Doing Business in Puerto Rico: Business Entity Registration at the Puerto Rico Tax Agencies

All Puerto Rico business operations must register with the appropriate agencies.  This list of agencies includes but is not limited to: Department of State, Treasury Department, Municipal Revenue Collection & the Municipality, State Insurance, and the Department of Labor & Human Resources.  For Sales & Use Tax registration, a business must present a Merchant Registration Certificate from both the Puerto Rico Government level and the Municipality. Certificate and registrations must be requested before the Company commences operations in PR.  Oftentimes provisional registrations will be promptly issued.

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.

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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

Establishing New Legal Entity for Business Operations in Puerto Rico

When establishing a business in Puerto Rico, the business owners have an array of choices for when selecting the appropriate business type for their operations.  These include: Business Trusts, Cooperatives, Corporations, International Banking Entities, Insurance Companies, Joint Ventures, Limited Liability Company, Partnership, Public Private Partnerships, Real Estate Investment Trusts, Registered Investment Company, Sole Proprietorship.  When selecting a business model please be aware that each has its own set of rules for qualification, and each has distinct implications from the perspective of tax, insurance, and liability.  The facts and circumstances of a business owners operations are important in determining the appropriate type of business.

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.


***
Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

Reminder: Puerto Rico Residency Rules for Personal Taxation

An individual is considered a a resident of Puerto Rico if he or she is considered domiciled on the island.  This usually means that a person must be present in Puerto Rico for at least 180 days per calendar year.  In addition for a person to be considered a bona fide resident of the island, one must not claim partial year residency in another local (in addition to other tests). The facts and circumstances are important in determining residency status.

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.


***
Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.