Learn how ESOPs provide tax benefits and succession planning flexibility, ensuring business stability and employee ownership.
Many closely held businesses have little or no succession plan in place. As a result, the day a founder or primary shareholder leaves the business often results in significant adverse consequences for the company, the employees, and the exiting owner. ESOPs offer transitional flexibility that can facilitate succession planning. An ESOP is a tax- qualified retirement plan authorized and encouraged by federal tax laws. Unlike most retirement plans, ESOPs: • Are required by law to invest primarily in the shares of stock of the sponsoring employer. • Are trusts that hold shares of the business for employees, making them beneficial owners of the company that employs them. • Can provide tax benefits to the company and to the exiting owner(s). Attendees can learn the basics of this valuable tool for business succession in this course and leave equipped with an introduction to ESOPs which can be useful in advising clients on business succession.
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Over 38 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Business Succession Planning Options
- Options
- A Good ESOP
- Candidate Profile
ESOP Tax Benefits for Selling Shareholders
- IRC Section 1042
ESOP-Owned Company Tax Advantages
- S-Corporations and ESOPs
Feasibility Analysis
- Score
- Who Conducts?
- Results
Leveraged ESOP Transactions
- Financing Sale to an ESOP
- Structure
- Effect of Leverage
- Alternatives
Costs and Expenses
- ESOP
- ESOP Compared to Other Business Succession Alternatives
ESOPs Are Retirement Plans
- Defined Contribution Plan
- Participation and Vesting
- Diversification
- Distributions
The Employee Ownership Incentive
- Economic Performance of ESOP Companies
- Recruiting/Retention Tool
- Corporate Governance in an ESOP Company
The Employee Stock Ownership Plan Trust
- Trustee Considerations
- Participant Allocations
The Company Repurchase Obligation
ESOP Participant Voting
- Passthrough Voting
The Regulatory Environment
- Department of Labor
- Internal Revenue Service
- Current Developments, Opportunities and Challenges
Example of a Standard Leveraged - ESOP Transaction
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Why Lorman?
Over 38 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on March 31, 2025.
Call 1-866-352-9540 for further credit information.
- AIPB 1.5
- This program is acceptable for 1.5 CPEC(s) towards the CB designation through the American Institute of Professional Bookkeepers (AIPB).
- AK CLE 1.5
- Alaska attorneys may receive 1.5 hours of continuing legal education for completing this program. Please contact the Alaska Bar Association or go to www.alaskabar.org for details regarding reciprocity with other states.
- AL CLE 1.7
- This course or a portion thereof has been approved by the Alabama State Mandatory Continuing Legal Education Commission for a maximum of 1.7 hours credit.
- AR CLE 1.5
- This course has been approved for 1.5 hours of CLE by the Arkansas CLE Board.
- Arizona CLE 1.5
- The Arizona State Bar does not pre-approve or pre-certify MCLE programs. However, records of this program and attendance will be maintained by Lorman Education Services for auditing purposes. This activity may qualify for up to 1.5 hours toward your annual CLE requirement for the State Bar of Arizona.
- CA MCLE 1.5
- Lorman Education Services is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
- CT CLE 1.5
- Neither the Connecticut Judicial Branch nor the Commission on Minimum Continuing Legal Education approve or accredit CLE providers or activities. This course has been approved for CLE credit in jurisdictions aside from CT and therefore it automatically meets the content and delivery requirements in Connecticut. Credit is based on a 60 minute credit hour and shall be awarded as follows: 1.5 CLE credit(s).
- GA CLE 1.5
- This program has been approved by the Georgia Commission on Continuing Lawyer Competency for 1.5 CLE hours.
- HI CLE 1.5
- This program was approved by the Hawaii State Board of Continuing Legal Education for 1.5 CLE credit hours.
- IL CLE 1.5
- This course was approved for a total of 1.5 hours of MCLE Credit by the Illinois MCLE Board.
- MO CLE 2.0
- This course qualifies for self-study CLE credit in Missouri.
