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Gobierno de Puerto Rico

Choosing a Type of Business Structure

In this section, entrepreneurs will find a general description of the types and structures of businesses in Puerto Rico such as: sole proprietorships, partnerships and corporations.  

Sole Proprietorships

A sole proprietorship is a business where the assets belong to an individual who is personally responsible for the businesses’ debts and obligations. In other word, the entrepreneur assumes all risks that may be derived from activity...

A partnership is an alliance where two or more individuals, corporations or other legal entities agree to conduct and operate a business as co-owners, with the purpose of sharing earnings. Partnerships should be established to benefit the interests...
/G2B/Home/ Buss_BusinessStartup/Buss_TypeofStructure/Partnerships.htm  
Limited Liability Companies (LLC)

A Limited Liability Company is a business organization characterized by the benefit of personal limited liability for its members. As a general rule, the partners´ responsibility for debts and obligations...
/G2B/Home/ Buss_BusinessStartup/Buss_TypeofStructure/LimitedLiabilityCompanies.htm 


A corporations is a business organization that posses a legal personality apart from its owners. That is, there are stockholders, directors and officers, as opposed to a regular partnership or sole proprietorship that cannot operate...
/G2B/Home/ Buss_BusinessStartup/Buss_TypeofStructure/Corporations.htm  
Special Partnerships

Special Partnerships are partnerships that receive special tax treatment. This organizational structure is available for partnerships and corporations, excluding Subchapter N Corporations. Those entities that comply...
/G2B/Home/ Buss_BusinessStartup/Buss_TypeofStructure/SpecialPartnerships.htm 

Subchapter N Corporations

Subchapter N Corporations, like Special Partnerships, receive special tax treatment. This organizational treatment is available for corporations and domestic partnerships, excluding those that choose...
/G2B/Home/ Buss_BusinessStartup/Buss_TypeofStructure/SubchapterNCorporations.htm  

Joint Ventures

A Joint Venture is a combination of two or more partnerships that join to achieve a common commercial objective. As a general rule, an unincorporated Joint Venture formed by two commercial entities will be considered as a partnership of....
/G2B/Home/ Buss_BusinessStartup/Buss_TypeofStructure/JointVenture.htm


A cooperative is an autonomous association of people joined voluntarily to satisfy common economic, social and cultural needs through an enterprise that is co-owned and democratically controlled.
/G2B/Home/ Buss_BusinessStartup/Buss_TypeofStructure/Cooperatives_Redirect.htm