Form 5472: the filing many foreign-owned LLCs miss
If you live outside the US and own a single-member LLC here, the IRS expects Form 5472 every year, even when the company earned nothing.
A US limited liability company with one foreign owner is usually treated as a “disregarded entity” for income tax. Many owners read that as “nothing to file.” That is not the case.
What the IRS requires
A foreign-owned single-member LLC must file Form 5472 every year, attached to a pro forma Form 1120. The form reports transactions between the LLC and its foreign owner or other related parties, such as:
- Money you put into the company or take out of it
- Loans between you and the LLC
- Expenses you pay for the company, or the company pays for you
When it is due
For a calendar-year LLC, the filing is due April 15. Form 7004, filed by that date, extends it to October 15.
The penalty
Not filing Form 5472, or filing an incomplete one, carries a penalty of $25,000 for each year. It can apply even when the LLC had no income.
The first year counts
The first filing covers the year the company was formed. Paying the formation costs yourself is already a transaction that must be reported.
What we need from you
- The LLC’s EIN and formation date
- A list of every transfer between you and the company during the year
- Your foreign address and tax identification number
We prepare Form 5472 and the pro forma 1120 for foreign owners every year. If you are not sure your company has filed, send us the EIN and we will review it with you.