Help is on the Way for U.S. Small Businesses

On Friday afternoon, the latest stimulus package known as the CARES (CoronaVirus Aid Relief and Economic Security) Act was signed into law. Below we have targeted two provisions we believe are directly and most relevant to our startup clients.

Paycheck Protection Program (PPP)

Cash grants are available to companies who retain their current employees at their regular salaries. Some key points: 

1. Grants are...

Tax Deadline - Important Update

The IRS has finally come through and officially fully extended the tax deadline from April 15, 2020 to July 15, 2020. Their original position as stated in our previous update was to only extend the payment due date. We are grateful to receive some good news during these challenging times.

Cash Flow Stimulus Package

Washington is currently very focused on putting cash and liquidity in the hands of small business owners an...

Our hearts are with you during these challenging times. We are rooting for each and every one of our resilient start-ups to emerge from this crisis even bigger and better than before!

Tax Deadline Updates:

Corporate Filing Deadline for the 2019 Tax Return or 2019 Extension Request remains April 15, 2020.

Payment of any the following:

• Tax due as reported on the 2019 tax return

• Tax due as reported on the 2019 extension request

• Tax due as rep...

Tax and Related Issues When Employees Relocate to the U.S.

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We find that the start of the new school year is popular timing for having employees with families relocate to the U.S. Any Israeli corporation considering relocating an employee should be aware that there are certain consequences, tax and otherwise, to:

• The employee,

• The U.S. corporation that will be the employer, and

• The Israeli corporation its...

MK Tax is celebrating how it has grown in the past two years. We’re now a team of ten people dedicated to serving you. And we’re thrilled to announce that our expansion has led to a brand new home for us: a new office. Situated right at the entrance to Jerusalem, and directly on the speed train route—only 27 minutes from Tel Aviv—our new office captures our values of professionalism and unsurpassed service, while expressing our unique contribution t...

MK Tax in collaboration with other leading tax experts, invite you to join our morning seminar as we explore how the recent tax changes affect your company. Please click here to register.

Now available for download.

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Nearly all Israeli startups that operate in the US will incorporate in Delaware. For that privilege, each Delaware corporation is required to file and pay an annual franchise tax by March 1, 2019. Unlike the standard income tax calculation, the franchise tax is due whether or not the US company actually has any profits. As a matter of fact, it is often times the companies which are generating significant losses whic...

The WayFair Case. And the Way Ahead, Fair or Not…

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Something monumental has just occurred regarding the expansion of the sales tax net which will now capture many more businesses, including those based in Israel and selling to US clients. Such businesses may need to increase the overall charge for their product to include sales tax as well as carry the burden of collecting and reporting the tax. Additionally, such com...

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Payroll is often times a start up’s first exposure in dealing with US tax matters. There are so many critical decisions to make right at the get go – what are the accepted compensation packages in the US, what benefits to offer, what service provider to use, how does it all work.

In an effort to provide the proper guidance in this area, we invited our esteemed US colleague David Bercow, Director at Trinet (...