Employee Ownership Trusts (EOTs)
What is an EOT?
An Employee Ownership Trust (EOT) is a trust that holds shares of a business for the benefit of its employees. EOTs are a succession planning option that allows business owners to sell their company to their employees at fair market value. EOTs are intended to help employees purchase a business without having to use their own personal savings. They allow business owners to leave their company to the people who helped build it, while still benefiting financially.
EOTs offer a tax exemption on up to $10 million in capital gains for a sale to an EOT from 2024 to 2026. EOTs are a good option for companies with strong cash flows in mature industries.
Reach out to us today to see if an EOT might be a fit for your business!
