5 Main Steps to Start Your Business

If at any time you have considered the possibility of launching your own business, or if you want to start offering professional services in the field in which you have an interest in working, you must take a few basic steps to start on that path at a steady pace.

There are multiple requirements to start your business in Puerto Rico. It is important that you look for specialized advice depending on the field in which you want to undertake. But, as a basis, in this article we share with you certain general requirements that are fundamental in the process of getting started.

1) Business Plan

You must define what your business is about and how you distinguish your value proposition. A business plan is a basic document to start getting financing or capital contributions that are necessary to start your business.

2) Trade name or legal entity

You must define whether you are going to do business alone or with a partner and the name of your business. As a general rule an individual can do business "Doing Business As (D / B / A)" and is identified with a trade name. In that case, you must have your trade name registered in the Department of State under the Trade Names Registry.

On the other hand, if you decide to join or associate, it is very important that you define the most appropriate legal entity and also register it in the Registry of Corporations in the Puerto Rico State Department. There are several ways to organize your legal entity, as it may be a Corporation, a Limited Liability Company (LLC) or a Partnership, Limited Liability Partnership or a Professional Services Corporation (PSC). However, each of them has particular requirements with which to comply so that you can create it.

Once your legal entity is established, you must have the documents that govern your organization or corporation for the administration and operation of your business.

3) Merchant Registration

As part of the requirements for any company, it is vital that you obtain your Merchant Record from the Department of the Treasury of Puerto Rico. This Certificate is a requirement to process everything related to your income taxes, sales tax (IVU) on income taxes withholdings or payments for services rendered, or any other tax requirement.

It is also important that you get your employer identification number (EIN) from the Internal Revenue Services (IRS) office. That identification number is also important to handle everything related to your legal entity, employer registration and corresponding payments for the applicable federal taxes.

4) Licenses and Permits

All businesses in Puerto Rico must have their corresponding licenses or permits to operate. It depends on the type of business you are going to undertake, you must confirm all the licenses or permissions required, but you should not overlook that some of the steps you have to do are related to:

- Municipal License

- Permit for Usage

- Fire Department Permit

- Sanitary License

- Professional licenses

- Purchase Agreements or Leasing Contracts

- Others

5) Jump and start

Once you have the minimum requirements to operate, have your business plan defined and the enthusiasm to embark on your new career, get out there and Run!

Your legal advisor can assist you to obtain all necessary documents and agreements between you and your partners, your suppliers, service providers or agencies to embark on your new company. Never doubt of your potential. Wishing you Great Success!

Until next time!

Notice: The information contained is provided for informational and essentially explanatory purposes. It does not represent specific legal advice.