The Ohio Employee Ownership Center, a non-profit outreach center of Kent State University, supports the development of business across Ohio and around the world by its efforts that are proven to save jobs, create wealth, and grow the economy. The OEOC's work rests on a simple philosophy: broader ownership of productive assets is a good thing for employees, communities, and our country.
The OEOC provides technical assistance, training, & outreach to the business community in 4 major areas:
1) To business owners looking to exit their business;
2) To owners interested in selling their business to their employees;
3) To employee groups, local governments, and community groups seeking to avoid business shutdowns and job loss in their communities; and
4) To existing employee-owned companies, designed to help them be better employee-owned companies.
Our website can be found at http://www.oeockent.org
Questions? Contact the OEOC at oeoc@kent.edu
A group of North American cooperative organizations are hosting a conference on business succession planning and employee ownership in Quebec City from October 11-13. Roy Messing from the OEOC will be participating in a number of events during the 3 days.
Interested? Find out more here.
A Bill has been introduced in the U.S. Senate that, among other things, will make it easier for companies to convert into S-Corp ESOPs. A press release from Employee Owned S Corporations of America provides some details. Some important quotes:
The bill eliminates barriers that businesses and their owners currently face in establishing a new S corporation ESOP or expanding the employee-ownership stake in an S corporation. Congress created the S corporation ESOP structure to encourage and expand retirement savings, giving more workers in private companies the chance to own their companies through an ESOP qualified retirement savings program. A similar bill, currently endorsed by 18 Republicans and 18 Democrats, was introduced earlier this year in the House of Representatives as H.R. 1244...
...The S corporation ESOP structure accomplishes exactly what Congress intended it to do by creating retirement security for millions of American workers in all 50 states. A study from University of Pennsylvania shows that S ESOP employees have retirement account balances three to five times higher than the average 401 (k) or other defined contribution plans and that S ESOPs generate $14 billion in new savings each year for their workers beyond what they otherwise would have earned, offering greater job stability and job satisfaction. According to a Georgetown University report, S ESOPs have been better able to weather economic downturns, preserve jobs and, in the case of the recent recession, have grown wages in comparison to their non-S corporation ESOP counterparts.
An S-Corporation that is owned 100% by its employees through an ESOP is a 100% income tax free entity.
The bill was introduced by Republicans Pat Roberts and Olympia Snowe and Democrat Ben Cardin and mirrors House Bill 1244 that was introduced earlier this year. The House Bill has been endorsed by 18 Democrats and 18 Republicans.
