What is ESOP?
An acronym for employee stock ownership plan. Such plans acquire shares of the employer for the benefit of employees usually through contributions of the employer to the plan. The purpose of such plans is to acquire ownership of shares of the employer corporation for the benefit of employees. This is usually accomplished through contributions of the employee to the plan.
Related Questions
- Newly formed S Corp and newly formed ESOP. The S Corp buys assets from LLC to continue operating the business as S Corp. Does IRC section 1239 apply or is the ESOP NOT a related party? Who really owns the ESOP at the start?
- Announcement 2005-80 states that Management S Corporation ESOP transactions are eligible for settlement under the initiative. What abuse was involved in those transactions?
- How will distributions from the ESOP be treated?
