Llano Morales CPAS

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+1-787-936-2600
Financial services

Our Services

At our firm, we offer a broad range of high-quality professional services designed to meet the financial, tax, and strategic needs of individuals, businesses, and estates.

Assurance Service and Special Reports

Professional attestation services requiring CPA licensure and regulatory compliance.

Our CPA services are strictly provided by board-certified CPAs and include the issuance of reports bearing the CPA stamp, as mandated by professional and legal standards. These services are subject to the rigorous guidelines of the AICPA and local statutes.

  • Audit Engagements:

    Full-scope, independent audits of financial statements in accordance with GAAS.

  • Review Engagements:

    Limited assurance services to provide comfort on financial information.

  • Compilations:

    Preparation of financial statements based on client information, with no assurance.

  • Agreed-Upon Procedures (AUP):

    Targeted procedures tailored to meet specific client or third-party needs.

  • Financial Projections and Forecasts

    Future-oriented financial reports used for planning and decision-making.

  • These services are supervised and delivered by our audit and attest partner, Josué M. Llano Morales, CPA.

Accounting Services

Reliable and accurate financial reporting supported by our expert bookkeeping team.

Our accounting department is staffed by experienced professionals and is continually supervised to ensure the highest level of accuracy and integrity in the financial information we prepare. This service is ideal for businesses seeking dependable day-to-day accounting solutions.

  • Payroll Processing:

    End-to-end payroll solutions that ensure compliance with local and federal regulations.

  • Monthly Financial Statements

    Preparation of balance sheets, income statements, and cash flow reports.

  • Monthly Reconciliations:

    Detailed reconciliation of bank and financial accounts to ensure ledger accuracy.

Our commitment to excellence in bookkeeping and financial reporting distinguishes us from other firms.

Payroll & Tax Employment Compliance

We assist employers in meeting all obligations related to employee compensation, including withholding, reporting, and remitting applicable taxes.

Payroll Tax Payments

We ensure correct calculation and submission of employer and employee tax liabilities, including:

Financial services

Due Dates:

  • Federal payroll deposits: semi-weekly or monthly, depending on employer’s total tax liability.
  • Puerto Rico payroll taxes: due by the 15th of the following month.
  • Quarterly Forms: IRS Form 941 (Federal): Due by the last day of the month following each quarter, PR Form 499R-1B: Puerto Rico quarterly payroll return due on the last day of the month following the quarter.

Sales Tax Filing

We handle the registration, collection, and filing of Puerto Rico’s Sales and Use Tax (IVU), which includes:

  • State Rate: 10.5%
  • Municipal Rate: 1.0%

Due Dates:

Year-End Tax Forms:

Corporate, Business & Property Tax Compliance

Our team provides business entities with full support for corporate income and business tax obligations, including:

Corporate Income Tax Returns

We prepare and file returns for both Puerto Rico and U.S. federal jurisdictions.

Estimated Tax Payments:

Municipal Tax Returns:

Preparation and filing of the Municipal Business License Tax return.

Property Tax Compliance (CRIM)

We manage the filing and compliance related to the Municipal Revenue Collection Center (CRIM), including:

  • Personal Property Tax: Applies to equipment, inventory, and furnishings used in business.
  • Rates: Generally 6.83% of assessed value, though it may vary by municipality.
  • Due Date: Annual return due May 15 (Form M-1). Puerto Rico businesses must make four equal quarterly estimated payments based on the previous year’s tax liability (or expected liability for the current year):
    ● August 15
    ● November 15
    ● February 15
    ● May 15

Annual Corporate Reports:

Corporations (Corp., Inc.)

Due Date:

April 15 of each year.

  • Filing Includes:
  • Basic corporate information (legal name, physical address, date of incorporation).
  • Names of officers and directors.
  • Financial Statements (Balance Sheet and Income Statement).
  • If the corporation has revenues of $3 million or more, the financial statements must be certified by a CPA licensed in Puerto Rico.
  • Payment of the Annual Report filing fee (varies by capital amount or revenue).
  • Penalties: Late filing or failure to file may result in fines and administrative dissolution.

Limited Liability Companies (LLCs):

  • Due Date: Also April 15 each year.
  • Filing Includes:
  • Basic entity information (legal name, registered agent, address).
  • Names of members or managers.
  • No financial statements are required for LLCs—only administrative information.
  • Annual fee payment (typically $150).

Note:

LLCs electing to be treated as corporations for tax purposes may be subject to additional requirements.

