Employee Stock Ownership Program (ESOPs)
What is it? Employee ownership is a business operation in which employees own a significant percentage of company stock.
There are more than 10,000 such companies nationally, employing over 10 million workers. Michigan has more than 300 employee-owned corporations.
Services are available to any company, individual or organization interested in employee ownership, including:
- For qualified companies, general consultation and information on employee ownership program options, including ESOPs, ESOP financing, and employee buyouts
- Referral to other technical assistance and training programs available through the Michigan Economic Development Corporation and other resources
- For general information on ESOPs, visit the ESOP Association website.
Who's eligible? Businesses with at least 25 employees and a payroll of $500,000 are the most likely candidates for an ESOP. However, smaller firms may also be appropriate for employee ownership. Tax law changes have made ESOPs especially attractive to Subchapter S Corporations.
For more information, contact the Traverse Bay EDC.
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