A foreign-owned LLC in the US has annual filing duties even if it made no money, and some of these are simple enough to handle with the right software while others call for a licensed professional. This guide explains what is due each year, where MyCG.AI and Run or Scale help, and when you should bring in a CPA.
What every foreign-owned LLC must handle each year
If you own a single-member LLC and you are not a US person, the IRS treats your LLC as a reporting entity even when it is disregarded for tax purposes. The main annual items are:
- Bookkeeping, so you have accurate records of income, expenses, and capital contributions.
- Form 5472 with a pro forma 1120, due by 15 April. This is an information return, not a tax bill, but the penalties for missing it are severe.
- Your state's annual report, which keeps your LLC in good standing. Fees and deadlines vary by state, so check the specific state's site for your due date.
- Sales tax, if your business has a taxable footprint in a state, either through physical presence or economic nexus from sales volume.
- BOI reporting is different. Under the current 2026 interim FinCEN rule, US-formed companies are exempt, so this is not an active requirement right now. Rules can shift, so check FinCEN's site before you assume this stays the same.
None of this depends on whether you took a salary or transferred money to yourself. Even a dormant LLC with a bank account and no sales still needs the 5472 and the state report.
What software and MyCG.AI cover on their own
A lot of the yearly workload is mechanical. MyCG.AI, the platform behind every PowerLaunch plan, handles:
- Transaction tracking with AI categorization, so your books stay current without manual entry.
- Stripe invoicing, so you can bill clients and reconcile payments in one place.
- Live financial reports, so you can see your position at any time instead of waiting for year end.
- Multiple bank connections, useful once you have accounts with more than one bank.
- Monthly and quarterly closings, which keep your numbers clean going into tax season.
This covers the bookkeeping side well. It does not replace a professional's judgment on how to file Form 5472 correctly, how to handle a multi-member ownership change, or how to respond if the IRS sends a notice.
When you actually need a CPA
A single owner running a simple LLC with basic transactions can often get by with good software and a straightforward annual filing. A CPA becomes necessary in these situations:
| Situation | Why it needs a CPA |
|---|---|
| US trade or business (ETBUS) | Determines whether you owe US tax on top of the information filing, not just a reporting requirement |
| Multi-member LLC | Partnership-style tax treatment adds complexity to how income and basis are tracked |
| Employees in the US | Payroll tax deposits and filings have strict deadlines and penalties |
| US real estate ownership | Depreciation, withholding rules, and possible state-level filings apply |
| C-Corporation | Corporate tax returns and shareholder-level rules are more involved than a disregarded LLC |
If none of these apply to you, your filing burden is lighter, but Form 5472 still needs to be done correctly. Mistakes on this form are one of the most common causes of IRS penalty notices for foreign-owned LLCs, so even a simple case benefits from a professional review.
How to choose a tax professional
Look for someone who works specifically with foreign-owned US entities, not just general small business clients. Ask directly whether they have filed Form 5472 before, and how they handle communication if you are in a different time zone. Confirm they understand disregarded entity rules if you are a single-member LLC, since this is a narrow area that general practitioners sometimes get wrong. If you are already leaning toward a corporation structure, ask about their experience with corporate returns specifically, since the filings are different from a single-member LLC.
What PowerLaunch Run and Scale include
PowerLaunch's Run plan is built around this exact need. For $1,995 a year, it includes everything in Launch, plus:
- Annual state report filing, so you do not track deadlines yourself.
- A licensed tax professional consultation, so you get expert input on your specific situation.
- Business IRS tax filings, covering the federal side including the 5472 and pro forma 1120 where applicable.
- Transaction tracking with AI categorization, Stripe invoicing, live financial reports, and multiple bank connections through MyCG.AI.
- Monthly and quarterly closings.
Scale, at $2,995 a year or $329 a month, adds a dedicated bookkeeper, expedited EIN processing, free dissolution if you ever wind down the company, and live call scheduling based on availability. This is the better fit if your situation includes employees, multiple owners, or real estate, where ongoing hands-on support matters more.
Launch, at $295 a year, covers formation, the EIN, your operating agreement or bylaws, registered agent, a virtual mailing and business address, and the AI assistant in MyCG.AI. It does not include the annual filings or tax consultation, so if you go this route, you will need to arrange your Form 5472 and state report filing on your own or through a separate professional.
State filing fees are always billed at cost on top of any plan, and PowerLaunch's guarantee covers formation errors caused by PowerLaunch, corrected at their cost with that portion of the fee refunded. State fees themselves are never refundable.
What to do next
If you are not sure whether your situation needs a CPA or just good bookkeeping software, book a free 20-minute consultation at powerlaunch.solutions/book and walk through your specific setup. If you already know you want the annual filings and tax support handled for you, go to powerlaunch.solutions/signup and choose Run or Scale based on whether you have employees, multiple owners, or real estate in the mix.
