Your company has numerous options when it comes to providing benefits to its employees. You may have asked around to try to figure out what would not only benefit your employees, but also your company. You want to foster an atmosphere in which your employees feel invested in its success, and that's when you came across the employee stock option plan.
An ESOP provides advantages for your employees, but it also allows the company a way to purchase shares owned by an owner who leaves the company. It may allow it a way to borrow money to purchase those shares and repay the loan as tax-deductible contributions to the plan. You may already know the business advantages of setting up an ESOP, but may not yet understand the tax benefits gained through this type of plan.