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This webinar will explore the theories advanced in legal cases, potential defenses to such claims, how courts have handled these claims in recent cases, and considerations for structuring these types of payments to mitigate risk.

Many ESOP companies in the United States are organized as 100% owned S corporations and therefore do not have federal or state income tax obligations. However, even 100% S corp ESOPs have other tax obligations that can be reduced or eliminated thanks to economic development incentives.

Get some advice on how to respond to unsolicited offers for your business.

ESOP fiduciaries and others responsible for the annual ESOP appraisal need to understand the interaction between their companies' S corporation statement and the valuation. The benefits of being an S corporation ESOP add several layers of complexity to the annual valuation. For example, ESOP shares are valued by law at the price a "willing buyer" would pay, but there is no guarantee that this hypothetical willing buyer would be an S corporation or have an ESOP. Does that make it impossible for the appraisal firm to consider the S corporation ESOP tax shield? If not, how should it affect the annual valuation? Does the appropriate valuation method change for initial transactions, ongoing operation, or in evaluating a potential sale of the company? What's the difference between valuation for a 100% ESOP-owned S corporation and one where the ESOP has a smaller stake?