Who has to file
Since 2017, a US single-member LLC that is owned by a foreign person and treated as a disregarded entity must file Form 5472 every year. "Foreign person" means an individual who is not a US citizen or resident, or a foreign company.
This applies even when the LLC had no income, no customers and no bank account. If the LLC existed for any part of the year, there is usually something to report, if only the formation costs the owner paid.
What gets filed
Two forms go together: a pro forma Form 1120, the corporate return, filled in only with the company's name, address, EIN and a few lines, and Form 5472 attached to it. The LLC does not pay corporate tax by filing the 1120; it is just the cover document the IRS requires.
Form 5472 lists the foreign owner and every "reportable transaction" between the LLC and its owner or other related parties during the year.
What counts as a reportable transaction
- Money the owner put into the LLC, for example to pay formation fees.
- Money the LLC paid to the owner, such as distributions.
- Loans between the owner and the LLC.
- Payments for services, rent or goods between them.
- Expenses the owner paid personally on the LLC's behalf.
Payments from customers are not reportable transactions with a related party, but they still matter for record keeping. Keep a clean business bank account and you will have most of what the preparer needs.
Deadline and extension
For a calendar-year LLC the filing is due by April 15 of the following year. Form 7004 extends it six months, to October 15. The extension must be filed before the original deadline.
The IRS does not accept these forms through its free online systems. They are typically sent by fax or mail, or e-filed through a tax professional's software where supported.
The penalty
Failing to file a complete Form 5472 on time carries a $25,000 penalty per form per year, with further penalties if the failure continues after IRS notice. The IRS has applied it to small, dormant LLCs. This is the single most important yearly task for a foreign-owned LLC.
Our dashboard shows the Form 5472 deadline for each company and reminds you before it. We do not prepare tax returns; a US tax preparer does.
Records to keep
The LLC must keep records supporting what it reports, generally for as long as they may matter to the IRS. In practice: bank statements, invoices, a simple ledger of money between you and the LLC, and copies of each year's filings.
If the LLC has more than one owner
A multi-member LLC is taxed as a partnership by default and files Form 1065 instead, with its own set of foreign partner rules, including possible withholding. This is more involved; work with a tax preparer from the start.
A simple example
Ana, who lives in Portugal, forms a Wyoming LLC in March. She pays the formation and registered agent fees from her personal card, then transfers $2,000 from her personal account to the new LLC bank account in June. In December the LLC pays her $1,500 as a distribution.
Each of those is a reportable transaction: the fees she paid for the LLC, the $2,000 contribution and the $1,500 distribution. Her preparer lists them on Form 5472 with a pro forma 1120, due the following April 15. Ana is a made-up example; real filings depend on the facts.
Working with a preparer
Look for a US tax preparer who handles foreign-owned LLCs regularly and asks you about related-party transactions, not only about income. Send them your bank statements, the EIN letter, the Articles and a list of money moved between you and the LLC. Start in January or February, not in April.
LLCBolt is a filing service, not a law firm or tax adviser. This guide is general information and may not fit your situation. Rules and fees change; check the date above.