Making the decision to establish a limited liability corporation (LLC) can be wise if you’re thinking about beginning a business in Puerto Rico. The liability protection offered by an LLC is identical to that of a corporation, but with less red tape and more flexibility. Here is the information you need to form an LLC in Puerto Rico.
The first step in creating an LLC is picking a name. The name must be original and unclaimed by another Puerto Rican company. By performing a search in the Department of State’s online database, you can determine whether a name is available. Once you’ve decided on a name, you can submit a request to the Department of State to reserve it for 120 days.
Step 2: Submit Articles of Incorporation You must submit Articles of Organization to the Department of State in order to establish an LLC. The Articles of Organization establish your LLC’s existence and contain details like the LLC’s name, its goals, and the names and addresses of its members. The articles of organization can be submitted by mail or online.
An Employer Identification Number (EIN) is a special number that the IRS issues to your company for tax-related reasons. An EIN is required to open a bank account, hire staff, and file taxes. The IRS website offers a free EIN service.
Obtaining licenses and permits is step four. You might need to apply for licenses and permits from various governmental organizations depending on the type of business you’re launching. For instance, you’ll need a food service permit from the Department of Health if you’re opening a restaurant. On the website of the government of Puerto Rico, you may discover a list of the licenses and permits needed for various kinds of businesses. Let’s now address some related queries.
The same steps that must be taken to form an LLC must also be taken to register a sole proprietorship in Puerto Rico. It must choose a name, produce the organizational documents, and obtain an EIN. In addition, the licenses and permits required for the type of business being launched must be obtained.
Depending on the type of business and the amount of social capital, SAT (Servicio de Administración Tributaria) entry fees for businesses vary. The price range is typically between $2,000 and $3,000 pesos.
You can register your business online through the Department of State of Puerto Rico’s Portal of Online Services. You can also present the documents in person at one of the Department of State’s offices.
In Texas, forming an LLC will set you back $300. This is the fee for submitting the organizational documents to the Texas Secretary of State. However, additional fees may be necessary depending on the type of business starting and the necessary licenses and permits.