If you are a business owner, you may be overlooking one of the most powerful and time-tested succession and ownership transition tools available: the Employee Stock Ownership Plan (ESOP). ESOPs have long been attractive for their unique tax advantages and ability to reward employees, while preserving a company’s legacy. For example, in certain structures, such as a 100% ESOP-owned S corporation, companies can operate largely free of federal income tax, creating a powerful cash-flow advantage.