S Corporation ESOP

franfields · May 2002

We are moving from C Corporation to S Corporation. We are an ESOP. I read on an Interactive Introduction to ESOP's that an S Corp cannot have more than 75 participants. Is that true?

2626987 · May 2002

We are also an ESOP company. I am also new to this program.
I have only been with the company 4 months so I have a lot to
learn. I am trying to gain information about ESOPs myself.
However; I do know that our company has more than 75 participants
unless there is something I do not know?

Transplant in Indy

franfields · May 2002

Are you in a C Corporation or an S Corporation? That is the issue I am researching.

Doug · May 2002

We are an S corporation in Florida, Texas, and North Carolina, with about 700 people in our ESOP. The reference you mention is that the company is limited to 75 shareholders as an S corporation. The ESOP is considered to be one shareholder. So if you have other owners who have shares, you can have up to 74 of them along with the ESOP itself.

franfields · May 2002

Thank you for the clarification. I feel better now.

S Corporation ESOP

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