Companies and Corporations

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Transition to a Limited Liability Company

Should I be self employed or start a company? What’s the difference?

Did you know that the income tax rate in Israel is about 50% for every shekel after a profit of NIS 15,000 per month, while a company pays a fixed tax rate of 23% on current profits?

Unlike those who are self employed, an owner of a company has the option to set aside a salary for themselves (including severance pay which is exempt from taxes), make provisions for a budgetary pension, take a loan of up to NIS 100,000 from the company without tax on dividends, etc.

Aside from the financial incentives,  an advantage of the limited liability company is that in the event of a lawsuit, the company is liable, not the owner, whereas a self employed person running a business will be fully liable.

How does this affect me? Which option is better for me?

Our firm will be happy to examine all aspects of your business, including taxation, organization and relevant regulations and provide you with a recommendation as to which form of governance is best for you at any point in time so that you can increase your potential for tax savings, including postponing tax payments to a future date and according to your needs.

Would you like to know if you have reached the stage of establishing a company? We invite you to contact us to schedule a consultation meeting.

Companies and Corporations

Examining the feasibility of transition to a limited liability company

Hi-Tech Companies

Bookkeeping

Production of Pay slips

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