FAQ | BTA Group LLC

Frequently Asked Questions

About Business Formation

What do I need to start my own business in Puerto Rico?

To start on the right foot, you should define your legal structure (Individual, LLC, or Corporation). At BTA Group, we assist you with incorporation through the Department of State, obtaining an Employer Identification Number (EIN), registering with Hacienda, and applying for the Single Business Permit.

What is the difference between a Regular Corporation and a Pass-Through Entity?

The main difference is how profits are taxed. In a pass-through entity, profits “pass through” to the owners and are reported on their personal tax returns, avoiding double taxation. We evaluate your specific case to recommend the best structure.

About Permits & Government Management

What is the Single Business Permit and why do I need it?

The Single Business Permit consolidates multiple requirements into one: use permit, environmental exemption certification, fire department, and health certifications. It is mandatory for any business with a physical location. We handle the entire process for you.

What are the SAM number and the RUL (Single Bidders Registry) for?

If your goal is to sell products or services to the Puerto Rico Government (RUL) or the U.S. Federal Government (SAM), these registrations are essential. They are technical processes that require accurate financial information, and BTA Group manages them for you.

About Taxes

Do I need to file tax returns in Puerto Rico and the United States (IRS)?

It depends on the nature of your income. Generally, Puerto Rico residents file with Hacienda, but if you have federal income sources, work with the U.S. government, or have employees, you may also have IRS obligations. We handle both jurisdictions.

What is the difference between a W-2 and a 480?

A W-2 is used for employees on payroll with tax withholdings and benefits. A 480 form is used for independent contractors providing professional services. Proper classification is essential to avoid penalties.

About Accounting & Payroll

How often should I update my accounting books?

Monthly. This allows you to maintain up-to-date financial statements, apply for loans or credit lines, and understand your business performance in real time.

What happens if I miss a filing deadline?

Act quickly. Hacienda and the IRS apply penalties and interest for late filings. At BTA Group, we perform compliance reviews to bring your accounts up to date and, when possible, request penalty relief.