Income Tax

The corporate income tax rate is 21%. Additionally, there are state tax rates that can vary by state but do not exceed 12%.

There are various types of business entities, with the most common being Corporation and Limited Liability Company (LLC). Both of these types of entities provide owners with protection from business liability (both have 'limited liability'). A Corporation is represented by officers and directors, similar to a S.A. (Sociedad Anónima) in Colombia.