Why ESOP plans instead of profit sharing?
I've been thinking about ways to share the cheddar with the employees of my fictional company without commitment. Basically, if the shit hits the fan and mom and dad need something I want to be able to provide for them, but I can't foresee needing an excessive amount of money (fictional money from my fictional business).
What are the benefits of having an ESOP rather than paying livable salaries and profit sharing plan? Unless my fictional company is doing well I can't see myself affording $40k a year on an ESOP.
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