If you own a U.S. LLC from outside the United States, Form 5472 is the one filing you cannot skip. It rarely involves any tax, but missing it can cost $25,000 per form. This guide walks through the IRS instructions for Form 5472 the way they apply to the most common case we see: a single-member LLC owned by one foreign person. If you would rather have it prepared for you, see our Form 5472 filing service.
Who has to file Form 5472
Since 2017, Treasury regulations treat a U.S. single-member LLC that is wholly owned by a foreign person as a corporation for this one purpose (26 CFR § 1.6038A-1). The IRS calls it a foreign-owned U.S. disregarded entity (DE). For income tax it is still ignored, but it must report its dealings with its foreign owner under section 6038A.
You file if all of these are true:
- the LLC was formed in a U.S. state (Wyoming, Delaware, New Jersey or any other),
- it has one owner, and that owner is a foreign individual or a foreign company, and
- during the tax year it had at least one reportable transaction with that owner or another related party.
The last point is where most people get it wrong. “No income” does not mean “no filing”. Money you send from abroad into the LLC’s bank account, the state formation fee you paid with your personal card, and money you take out of the LLC are all reportable. In practice, almost every foreign-owned LLC files from its first year.
Who is not covered here:
- Multi-member LLCs with two or more owners are partnerships for tax and file Form 1065, not a pro forma 1120.
- U.S. corporations that are at least 25% foreign-owned also file Form 5472, but they attach it to their regular Form 1120.
Not sure which group you are in? Our guide for foreign-owned LLCs covers the full picture.
What you actually send: a pro forma 1120 with Form 5472 attached
A foreign-owned DE does not file a real corporate tax return. It files a pro forma Form 1120 whose only job is to carry Form 5472 to the IRS:
- Write “Foreign-owned U.S. DE” across the top of Form 1120.
- Fill in only the LLC’s name and address, item B (the LLC’s EIN) and item E (the boxes for initial return, final return, name change or address change).
- Leave the rest of Form 1120 blank. No income, deductions or tax are reported on it.
- Attach a completed Form 5472 for each related party you had transactions with, plus the statement for Part V.
The LLC needs its own EIN before it can file. If it does not have one yet, it can apply for an EIN with the IRS for free. Foreign owners without an SSN usually apply by fax or mail with Form SS-4, which our EIN application service can handle.
Form 5472 line by line
The current form (revised December 2024) has nine parts. A foreign-owned single-member LLC normally completes Parts I, II, V and VII, and Part III only if there is a related party other than the owner.
| Part | What it asks | What a foreign-owned single-member LLC enters |
|---|---|---|
| Top of form | Tax year | The LLC’s tax year, normally the calendar year |
| Part I Reporting corporation | LLC name, address, EIN, total assets, business activity and code, totals of reportable transactions, number of Forms 5472 filed, countries of business | The LLC’s details; line 1j if it is the first year the LLC files; line 3 checked (“foreign-owned U.S. DE”) |
| Part II 25% foreign shareholder | Name, address, identifying numbers, country of citizenship or organization, countries where the owner files tax returns | The foreign owner, who is treated as the “25% foreign shareholder” |
| Part III Related party | A related party other than the owner | Only if the LLC dealt with another related person or company |
| Part IV | Monetary transactions with a foreign related party: sales, services, rents, royalties, interest, loans | Only if there were such transactions, for example a loan from the owner; many single-member LLCs have none |
| Part V Reportable transactions of a DE | Check the box and attach a statement | Contributions, distributions, formation costs and expenses the owner paid for the LLC |
| Part VI | Non-monetary or less-than-full-value transactions | Only if applicable |
| Part VII Additional information | Questions on interest, royalties, FDII and loans | Answer every question; most single-member LLCs answer “No” |
| Parts VIII–IX | Cost sharing and base erosion payments | Rarely relevant for small LLCs |
Part I: the LLC
Part I describes the LLC itself. Use the same name, address and EIN the IRS has on file. Line 1c is total assets at year end. Lines 1d and 1e ask for the principal business activity and its code from the Form 1120 instructions. Line 1f is the total dollar value of the reportable transactions on this form, and line 1h the total across all Forms 5472 you file for the year. The key box for you is line 3: check it to say the LLC is a foreign-owned U.S. DE.
Part II: the foreign owner
Part II identifies the owner. Three identification boxes matter:
- U.S. identifying number: an SSN or ITIN if the owner has one. Many owners do not, and that is fine.
- Reference ID number: if there is no U.S. number, the LLC creates its own alphanumeric ID for the owner, up to 50 characters, no spaces or special characters. Use the same reference ID every year.
