Small Business Ownership Succession: The Cooperative Solution
Author(s):
Northcountry Cooperative Foundation
A sale to employees can provide an owner with significant tax breaks. Because of the IRC §1042 Capital Gains Rollover, business owners who sell at least 30% of the stock in their
C-Corporation to an employee-owned cooperative can roll over the proceeds from the sale into qualified replacement securities and defer payment of any capital gains tax indefinitely.