Limited liability companies (LLCs) are a relatively recent form of business organization, but one that has become increasingly popular. LLCs are similar in many ways to S corporations, but ownership is evidenced by membership interests rather than stock.
Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan.
Hiring the experts to help you manage the creation of an employee ownership plan will cost money, but the right experts will save you the hassle, time, and unwarranted risk of trying to figure this out yourself.
There are three traditional ownership succession strategies: sell to an insider, sell to an outsider and "till death do us part." I will discuss each of these traditional options and compare each of them to an ESOP.