Educational only. Not legal, tax, or financial advice. NewHands is not a broker-dealer. Verify state rules with counsel before you rely on them.
Employees, ESOPs, and family transitions
Options that are not a sale to a stranger, with the official places to read the rules.
This is educational. It is not legal, tax, or ERISA advice.
An employee stock ownership plan is a retirement plan that can own company stock. The IRS describes the tax characteristics. The Department of Labor describes fiduciary duties. Both change with the facts of the company. NewHands does not administer plans and does not claim a firm in the directory can.
A family transition can be a sale, a gift, or both. The price, the note, and who controls decisions after you leave should be written down. A handshake that "the kids will figure it out" is how the busy season becomes a dispute.
Either path can sit next to a third-party sale of a minority stake. That is a securities question for counsel if you offer interests to more than a small circle.
If you are only exploring, the readiness checklist is enough. If you are choosing, hire a CPA who has closed one of these and a lawyer in the state where the company is organized.
Sources
Free to read. An account is only for saving a search or a listing.