Tax break on businesses sold to employees takes step forward provides an update on the status of Iowa's Employee Stock Ownership Plan (ESOP) Initiative for encouraging interested Iowa business owners to Sell to an ESOP.  The bill was approved by a subcommittee of the House's Ways and Means Committee and will now be considered by the full committee.  The article discusses the fiscal impact of the legislation: 

S Corporation ESOP companies are not subject to income taxation (federal and most states), increasing cash flow and providing the company with a competitive advantage.  Let me say that first part again.  S CORPORATION ESOP COMPANIES ARE NOT SUBJECT TO INCOME TAXATION!

The January 17, 2012 Employee Ownership Update is online and discusses the following:  

Every small business owner will face a time when they will need to sell their company.  When a small business is put up for sale to a third party, particularly in rural areas, local jobs and the other benefits are at risk.  Since an acquiring business may not have any ties to the local community, they could liquidate the assets of the company or relocate the company operations to a different location.  This obviously has negative consequences for the employees and the community as a whole. 

Iowa Governor Terry Branstad recently included Selling to an ESOP as one of his 2012 initiatives in his 2012 Condition of the State address:  

Washington Affects Employee Ownership with a recap of the recent legislation proposed by The 112th United States Congress to support and expand employee ownership and make ESOPs the “exit vehicle of choice for small business entrepreneurs”:

The December 15, 2011 Employee Ownership Update is online and discusses the following:  

If you paid any ESOP or other qualified retirement plan benefit payments last year you will have to prepare and file some government forms. The General Instructions for Forms 1099, 1098, 5498, and W-2G provides guidance on how to prepare and file the forms: