Operating a Business in Puerto Rico
Here you will find resources to help business owners operate legally in Puerto Rico.
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Pay Your Taxes
Most business are required to pay business taxes to the Puerto Rico Department of Revenue. The following resources provide guidance to filing and paying business taxes:
Employers must also pay Workers' Compensation Insurance, Unemployment Insurance Tax, and Disability Insurance.
- Keep Your
Business and Professional Licenses and Permits in Good
Standing
The Licenses and Permits page contains links to information and services for applying and renewing Puerto Rico licenses and permits.
- Hire and Manage Employees
If you are a new employer, Ten Steps to Hiring a New Employee provides information on how to comply with federal and state labor laws.
If you plan to hire independent contractors to support your business, you need to understand the distinction between employees vs independent contractors.
All Puerto Rico employers must obey federal and state labor laws and equal employment opportunity laws prohibiting employment discrimination. The following resources will help you understand these requirements:
Labor Laws
Equal Employment Opportunity Laws
- Report New
Hires
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire or rehire date. Visit the Puerto Rico New Hire Reporting page to learn how to register.
- Post Required Notices
Employers are required by state and federal laws to prominently display certain posters in the workplace that inform employees of their rights and employer responsibilities under labor laws. These posters available from free from federal and state labor agencies. Visit the Workplace Posters page for specific federal and state posters you'll need for your business.
- Adopt
Workplace Safety Standards
Employers are responsible for protecting the safety and health of their employees by complying with standards set forth by the Occupational Safe and Health Administration (OSHA). OSHA offers a free on-site, consulting services that helps employers identify and remove workplace hazards. For more information on complying OSHA regulations, visit the following resources:
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Comply with Environmental Regulations
You may be required to obtain environmental permits and/or comply with other specific environmental regulations if your business could release pollutants into the air, land or water; or if you store, treat, or dispose of hazardous or solid wastes. Not complying with environmental regulations can lead to costly fines. Determine if your business must comply with environmental regulations and permitting requirements by visiting the following resource:
- Insure Your
Business
Business insurance protects your investment by minimizing financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, or a natural disaster. State governments determine insurance requirements for businesses. Most states require businesses with employees to pay for workers' compensation insurance, unemployment insurance, and state disability insurance. Your state may require insurance of specific business activities. For more information on buying commercial insurance and help locating a licensed agent, visit the Puerto Rico Department of Insurance.
- Keep Good Records
Maintaining business records is not just a good business practice. You may be legally required to maintain records, particularly tax and employment records.
- IRS Tax
Recordkeeping Guidance
Resources and tools aimed at helping employers maintain their tax records. - Labor Recordkeeping
Requirements
Federal employment laws such as the Occupational Safety and Health (OSH) Act, the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA), have certain recordkeeping and/or reporting requirements. - State Wage and Hour Recordkeeping
Requirements
State laws for keeping payroll records, which may be different that federal laws.
- IRS Tax
Recordkeeping Guidance