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A Puerto Rico LLC taxed as a Corporation of Individuals is taxed as a pass-through entity and doesn't pay corporate income tax, making it similar to a partnership. However, unlike a partnership, a corporation of individuals can make distributions to its members that aren't subject to US self-employment taxes.
To start a corporation in Puerto Rico, you'll need to do three things: appoint a registered agent, choose a name for your business, and file Certificate of Incorporation with the Department of State. You can file online or by mail. The certificate costs $150 to file.
Annual reports must be filed electronically by accessing the Department of State website at .estado.pr.gov. A $150 annual fee is payable when filing the report. The payment method is a major credit card or any other method provided at the Department of State website.
A foreign corporation may be engaged in trade or business in Puerto Rico as a division or branch of that foreign corporation, or as a separate corporation or subsidiary.
A domestic corporation is taxable in Puerto Rico on its worldwide income. A foreign corporation engaged in trade or business in Puerto Rico is taxed at the regular corporate tax rates on income from Puerto Rico sources that is effectively connected income.
Limited Liability Company CostDescriptionDownload$150.00Annual FeeDownload$50.00Certificate of TransferenceDownload$50.00Certificate of Transference and ContinuityDownload$80.00Dertificate of DissolutionDownload9 more rows
What's required to register a foreign corporation in Puerto Rico? $150 filing fee ($250 if filing online or in person) Certificate of Good Standing from your home state. Internet access (the best and easiest way to file in Puerto Rico is on the Department of State's website)
Puerto Rico residents generally do not pay federal income taxes, but they do pay taxes to the Puerto Rico government. And Puerto Rico keeps those taxes low for certain businesses and individuals. Under the Act 60 Export Services Tax Incentive, a qualified business enjoys a corporate tax rate of only 4%.