Limited liability companies (LLCs) are generally taxed as corporations. Accordingly if an LLC is organized under the laws of Puerto Rico it is taxed as a domestic corporation and if organized under the laws of any other country, including the United States, it is taxed as a foreign corporation. A Puerto Rico LLC is a foreign eligible entity for U.S. federal income taxes.
LLCs may elect to be taxed as partnerships even if they have a single member. Partnership classification is mandatory when an LLC is taxed as a partnership or as a disregarded entity under the U.S. Internal Revenue Code or the laws of any other country. However, this mandatory partnership classification does not apply if an LLC had an industrial tax exemption grant or a tourism tax exemption concession as of January 1st, 2011.