All tax services and compliance matters are supervised by Pascual Llano, CPA, MBA, our firm’s Senior Consultant Partner and tax expert, who brings over three decades of experience in corporate and personal taxation, strategic planning, and compliance for complex entities.

Estate, Succession & Gift Planning

Comprehensive estate planning that goes beyond tax filing.

At Llano Morales CPAs PSC, we provide personalized and thorough estate planning services to individuals and families looking to manage the transfer of their assets with clarity, tax efficiency, and peace of mind. Our approach goes far beyond preparing estate tax returns—we guide clients in the design, implementation, and documentation of their legacy to reduce tax burdens, avoid future legal disputes, and ensure a smooth transition of wealth. Key Services Provided:

Estate Inventory Waiver

We support families in obtaining waivers from the Puerto Rico Department of Treasury (Hacienda), which certify that the estate meets tax and procedural requirements to proceed with legal actions such as property transfers, sale of real estate, or inheritance distributions.

Estate Partition Plans

We develop and document strategies for fair and legally sound distribution of estate assets among heirs, including the valuation of real and personal property, liquidation options, and handling of jointly owned assets.

Succession & Donation Planning

We provide expert guidance in structuring lifetime transfers of wealth through gifts (donaciones) and succession plans that minimize tax exposure and ensure compliance with local inheritance and civil law.

  • Puerto Rico Gift Tax (Donación):

    Currently, Puerto Rico does not impose a gift tax. However, documentation and notarization are often required for transfers, especially involving real property or family-owned businesses.

  • Federal Gift Tax:

    ● Flat 29% (for entities with U.S. filing requirements)
    ● Annual Exclusion: $18,000 per recipient (2024).
    ● Lifetime Exemption: Tied to the estate exemption ($13.61 million in 2024).
    ●Gifts exceeding the annual exclusion must be reported using Form 709.

Estate Tax Return Preparation:

We assist in the preparation and filing of estate tax returns in compliance with both Puerto Rico and U.S. federal tax regulations.

  • In Puerto Rico, the estate tax (formerly known as “impuesto de herencia”) was repealed in 2011. However, certain estate declarations and waivers are still required for court and legal processes.

  • For U.S. federal purposes, Form 706 – United States Estate (and Generation-Skipping Transfer) Tax Return may be required even for bona fide Puerto Rico residents in limited situations, such as when assets are located in the U.S. or when the decedent was a U.S. citizen or resident.
    ● Federal Estate Tax Rate: 40% on the value of taxable estate exceeding the exemption.
    ● 2024 Federal Exemption: $13.61 million per individual (indexed annually for inflation).
    ● Filing Deadline: Due: 9 months after the decedent’s date of death. Extension: An automatic 6-month extension may be requested by filing Form 4768.

Will & Distribution Strategy

Estate distribution aligned with your intentions and Puerto Rico’s new inheritance law.

At Llano Morales CPAs PSC, we guide our clients beyond the basic drafting of a will. Our objective is to offer strategic clarity in how their estate will be distributed—based on both their personal wishes and compliance with Puerto Rico’s revised Civil Code.

  • Align their distribution plans:

    With their estate structure, debts, and obligations.

  • Prepare a simulated distribution model:

    To visualize how assets will be divided among heirs—both under a will and under intestate succession, if applicable.

  • Avoid surprises or conflicts:

    Among heirs by proactively addressing legal constraints and planning alternatives.

  • Plan for complex assets:

    Such as family businesses, trusts, or international holdings.

Financial services, Accounting

Summary of Puerto Rico Inheritance Law (as of 2020 Reform)

Under the new Civil Code of Puerto Rico (Law 55-2020):

  • Forced Heirship (Legítima):

    ● 50% of the estate must be reserved for forced heirs, which typically include children and descendants.
    ● If there are no descendants, ascendants (e.g., parents) may inherit.

  • Free Disposition (Libre Disposición):

    The remaining 50% of the estate may be freely assigned to anyone, including non-relatives, charities, or favored heirs.

  • Surviving Spouse:

    ● The spouse is now considered a legal heir, with rights to inherit in the absence of descendants.
    ● The spouse shares equally with descendants or ascendants and also has a usufruct (lifetime use) right over the marital home.

Simulated Distribution Planning

We develop customized estate distribution simulations so clients can:

Legal Coordination

We work closely with:

  • Notaries for wills and codicils
  • Attorneys to address court filings and estate administration
  • And court clerks for probate and property transfer procedures.

We ensure every stage—from estate declaration to partition—is managed properly and in accordance with the law.

At Llano Morales CPAs PSC, we empower our clients with clear, lawful estate planning options. Whether you’re preparing a will, planning a legacy, or navigating inheritance processes, we help you make informed decisions today to protect your heirs tomorrow.

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Business Strategy & Executive Consulting

From auditor to trusted advisor—real insight and guidance for your toughest decisions.

At Llano Morales CPAs PSC, we offer high-level strategic consulting tailored for business owners, executives, and boards facing critical decisions. Led by Pascual Llano, CPA, MBA, a seasoned advisor with over 38 years of experience consulting for complex organizations, our executive advisory services bring clarity and direction in times of transformation, uncertainty, or growth.
Pascual’s professional evolution—from audit partner to strategic business consultant—equips him with a rare combination of technical financial insight and operational acumen. He brings to each engagement a deep understanding of how to translate numbers into strategy, and strategy into results.

Business Strategy Development

We help leadership teams design and refine business strategies that align with financial goals, market trends, and operational capabilities. Whether it’s scaling a startup or repositioning a mature enterprise, we guide clients through:

Financial services

SWOT analysis and competitive benchmarking

A SWOT Analysis is a fundamental business tool used to evaluate a company’s internal and external environment by identifying:

  • Strengths

    What the business does well (e.g., unique capabilities, loyal customer base, strong financials).

  • Weaknesses

    Internal limitations or areas for improvement (e.g., lack of resources, outdated technology, poor internal processes).

  • Opportunities

    External factors that could be leveraged for growth (e.g., emerging markets, regulatory incentives, strategic partnerships).

  • Threats

    External risks that could affect performance (e.g., competition, economic downturns, new regulations).

Strategic planning workshops

Collaborative sessions that align vision, strategy, and execution.

At Llano Morales CPAs PSC, our Strategic Planning Workshops are structured, results-driven sessions designed to help leadership teams and stakeholders define, refine, and execute their business strategy. These workshops create a space for clarity, alignment, and decision-making—rooted in data, business realities, and long-term objectives.
During these workshops, we guide participants through a step-by-step process that typically includes:

Goal setting and KPI design

KPIs are quantifiable metrics that track progress toward strategic and operational goals. Effective KPI design ensures that business leaders and stakeholders have clear visibility into performance, allowing timely decisions based on real data.

We help our clients:

Organizational Restructuring & Governance

Restructuring is more than cutting costs—it’s about creating a sustainable, efficient, and agile organization. We support:

Cost-Benefit Evaluation of Key Decisions

Every business decision carries financial consequences. We provide expert, impartial analysis of investment opportunities, new ventures, expansion plans, and operational changes by:

  • Modeling financial scenarios and ROI projections
  • Identifying opportunity costs and breakeven points
  • Comparing leasing vs. buying, outsourcing vs. in-house, and similar strategic options

Leadership Advisory and Board Governance

Executives and board members need more than numbers—they need insights that support good governance. We assist in:

  • Board meeting preparation and participation
  • Designing board-level dashboards and reporting tools
  • Advising on CEO performance, succession planning, and corporate ethics

At Llano Morales CPAs PSC

Our consulting services are grounded in real-world experience, not theory. We are not here for coffee—we are here to uncover root issues and help you make the best decision the first time.

Whether you're preparing for a merger, realigning your operations, or setting a five-year roadmap, we’re your trusted partner in moving forward with clarity, confidence, and control.

Industry-Specific Consulting

Tailored consulting backed by real-world industry knowledge.

Our professionals have worked across a diverse range of industries, enabling us to offer insight-based, practical recommendations:

  • Construction
  • Hospitality
  • Oil & Gas
  • Supermarkets & Wholesale Distribution
  • Real Estate
  • Restaurants & Manufacturing
  • Green Energy & Puerto Rico Incentive Code

Our cross-industry knowledge allows us to offer more than just accounting—we deliver customized consulting solutions to meet industry-specific challenges.

Corporate Governance & Executive Consulting

Led by our Managing Partner, Pascual Llano, an expert in corporate governance with:

  • Over 38 years of executive advisory experience
  • Expertise in sophisticated corporate management structures
  • 25+ years of following and applying trends from the Harvard Business Review
  • Proven communication and leadership skills
  • MBA and CPA credentials

LLMCPAS offers strategic insight into governance, risk, and compliance in a wide array of industries.

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