Employee Stock Ownership Plan (ESOP)  

ESOPs (Employee Stock Ownership Plan) are a highly tax-advantaged option for business owners looking to retire or create an exit plan for themselves while benefiting and protecting their employees and communities. ESOPs may also be used as a mechanism to incentivize and reward employees who have helped grow the business. Our attorneys are proud to assist in all areas of ESOP’s, from designing and drafting qualified ESOP plans, negotiating ESOP sale transactions, and aiding with ongoing compliance and administration.   

Owner and Business Representations 

We often represent private companies and their owners as they consider setting up an ESOP, and help with nearly all stages of the process, including structuring transactions, plan formation, negotiating financing terms and structure, tax planning, collaborating with other advisors, experts, and independent trustees, setting up governance, and all the issues that come up in any sale transaction. There are many incentives and tax benefits associated with an owner selling to an ESOP. There are also significant tax savings to the ESOP-owned company going forward, providing more security, profits, and opportunities to the employees. ESOPs are subject to specific tax and employment rules, and we have experience working with employers to ensure compliance and correct administration errors. Whether you are just considering whether an ESOP might be right for your company or have been an ESOP for years, our team is ready to provide the right balance of bold and wise decisions to keep your ESOP business growing in your community.  

Trustee Representation  

BrownWinick’s ESOP team also serves as counsel for ESOP trustees, providing guidance regarding statutory and regulatory compliance, fiduciary duties, negotiating and reviewing transactions that require ESOP trustee approval, and otherwise addressing issues that come up during the course of a trustee’s duties. We have represented ESOP sponsors and fiduciaries in connection with Internal Revenue Service Audits, Department of Labor Investigations, voluntary corrections, and litigation. Our attorneys can help make sure things are done right with the ESOP, helping the company grow and you sleep at night. 

ESOP Attorneys