Author: Darren Gleeman

[ad_1] By: Darren Gleeman, Managing Partner of MBO Ventures An ESOP is a way to transfer ownership of a company, letting employees become the owners instead of selling to outside investors or competitors. Here’s the basic idea: the company borrows money to buy out the current owner’s shares. The owner gets the money from this sale and can avoid paying capital gains tax on it right away. The company itself benefits because it doesn’t have to pay income taxes moving forward. Over time, the company pays off the loan it took out, and the employees end up owning the shares,…