Employee Ownership Trust (EOT)
A Smart Succession SolutionLooking to transition your business while ensuring long-term stability for your employees? Setting up an Employee Ownership Trust (EOT) allows business owners to sell their company to their employees—without requiring them to purchase shares directly. This trust-based model provides a seamless succession plan, allowing employees to collectively own and manage the business while maintaining its legacy.​With recent tax incentives and flexible financing options, EOTs offer a cost-effective way to transfer ownership while fostering a culture of engagement and shared success. Our team ensures a smooth setup process, handling everything from trust formation to compliance with Canadian tax regulations. Secure your business’s future—empower your employees with ownership today!
Features
Benefits
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Employee-Owned Structure – A trust holds company shares on behalf of employees, ensuring collective ownership.
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No Direct Share Purchase Required – Employees don’t need to buy shares personally; the trust manages ownership.
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Qualifying Business Transfer (QBT) Eligibility – Allows business owners to transfer ownership while benefiting from tax incentives.
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Fair & Transparent Governance – Employee beneficiaries have a say in key decisions, ensuring democratic business management.
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Tax Advantages & Deferral Options – Potential capital gains tax exemptions and extended repayment periods for financing the transition.
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Long-Term Business Stability – Encourages sustained company growth with engaged employee-owners.
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Seamless Succession Planning – Business owners can exit without selling to external buyers, preserving company values and culture.
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Increased Employee Engagement – Ownership fosters a stronger commitment to company success.
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Financial Flexibility – The trust can finance the buyout over time, reducing upfront costs for employees and sellers.
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Improved Business Performance – Employee-owned businesses often see higher productivity, retention, and innovation.
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Preserves Jobs & Community Impact – Keeps decision-making local, maintaining jobs and business continuity.
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Access to New Tax Incentives – The first $10 million in capital gains may be exempt when selling to an EOT (currently through 2026).