From a legal point of view, there are many strategies that can be implemented to protect valuable assets from possible claims, government exactions, a hostile partner, etc. Planning for these eventualities is an essential part of establishing sound growth strategies.
In times of financial need, a well written, complete and appealing financing request can be the difference between making or breaking the beginning of a new venture or the continuance of one. Make sure your request contains the necessary information to obtain satisfactory results.
Organizing a new business can have many legal ramifications. To guarantee a good start to many years of success it is essential to plan every aspect. From choosing the right entity for your type of business up to determining the most efficient operational structure, you should never overlook the legal framework surrounding your line of business.
Changes in the economy many times bring about the need for changes in business structures, even when these structures were successful in the past. An effective reorganization plan should consider the tax implications of the desired structure and many times proper planning will reduce or minimize the tax responsibility.
We have represented many clients in acquisitions and sales of business through the purchase/sale of assets, stocks or participations. Our office is able to guide you through the whole process, from the Due Diligence which is an essential decision making tool, through the negotiation, drafting, formalizing of contractual agreements and compliance with the different Government requirements.
A closing agreement with the Department of Treasury provides finality to transactions or to uncertain tax positions. Having this document drafted and reviewed by a tax lawyer may help reduce or eliminate future challenges and provide the closure needed to start fresh.
Our office is also experienced in IRS matters and in particular, we have worked extensively with clients that, due to their Puerto Rico residency, face very particular federal tax issues. A closing agreement is often an important tool that both taxpayers and the US IRS benefit from because it allows both parties to reach fair solutions to the many federal tax controversies that may arise.
Contractual agreements are the chore of business relationships and civil life in general. We are happy to help you move on with the often pesky task of drafting agreements so that they reflect the true will of the parties. We also have the tools to assist you in negotiating the best terms that will ensure your business and/or personal wealth are protected and ready for the next step in life.
A durable power of attorney subscribed in Puerto Rico can give your designee the power to exercise the tasks and decisions you delegate even after you become physically or mentally disabled.
An estate distribution process guided by an attorney that can work with all the heirs in order to reach favorable agreements for all the estate members, can expedite the process and also save unnecessary litigation costs.
The timely filing (9 months after the day of death) of a Puerto Rico estate tax return upon the death of an individual is essential to obtain the necessary waiver for the proper distribution of the inheritance. Our office can help you finish this process in a seamless fashion while complying with Puerto Rico laws. Also, as registered IRS tax preparers, we can also assist in the preparation of the United States Estate Tax return when applicable.
Every homeowner in Puerto Rico should consider securing their principal residence with the protection that a homestead exemption act can provide against certain creditors. Our notaries can help you understand the significance of this document and why many times it costs more not to have it.
The law in Puerto Rico allows an individual to prepare and formalize before a notary a living will in which the individual’s wishes regarding medical treatment can be established for all legal purposes.
LLC’s have become a very popular way of organizing businesses in Puerto Rico since their 2009 appearance in our laws. Make sure you are aware of the full advantage of the administrative and tax flexibilities this vehicle has to offer.
With a highly capacitated workforce, the Puerto Rico Government bets on the manufacturing industry to jump start the Country’s economic growth. Historically, Puerto Rico has had laws that provide substantial incentives through tax exemptions and/or credits.
Puerto Rico currently has 78 municipalities that are authorized by law to impose municipal taxes. Aside from the municipal tax exemptions that can be obtained with the current tax exemption laws, many municipalities have incentives packages they offer to certain types of businesses that wish to establish within their jurisdiction.
Corporations are probably the most commonly used way of doing business. Depending on the ownership structure and the desired operational structure, a corporation may be the optimal choice for a new venture.
Keeping up to date with your payroll responsibilities is key to a successful well planned financial future. Defaulting with payroll taxes may have harsh consequences for the business, its managers and owners.
For business or personal matters, a power of attorney is a legal tool that can save time and money by delegating tasks and decisions on persons you trust. A well drafted and formalized power of attorney is a widely recognized document by which you can avoid delays in day to day transactions.
Prenuptial Agreements in Puerto Rico need to follow certain formalities. They also need to be well drafted in order to be valid in the future. Our notaries can assist you in the preparation of a prenuptial agreement that will work as a lifetime legal tool for couples to abide by.
Employee-employer labor relations have a great impact in corporate decision-making and organizational governance processes. We offer thorough and effective legal representation, assistance, and counseling to meet our client’s needs. Our counseling practice covers matters such as business labor planning and organization; drafting of personnel policies; drafting of employment contracts and non-competition agreements; collective bargaining; workers’ compensation; and other employment law matters.
Regardless of law moratorium, tax credits are still valuable assets that can generate revenues and cash flow for an individual or an entity.
Real property sale transactions must be formalized through a public deed in Puerto Rico. This deed must be authorized by a Puerto Rico notary.
Over 70% of our attorneys have a financial background and will work with clients to fully understand their compliance needs in order to make this often daunting task more efficient. We can assist on the preparation of tax returns, forms and declarations for the compliance with both Puerto Rico and United States laws.
With the majority of our tax credits now under moratorium, a tax credit request needs to be handled carefully and diligently to ensure maximization of benefits.
Act 20-2012 and Act 73-2008 offer attractive tax exemptions packages for businesses dedicated to the export of services and certain business activities such as software development, recycling, social interest and totally or partially sustainable housing construction and planning, among other.
The Puerto Rico tax system has been changing frequently in the past few years in response to the economic conditions of our Island. With these changes businesses need to re-evaluate their compliance procedures and strategies in order to avoid unexpected Government assessments and penalties which can impair a business ability to grow or continue as a going concern. A tax risk assessment can give your management team the peace of mind they need so they can focus on what they know best.
Tourism is probably one the most important industries in Puerto Rico nowadays because of its growing potential. Thus tax exemptions and tax credits may be obtained from Government to promote tourist developments. Qualifying tourist developments are not limited to traditional hotels, but activities such as nautical, medical tourism and amusement parks, among others, may enjoy considerable benefits.
Puerto Rico trust law has been recently changed by Act No. 219-2012 pursuing the promotion of the use of trusts not only in the family or estate aspect but as a mechanism of economic development for Puerto Rico, thus encouraging business organizations through the formation of inter vivos trusts.
Taxpayers are strongly advised to consult with tax attorneys prior to entering into any (PR or US) Voluntary Disclosure Program. These program offer taxpayers special treatment after incidents of noncompliance but they can be very particular. The afforded special treatment may not be for every instance of noncompliance as they can result in significant loss of assets. Making the right choice of procedure which best fits the taxpayer’s facts and circumstances can make a big difference.
Plan for your loved ones and that business you worked so hard for by drafting a will that could protect your assets from other persons’ incorrect decisions. There may be many decisions you can make before it is too late and a carefully drafted will may be the only way to ensure that your post mortem wishes are carried out.