What is Employee Ownership?

What is Employee Ownership?

Employee ownership is a business model where a company’s employees profit from the company’s success. It can take many forms, ranging from simple grants of shares to highly structured plans. The most common forms of employee ownership are profit-sharing, phantom stock, cooperatives, and employee stock ownership plans.

Employee ownership offers owners a way to preserve and pass down their legacy through a ready, willing, and able buyer for their business. Owners also avoid the expense of having to pay a broker fee to sell the business and can offer substantial federal tax benefits depending on how the deal is structured.

Other benefits of employee ownership include:

  • attract and retain top talent
  • improve wages and benefits
  • increase worker productivity
  • provide an exit strategy for owners
  • tax benefits

If you are interested in learning more about becoming an employee-owned company, set up an appointment with our Employee Ownership Consultant. The consultant can also connect you with vetted service providers such as lawyers, accountants, and financial service providers.

Learn More about the Colorado Employee Ownership Office


Colorado Employee Owned Company

Colorado recognizes the value of employee ownership, no matter what type of employee ownership model your business has. If your company is headquartered in Colorado, already offering employee ownership to at least 20% of your employees, we encourage you to register as a Colorado Employee Owned Company.