Limited Liability Companies
Limited liability companies (LLCs) are generally taxed as corporations.
Accordingly if a LLC is organized under the laws of Puerto Rico it is taxed as a
domestic corporation and if organized
under the laws of any other country, including the United States, it is taxed as
a foreign corporation. A Puerto Rico LLC is a foreign eligible entity for U.S.
federal income taxes.
LLCs may elect to be taxed as partnerships [link to partnership summary] even if
they have a single member. Partnership classification is mandatory when a LLC is
taxed a partnership or as disregarded entity under the U.S. Internal Revenue
Code or the laws of any other country. However, this mandatory partnership
classification does not apply if an LLC had an industrial tax exemption grant or
a tourism tax exemption concession as of January 1st, 2011.
2013 Modifications to Income and Sales Taxes Regimes