Business

Steps for creating business in Israel

Organizational options

1. Self-employed עצמאי
2. Working under aegis of agency like Yeul-Sachir
3. Partnership שותפות
4. Company (corporation) חברה

All options but "company" have the downside of unlimited personal liability in case of lawsuits. But "company" has the downside of being much more complex to set up and maintain.

Setting up as atsma'i is fairly easy: create a tik at:

• Verify with local gov't (iriya) whether a business license is required
• Get legal advice regarding form of business and requirements, contracts
• Open tik at VAT מע"מ
• Open tik with Income Tax מס הכנסה
• Open tik with National Insurance ביטוח לאומי
• Meet with accountant to consult about reporting and collection.

Potential problems with atsma'i status:

• Subject to US self-employment tax (Social Security)
• No insulation from liability
• More difficult to raise investment capital

Links

• How-to of starting a business in Israel
• NBN Entrepeneurs Forum
• NBN Business Directory
• MATI
• Ahavat-Israel Small Business info