tax on the sale of their company stock. This article will provide a basic overview of the requirements that must be met by a Company and its selling shareholders in order to determine whether the sale of company stock to an ESOP and the selling shareholder’s election to defer recognition of capital gains on the sale ... Read more