- ND CLE 1.5
- North Dakota CLE policy does not allow for pre-approval of any self-study courses. This course may qualify for up to 1.5 hours of CLE credit.
- NH MCLE 1.6
- NH MCLE does not approve or accredit CLE activities for the NH Minimum CLE requirement. Lorman Education Services believes this Ondemand course meets the requirement of NH Supreme Court Rule 53 and may qualify for CLE credit(s). Program Length: 97 Minutes.
- NJ CLE 2.0
- This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 2.0 hours of total CLE credit.
- NM CLE 1.6
- This program has been approved by the New Mexico Minimum Continuing Legal Education Board for 1.6 hours of credit.
- NV CLE 1.5
- This program has been approved by the Nevada Board of Continuing Legal Education for 1.5 CLE hours.
- NY CLE 1.5 including Areas of Professional Practice 1.5
- This course has been approved in accordance with the requirements of the New York Continuing Legal Education Board for up to a maximum of 1.5 credit hours in the area(s) of Areas of Professional Practice for 1.50 hours. Each hour may be counted only as satisfying one category of credit. Duplicate credit for the same hour of instruction is not permitted. This course qualifies for both established and newly admitted attorneys. Lorman Education- Noggin Guru, Inc. has a financial hardship guideline. Please contact customer service at 1.866.352.9539 for instructions on how to apply.
- PA CLE 1.5
- This Distance Learning program has been approved by the Pennsylvania Continuing Legal Education Board for 1.5 hours of substantive law, practice and procedure CLE credit.
- RI CLE 1.5
- This program has been approved by the Rhode Island Mandatory Continuing Legal Education Commission for 1.5 hours of CLE credit.
- TN CLE 1.62
- This program has been approved as a distance learning format by the Tennessee Commission on Continuing Legal Education for a maximum of 1.62 hours of credit.
- VT CLE 1.5
- This self-study program has been approved by the Mandatory Continuing Legal Education Board of Vermont for 1.5 hour(s) of CLE credit. Please note: Attorneys may only claim 12 credits per compliance period in this format. This course is considered "Non-Moderated Programming without Interactivity".
- WI CLE 1.5
- This program qualifies for 1.5 hour(s) of ondemand CLE through the WI Board of Bar Examiners.
- WV MCLE 2.0
- This program has been approved by the West Virginia State Bar MCLE Commission for 2.0 MCLE hours.
To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
MP3 Download
- AK CLE 1.5
- Arizona CLE 1.5
- CA MCLE 1.5
- CT CLE 1.5
- HI CLE 1.5
- MO CLE 2.0
- NM CLE 1.6
- VT CLE 1.5
- WV MCLE 2.0
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 38 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
Todd Denison
Phelps Dunbar LLP
- Partner with Phelps Dunbar LLP
- Practice focuses on business and tax law
- Counsels corporate and individual clients in various facets of their business operations, including: corporations and partnerships, employee stock ownership plans (ESOP), general tax advices, and trust and estates/estate planning
- Advises closely held companies nationwide on ESOP transactions, from feasibility studies to plan development, document drafting, and financial structuring, while collaborating with banks and benefits counsel to ensure compliance and optimal outcome
- Clients include a regional engineering firm, national advertising agency, regional construction firm, regional stone and interior design firm, and numerous family-owned businesses operating locally, regionally, and internationally
- Frequent speaker and has several publications
- Member of numerous professional and civic organizations
- Achieved the highest rating with Martindale-Hubbell Law Directory
- Mid-South Super Lawyers Rising Stars list, Super Lawyers (2010-2014), Business Organizations (including LLCs and Partnerships) (2019-2025), Tax Law (2018-2025), Trusts and Estates (2018-2025), The Best Lawyers in America
- LL.M. Degree, New York University School of Law; J.D. Degree, University of Montana School of Law; M.A. and B.A. Degrees, University of Montana
- Can be contacted at 251-441-8206 or [email protected]
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Why Lorman?
Over 38 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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