company shares as investment

[Guest nipa1]

An owner of a s-corp would like to purchase private shares held by an outside party in his company and then title the shares under the name of the plan. I do not think this can be done based upon what I have read which states ownership of S-Corp stock is prohibited in a qualified retirement plan other than an ESOP. What would happen if the owner set up a LLC? Could the shares be bought by the LLC and then transferred to the participant's account under the s corp plan?

Thanks for any input!