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WEBINAR REPLAY

S Corporation ESOPs - Legal Issues

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This replay was recorded on August 1, 2017.

About This Meeting

S corporations are not taxed directly; rather, taxation is passed through to shareholders. However, to the extent an ESOP owns an S corporation, its share of corporate profits is not taxable for federal, and often state, income tax purposes. (The ESOP trust itself is the shareholder, not the employees in the plan.) Thus, an S corporation 100% owned by an ESOP pays no federal (and often no state) income tax. S corporation ESOPs do not have all the same benefits as C ESOPs; most notably, sellers to an S ESOP cannot defer capital gains taxes on the sale, and corporate ESOP contribution limits can be somewhat lower. There are also special rules to prevent S corporation ESOPs from being used primarily to benefit a small number of people. Nonetheless, S corporation ESOPs can be a tremendous competitive advantage and are expanding at a rapid rate.

This Webinar covers the legal issues you need to know about S corporation ESOPs.

Program

Michael A. Abbott
Gardere Wynne Sewell LLP

Presenters

Michael A. Abbott

presenter photologo

Gardere Wynne Sewell LLP

Michael is a leading advisor to companies, executives and fiduciaries with sophisticated employee benefits and executive compensation needs, particularly in the tech, energy and private equity sectors. His nationwide practice focuses on ERISA and related tax-compliance matters involving various aspects of employee benefits including, cross-border tax issues, tax-qualified plans including ESOPs, nonqualified deferred compensation plans and welfare benefit plans, including the Affordable Care Act. Michael also has extensive experience in the design, implementation and administration of employee stock ownership plans and has been involved in numerous ESOP transactions representing corporations, selling shareholders and fiduciaries.