Which of the following is a method through which to effect transfers of a close held business in a tax efficient way?
A)An employee stock ownership plan
B)An employee limited partnership
C)A family limited stock ownership plan
D)Both a and b
E)Both b and c

Question

Quizplus · Accepted Answer

An employee stock ownership plan (ESOP) is a method through which to effect transfers of a close held business in a tax efficient way. It allows qualifying employees to purchase and hold stock in the company, providing a market for the business owner to sell their shares. The sale of stock to an ESOP can be structured as a tax-deferred transaction, resulting in significant tax savings for the selling business owner. The other options listed may have some benefits, but an ESOP is generally considered the most tax efficient method for transferring a close held business.

Which of the Following Is a Method Through Which to Effect