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What could employee ownership mean for you?

Whether you're thinking about the future of your business, helping a client explore their options, or working to build wealth in your community, start here.

I'm a Business OwnerI'm an AdvisorI'm a Community Advocate

Find Your Starting Point

Plan My Exit

Employee ownership is becoming a preferred exit strategy for successful business owners. Exit on your terms, get liquidity from your hard work, and transfer ownership to the people who know the business—your employees.

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Reward My Employees

Employee ownership gives businesses another way to reward and retain top talent. Give employees a stake in success and strengthen their commitment to the company.

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Help My Clients

Employee ownership gives advisors another path to help clients build value, strengthen their businesses, and create lasting value for employees and communities.

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Strengthen My Community

Incorporating employee ownership into community strategies can strengthen local economies, build worker wealth, and create more resilient, inclusive communities.

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What is Employee Ownership?

Employee ownership gives the people who work in a business a stake in owning the business. 

Instead of a company being owned entirely by one person, a family or outside investors, employees can own part or all of the business. That ownership can take different forms, and it can shape everything from how employees share in the value they help create to how decisions are made, and how the business passes from one generation of leadership to the next.

Employee Stock Ownership Plan (ESOP)

  • Recommended for companies with 40+ employees and $2M+ in revenue
  • Tax benefits for the seller, the employees, and the business
  • Highly regulated by the Employee Retirement Income Security Act and the Department of Labor
  • No cost to employees who are given shares at retirement

Worker-Owned Cooperative

  • Works for any size business
  • Tax benefits for the seller and the business
  • Governance is democratic with workers voting on board members, making up the majority of the board, and making major decisions in alignment with agreed-upon bylaws
  • Employees have a small financial buy in, giving them a greater sense of ownership
  • Ownership is equal amongst employees
  • Lower setup and administrative costs

Employee Ownership Trust (EOT)

  • Ensures perpetual ownership by employees
  • Free to employees
  • Flexible structure allows design specific to the needs of the business
  • Lower setup and administrative costs

Employee Stock Ownership Plan (ESOP)
Worker-Owned Cooperative
Employee Ownership Trust (EOT)
Suitable
company size

40+ employees,
$750K EBITDA

Any size

Any size

Tax benefits
to selling owner

Can opt for §1042 deferral of gains

Can opt for §1042 deferral of gains

No

Tax benefits
to EO Business

S Corp tax avoidance

Tax deduction for patronage

Tax deduction for profit-sharing

Setup and ongoing costs

Any size

Low

Low

flexibility
of model

Within ESOP perameters

Within coop perameters

Highly flexible

Employees buy their shares

No

✔

No

Employee role in strategic decision-making

Optional

✔

Optional

Partial EO
Transition

✔

✔

✔

Profit-sharing
built in

No

✔

✔

See What's Possible

Still Have Questions?

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