Frequently Asked Questions

Employee Ownership FAQs

Common questions about employee stock ownership plans (ESOPs), employee ownership trusts (EOTs), and other forms of employee ownership, from the basics to technical topics.

This FAQ is written primarily for business owners, managers, and advisors involved in setting up or running an employee ownership plan. If you're an employee at an ESOP company looking to understand your own benefits and rights, see our articles on Working at an ESOP Company and The Rights of ESOP Participants.

How long does it take to set up a non-leveraged ESOP?

Non-leveraged ESOPs can usually be set up fairly quickly. They need only plan and trust documents to be drawn up and a valuation to be performed.

For more details, see Selling to an ESOP and Financing the Deal and the ESOP Pre-Feasibility Toolkit.

Link to this FAQ Topic: ESOP Basics & Feasibility

Related Resources

ESOP Tax Advantage Calculator

This calculator illustrates some of the tax benefits afforded to ESOPs. Taking basic company financial information as inputs, it outlines the potential tax effects of an ESOP transaction under various scenarios.

Try the Calculator

Selling to an ESOP and Financing the Deal, 12th Ed.

A detailed guide for owners, managers, and advisors of closely held businesses are who considering a sale to an ESOP.

ESOP Pre-Feasibility Toolkit

A step-by-step guide to evaluating whether an ESOP could make sense for your company.