- FTIN: the owner’s tax identification number in their home country. If the owner has none, write “None” or “N/A”.
An ITIN is not required just to file Form 5472. It becomes necessary only when the owner has to file a U.S. return of their own, for example a Form 1040-NR. Our ITIN application service covers that case. The same applies to the tax form payers ask you for: as the owner you sign Form W-8BEN in your own name, not a W-9 for the LLC.
Part V: the transactions
This is the heart of the form for a DE. Check the box and attach a statement that lists each reportable transaction with the owner during the year, with a short description and the dollar amount. The instructions point to “amounts paid or received in connection with the formation, dissolution, acquisition, and disposition of the entity, including contributions to, and distributions from, the entity.”
What counts as a reportable transaction
| Transaction | Example | Reportable? |
|---|---|---|
| Capital contribution | You wire $5,000 from your account abroad to the LLC’s U.S. bank account | Yes |
| Formation costs paid by the owner | You pay the state filing fee and registered agent with your personal card | Yes |
| Expenses paid on the LLC’s behalf | You pay the LLC’s software subscription personally | Yes |
| Distribution | The LLC sends $10,000 of profit to your personal account | Yes |
| Loan | You lend the LLC money, or it lends money to you | Yes (amounts borrowed or loaned go in Part IV) |
| Sales to unrelated customers | The LLC sells products on Amazon or invoices clients | No, these are not related-party transactions |
Clean bookkeeping makes Part V easy: if the LLC’s bank account is reconciled each month, owner contributions and draws are already separated from customer income. If they are not, catch-up bookkeeping is usually the first step before the form can be completed accurately.
Due date, extension and where to send it
| Item | Rule for a calendar-year LLC |
|---|---|
| Due date | April 15 of the following year (the 15th day of the 4th month after year end) |
| Extension | File Form 7004 by April 15; the new deadline is October 15 |
| E-filing | Not available for a foreign-owned U.S. DE |
| By mail | Internal Revenue Service, 1973 Rulon White Blvd., M/S 6112, Attn: PIN Unit, Ogden, UT 84201 |
| By fax | 855-887-7737, at 300 DPI or higher |
For the 2026 tax year, that means April 15, 2027, or October 15, 2027 with an extension. The extension is filed the same way: write “Foreign-owned U.S. DE” at the top of Form 7004, enter the Form 1120 code in Part I, and send it to the same address or fax number. Keep the fax confirmation or the mail tracking receipt; it is your proof of timely filing.
The $25,000 penalty
The instructions set the penalty at $25,000 for each Form 5472 that is not filed when due. If the IRS sends a notice and the form is still missing 90 days later, another $25,000 applies for each 30-day period (or part of one) that the failure continues. A form that is filed but substantially incomplete counts as not filed.
Two points that surprise many owners:
- The penalty applies even if the LLC owes no tax, because it is a penalty for missing information, not for unpaid tax.
- The IRS first-time abatement policy covers late-filing and late-payment penalties on returns, but not this penalty. Relief is possible only by showing reasonable cause.
You can estimate what is at stake for several missed years with our free IRS penalty calculator, which has a Form 5472 mode. If you have missed one or more years, we can prepare the late filings. A penalty relief request itself is made by the taxpayer or a representative authorized to deal with the IRS; we do not represent clients before the IRS.
Records you must keep
Form 5472 filers must keep records that support the related-party transactions they report, under the general IRS recordkeeping rules. In practice, keep:
- bank statements for the LLC’s accounts,
- proof of every transfer between you and the LLC,
- receipts for formation and other costs you paid personally, and
- a copy of each year’s pro forma 1120, Form 5472 and the fax or mailing confirmation.
Common mistakes
- Skipping the first year because the LLC “had no income”. Formation costs and the first deposit are already reportable.
- Leaving Part V empty or forgetting the attached statement.
- E-filing software used for a regular Form 1120. The pro forma return goes by mail or fax only.
- Changing the reference ID every year. It must stay the same for the same owner.
- Assuming Form 5472 covers everything. If the LLC earns income connected with a U.S. trade or business, the owner may also need to file Form 1040-NR. Form 5472 is an information return; it does not replace the owner’s own filing.
Getting it filed
For a single-member LLC with simple transactions, the pro forma 1120 and Form 5472 can be completed in an afternoon once the year’s bank activity is organized. If the LLC’s books are not reconciled, or you have missed earlier years, it is safer to have it prepared. Our Form 5472 filing service covers the pro forma 1120, the Part V statement and the fax filing. We can also take care of the bookkeeping behind it and the owner’s 1040-NR if one is needed. A free 15–30 minute consultation is enough to tell you which of these you need.
