Form 5472 for Foreign-Owned US LLCs: A Complete Guide

If you are a non-US person who owns a single-member US LLC, Form 5472 is the most important filing you cannot skip. It is an information return, not a tax bill, but missing it carries a $25,000 penalty. This guide explains who must file, what to report, and how to stay compliant.

What Is Form 5472?

Form 5472 is an IRS information return used to report transactions between a US business and its foreign owner or other related foreign parties. For most international founders it applies because their single-member LLC is treated as a "disregarded entity" for US tax purposes. The LLC itself is not taxed, but the IRS still wants visibility into money moving between you and your company.

Because a disregarded entity does not file its own income tax return, Form 5472 is attached to a pro forma Form 1120 (a mostly blank corporate return used only as a cover page). The two are filed together.

Who Must File

• Foreign-owned single-member LLCs (disregarded entities) with at least one reportable transaction. This is the most common case for non-resident founders.
• US corporations that are 25% or more foreign-owned.

If your LLC has two or more members it is taxed as a partnership by default and files Form 1065 (with Schedule K-1s) instead of Form 5472. If you elected corporate taxation, your filing requirements change as well.

Reportable Transactions

A reportable transaction is almost any value that moves between you and your LLC, or between your LLC and other foreign parties related to you. Common examples:

• Capital you contribute to start or fund the LLC
• Money you withdraw or distribute to yourself
• Loans to or from the LLC
• Amounts paid for services, rent, royalties, or interest
• Reimbursed expenses

The Pro Forma Form 1120

"Pro forma" means you complete only the identifying information at the top of Form 1120, write "Foreign-owned U.S. DE" across the top, and attach Form 5472. You do not calculate corporate income tax on it. The 1120 simply acts as the transmittal document for the 5472.

Deadlines and Extensions

For calendar-year LLCs, Form 5472 and the pro forma Form 1120 are due by April 15 (the 15th day of the fourth month after the end of your tax year). You can request an automatic six-month extension by filing Form 7004 before the deadline, which moves the due date to October 15.

Penalties for Not Filing

The penalty for failing to file a complete and correct Form 5472 on time is $25,000 per form, per year. If the failure continues after the IRS sends formal notice, additional penalties can apply. There is no small "first offense" discount, which makes this one of the most expensive filing mistakes a small business can make.

How to File

• Get an EIN for your LLC if you do not already have one (no SSN required).
• Gather your reportable transactions for the year (contributions, withdrawals, loans, payments).
• Complete Form 5472 and the pro forma Form 1120.
• File by mail or fax to the IRS by the deadline. These forms cannot be e-filed by individuals through most consumer software.

How StartGlobal Helps

Federal tax filing, including the forms non-resident owners need such as Form 5472 and the pro forma Form 1120, is included in your $149/month plan. We track your deadlines, prepare the forms accurately, and file them on time so you never risk the $25,000 penalty. See Federal Tax Filing or read about your broader US tax obligations as a non-resident.

Frequently Asked Questions