Basics
7 questions
What an EOT is and why owners choose one
- What is employee ownership?
- What is an Employee Ownership Trust (EOT)?
- How does employee ownership work?
Resources
Straight answers about Employee Ownership Trusts, from how they work to how they compare.
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What owners ask us most often
Employee ownership is a succession planning strategy that gives employees a meaningful stake in the business — not just financially, but also in its culture and long-term success.
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An Employee Ownership Trust is a purpose trust that holds some or all of a company’s shares for the benefit of its employees.
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No. Employees aren’t required to contribute cash or take on debt to participate in an Employee Ownership Trust.
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Employee ownership generally involves transferring ownership internally rather than selling to an outside buyer, often financed with seller financing or loans repaid from company earnings.
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There are currently no federal tax programs for EOTs in the U.S. Some states, like Colorado, have introduced incentives. Cost savings can also come from lower administration than other models.
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7 questions
What an EOT is and why owners choose one
6 questions
How EOTs compare to ESOPs, co-ops, and a third-party sale
2 questions
What changes for your team, and what stays the same
See all 2 in Employees →2 questions
Valuation and where the money comes from
See all 2 in Financing →8 questions
Timeline, steps, and staying involved
1 question
Tax treatment and incentives
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