8 Tamar Gubins, Fox Rothschild: “New York is home to tech sector communities in which Israeli companies are concentrated, including in AI, cybersecurity and FinTech, and there is significant VC investment in New York tech companies. In the last five years there has been a substantial increase in the number of Israeli founded startups in New York City. For Israeli startups, establishing even a small presence in New York provides access to capital, strategic partners, and customers in the U.S. market.” Regardless of who occupies the Mayor’s office, these sectoral ecosystems – capital, universities, hospital systems, and a dense startup community – are likely to remain central to New York’s appeal for Israeli founders. Regulatory and Commercial Hurdles: What Israelis Must Navigate With a potentially more activist city administration on the horizon, understanding existing legal and regulatory complexity becomes even more critical for Israeli businesses. Ariel Yehezkel and Allison Troianos, Sheppard Mullin: “Founders may encounter a range of legal, regulatory, and commercial challenges when establishing or scaling their businesses in the U.S. Although the specifics can vary by industry, the process typically involves navigating complex laws at the federal, state, and municipal levels, each of which may have unique requirements. Immigration and visa compliance is often one of the earliest and most critical considerations, with options such as the H-1B for skilled workers and the L-1 for intracompany transfers, presenting complicated requirements, lengthy processing times and evolving regulations. These factors can significantly impact a company’s ability to hire the talent necessary for its U.S. operations. For businesses involved in importing goods or purchasing equipment internationally, understanding U.S. tariff policies is essential for effective planning and managing overall costs. Forming a U.S. entity and securing a federal Employer Identification Number (EIN) can also pose challenges, as the procedures for appointing directors, officers, and preparing governance documents often differ substantially from those in Israel. Additionally, it is vital for founders to familiarize themselves with local employment and tax laws since these can be complex and differ
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