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The initial cost to start an LLC in Puerto Rico is $250 to register your business with the Department of State. After that, you'll have a yearly recurring cost of $150 for your Annual Fee, which keeps your LLC current with the state.
If your LLC is taxed as a Puerto Rico corporation, you'll need to pay corporate income tax. Puerto Rico's corporate tax rate is 37.5%. However, under the Puerto Rico Incentives Code (Act 60), businesses based in Puerto Rico only need to pay a 4% corporate income tax on goods and services exported from the commonwealth.
If you're ready to form an LLC in Puerto Rico, you'll need to file the Certificate of Formation with the Puerto Rico Department of State to make it official. You can download the Certificate of Formation online at the Department of State website.
Puerto Rico LLC Cost. The initial cost to start an LLC in Puerto Rico is $250 to register your business with the Department of State. After that, you'll have a yearly recurring cost of $150 for your Annual Fee, which keeps your LLC current with the state.
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%.
Filing and forming an LLC in Puerto Rico requires a $250 filing fee. Under Puerto Rico law, an LLC uses a limited liability company agreement, or LLCA, to govern the internal affairs and administration of the LLC. This is valid regardless of what it is called, but the law says that they must be written.
The U.S. tax code (Section 933) allows a bona fide resident of Puerto Rico to exclude Puerto Rico-source income from his or her U.S. gross income for U.S. tax purposes.