If you wanted to set up an international LLC, would you need an LLC in every separate state or country?

Unfortunately, the U.S. is one of few countries that actually have limited liability companies (LLCs). Therefore, there is no international equivalent of the Madrid Protocol (international patent) for LLCs. However, many countries have entities similar to an LLC, but just named differently. Despite this, each foreign country will have its own laws concerning foreign ownership of domestic entities. This will require you to research each country’s pertinent laws.

It’s worth noting that doing business abroad can complicate compliance reporting requirements when tax time comes. This is because the U.S. taxes its citizens on their worldwide income, regardless of where the money was made. The U.S. permits a credit (the “foreign tax credit”) against U.S. tax for taxes paid to other countries on income sourced to such other countries, so long as the effective rate paid to the other country does not exceed the effective rate paid to the U.S. on that same income.

Honestly, your question requires the assistance of an international business / tax attorney. It’s simply too complex for you to try and figure it out on your own (or with the help of Quora answers). LawTrades can certainly help you with this. We’ve helped numerous startups link with experienced and affordable attorneys for their various startup needs. Wish I could have helped further!