Certified Public Accountant for Authorized Business Operators in Petach Tikva

What is a Licensed Business Owner and Why Do You Need an Accountant?

A licensed business owner is a self-employed individual or company that has been registered in the Register of Business Owners and with the Tax Authority, thereby obtaining legal status to conduct business activities. Unlike an exempt business owner, a licensed business owner is required to file periodic VAT reports, maintain detailed records, submit an annual report, and pay income tax based on actual income.

In Petah Tikva, as in the rest of central Israel, many licensed business owners — contractors, consultants, designers, shop owners and manufacturers — require professional guidance to meet legal obligations, streamline reporting and reduce tax payments without compromising compliance.

Why Ben Or Kook Accountants?

Ben Or Kook's office specializes in supporting licensed business owners in Petah Tikva and its surrounding area (Ramat Gan, Givatayim, Bnei Brak and more). We understand the legal requirements, business pressures and the need for personalized, digital service tailored to the modern business owner. In every case, we examine your unique situation — revenue volume, type of activity, salary component (if applicable) — and offer a customized solution.

Main Services for a Licensed Business Owner in Petach Tikva

1. Accounting and Annual Reports

A licensed business owner is required to maintain detailed records of income and expenses, and submit an annual report to the tax authorities. Our office handles all required filings — transaction recording, profit and loss statement preparation, tax and pension liability settlement, and timely submission within the statutory deadline.

2. Periodic VAT Reporting

A licensed business owner typically files VAT reports monthly or bimonthly, depending on revenue turnover. We handle VAT calculation, preparation of periodic VAT reports, and reconciliation of the difference between VAT deducted from vendors and VAT payable on sales.

3. Payroll and Social Security Contributions

If a licensed business owner has salaried employees, we manage payroll records, generate monthly pay slips, process mandatory deductions (income tax, social security, training fund), and report to authorities (social security, income tax, pension fund).

4. Tax Planning and Tax Refunds

We examine your expense structure, identify allowable tax deductions (such as meals, telephone, home office) and plan payments to avoid year-end tax debt. In certain circumstances, significant tax refunds can be achieved.

5. International Tax Advice and Reports

If you are a licensed business owner engaged in exports, foreign purchases, or business with foreign-based related parties, we assist with international filings, foreign reports (FBAR), and compliance with relevant income tax regulations.

Comparison: Exempt Business Owner vs. Licensed Business Owner

It is important to understand the difference between the two statuses to know what to expect as a licensed business owner:

Conclusion: A licensed business owner is subject to stricter legal requirements; however, there are advantages in expense deduction and tax planning opportunities. Therefore, professional guidance becomes essential.

Our Work Process with Licensed Self-Employed Professionals in Petah Tikva

Step 1: Free Initial Consultation Meeting

You come to the city of Petah Tikva or we meet you via video. In this meeting, we get to know your business, your revenue cycle, your specific needs, and your legal requirements. We explain our services and how we can assist you.

Step 2: Defining Work Process

Following agreement, we define the frequency of document submission (invoices, receipts, payments), the channels (email, digital portal, WhatsApp), and the dates for periodic review meetings.

Step 3: Ongoing Management

Each month or period, we update the records, calculate VAT, handle reports, and inform you of any new requirements or tax risks.

Step 4: Annual Report and Tax Returns

Toward the end of the year, we prepare the complete annual report, calculate tax liability or tax refund, and submit everything to the tax authorities on time.

Step 5: Consultation and Rights

Throughout the year, we are available for questions, consultation on expense matters, business decisions, and tax planning for the coming year.

What Licensed Business Owners in Petah Tikva Need to Know?

Rights and Obligations of a Licensed Business Owner

Obligations: A licensed business owner is required to maintain accurate books and records, submit periodic VAT reports (typically monthly or bimonthly), file an annual report with the tax authority, pay income tax on profits, pay national insurance contributions for self-employed individuals, and pay severance fund contributions (if applicable). Any late submissions may result in penalties and interest.

Rights: A licensed business owner may deduct recognized business expenses (home office rent, telephone, electricity, production costs, employee salaries, and similar). If you pay VAT on your expenses, you may offset it against the VAT owed on your sales. In certain circumstances, you may be eligible for significant tax refunds.

Important Deadlines

VAT reporting: typically by the 15th of the month following the reporting period. Annual report: typically by March 31 of the following year (or by April 30 if you use an accountant). Tax payment: typically in installments according to tax authority directives.

Common Risks

Failure to file or late submission of VAT reports can result in penalties. Inaccurate record-keeping may trigger a tax authority audit. Claiming non-deductible expenses during a tax audit may result in expense disallowance and additional tax liability. Therefore, professional guidance is essential.