JMB Davis Ben-David & Philip Stein & Associates Invite you to a seminar entitled:
Preparing to do Business in the U.S.
Practical Solutions to Real Business Issues faced by Israeli Companies
Date: December 11, 2017
Time: 3.00 – 6.00 pm
Location: The Beck Science Center, 8 Hartom Street, Har Hotzvim, Jerusalem
Admission: Free. Pre-registration is required by email: firstname.lastname@example.org or Batya@pstein or by phone: Linda Rada at 02-571-4777. Space is limited.
Parking: Guest parking will be available at The Beck Science Center
The first step to incorporating in the US is to choose the state of incorporation. Delaware is a preferred choice because it is generally perceived as a business friendly state with a minimal annual franchise tax.
The next step is to understand where the company will have tax obligations. Within the US, there are various layers of taxes: federal income tax, state income tax, and sales tax are the most frequently encountered.
While every US company is required to file a federal income tax return, determining whether and where a company is required to file state income tax or if it is required to collect sales tax gets more complicated.
Generally, if a company is “doing business” in a state, it is required to pay tax on income generated in that state. A company is considered to be doing business in a state in which it has established nexus, or a “connection” with the state. Each state has a different threshold for what constitutes sufficient nexus to be considered doing business.
If the company has nexus for sales tax (which can be different than nexus for income tax!) it generally must collect sales tax on sales of tangible property to customers in that state. A determination must be made whether the company has nexus and must collect sales tax for each state in which it has customers. Understandably, this can get quite intricate and there are numerous exceptions to the general rules.
Philip Stein and Associates recognizes the opportunity that the US market represents for our clients and we also recognize the growing trend of state tax authorities conducting sales tax audits in their quest for additional revenue. We counsel our clients about sales tax best practices before making sales to the U.S. market and we assist them in registering for sales tax, filing sales tax returns, as well as represent them in audits and voluntary disclosure proceedings.
Adirah Kamienny-Goldberg, US Certified Public Accountant and Manager of the Hi Tech & Corporate Tax department at Philip Stein & Associates.
Judah Fish, a US licensed tax attorney and Senior Tax Advisor at Philip Stein & Associates.
Jeremy Ben-David, managing partner of JMB Davis Ben-David, licensed Patent Attorney for over 30 years
Dr. Mike Hammer, Head of US IP Department at JMB Davis Ben-David