Tax risks by country
A U.S. LLC does not remove your obligations in your country of tax residency. These are the points worth reviewing depending on where you live, before you sign up.
Spain
tax residency in SpainTax residency: if you're a Spanish resident, you're taxed on your worldwide income — the LLC doesn't "disconnect" you from the tax authority.
Place of effective management: if you run the LLC from Spain, the tax authority may consider its effective management sits there and treat it as a Spanish company.
Permanent establishment / ETBUS: the line separating an activity not connected to the U.S. from a permanent establishment with local obligations.
CFC / international tax transparency: rules that may attribute the LLC's profits to you even if you don't distribute them.
VAT: your services may carry Spanish VAT depending on the client and place of supply, with or without the LLC.
Paraguay
territorial regimeTerritoriality: Paraguay taxes Paraguayan-source income; confirm how your LLC's income fits that principle.
RUC and local formality: if you operate or distribute locally, review your registration obligations (RUC).
IRP (10%): personal income tax may apply when distributing profits locally.
Real residency: the favorable treatment requires effective residency, not just formal.
Other countries
review in detail with a local professionalTax residency and substance; confirm the treatment of foreign income.
Worldwide income for residents and possible transparency rules; review current regulations.
Residency and preferential tax regimes (REFIPRE) on foreign entities.
Worldwide income for residents and controlled foreign entity (ECE) rules.
Residency and rules on foreign passive income.