Situation: A 100% owner of an S-Corp wishes to be bought out. They are interested in establishing an ESOP and moving the stock from the owner to the employees and new owner of the company.
I seem to remember form somewhere that S-Corps cannot set up ESOP's. I know that the contribution to an ESOP is not deductible by the S-Corp, but can they set up an ESOP?
Any thoughts and sites would be appreciated.