How do you set up an ESOP trust?

An ESOP provides an opportunity for a business owner to sell some or all of their ownership interest to their employees. The seller and the company work with a legal and financial advisor to determine the feasibility of the ownership transition and how best to structure the transaction. The company establishes an Employee Stock Ownership Plan and Trust and hires a trustee. The trustee works with their legal and financial advisors to negotiate the purchase of shares from the selling owner. In the end, the selling owner is paid a fair price for the business they built, and employees have a retirement benefit that provides them a stake in the success of the company.