Form 5472 for a foreign-owned single-member LLC
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Form 5472 is the IRS report a single-member LLC owned by a non-resident files when it has dealings with its owner or other related parties. It goes attached to a short pro forma Form 1120, by fax or mail, and missing it costs $25,000. Your accountant prepares it; EXNNA forms the LLC and hands you the documents they'll ask for.
Why does a foreign-owned LLC file Form 5472?
For income tax, a one-member LLC is by default "disregarded": the IRS looks through it to the owner. An LLC with two or more members is a partnership, and any LLC can file Form 8832 to be taxed as a corporation (IRS, LLC).
Form 5472 follows a separate rule. The IRS treats a U.S. disregarded entity wholly owned by a foreign person as a reporting corporation (Instructions for Form 5472). That's how a single-member LLC owned from abroad ends up filing a corporate form.
Who has to file Form 5472?
A reporting corporation files when it had a reportable transaction with a foreign or domestic related party. For a one-owner LLC, the related party can be you. Your accountant checks the year's movements against the instructions and tells you whether you file.
How is Form 5472 filed?
| Item | What the IRS instructions say |
|---|---|
| Attached to | A pro forma Form 1120, with only the name, address and items B and E |
| How to send | Fax or mail to the dedicated address. No e-filing |
| Due date | The pro forma Form 1120's due date, including extensions |
| Penalty | $25,000 for not filing; the same for not keeping required records |
What does the $25,000 penalty cover?
Two separate failures: not filing Form 5472 when you had to, and not keeping the records the form requires. Each one carries the full amount. Good bookkeeping from day one is the cheapest way to avoid both.
Does EXNNA file Form 5472?
No. EXNNA forms your LLC in New Mexico (NM), a U.S. state, and doesn't prepare tax returns. What we give you is the paper base an accountant needs:
- Articles of Organization, filed with the State
- Operating Agreement, in PDF and editable DOCX
- The EIN, if you add our assistance. Without an SSN, see how to get an EIN without an SSN
The company needs a bank account too, and banks ask for the same set; see opening a U.S. bank account for a non-resident LLC.
What does a New Mexico LLC file with the State?
Nothing yearly. A domestic New Mexico LLC has no annual report and no annual State fee. The comparison with other states is in LLC annual report requirements, and FinCEN's rules are in our BOI report guide.
What to ask your accountant
- Did my LLC have a reportable transaction with me or another related party this year?
- What's my due date, and do I need an extension?
- Which records should I keep, and how?
- Which other U.S. filings apply to my LLC?
Form your LLC online for $200, State fee included. Every option is on our pricing.
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FAQ
- Does a foreign-owned single-member LLC file Form 5472?
- Yes, when it had a reportable transaction with a related party, which can be you, the owner. The IRS treats that LLC as a reporting corporation.
- Can I e-file Form 5472?
- No. It goes by fax or mail to the address in the IRS instructions, attached to a pro forma Form 1120.
- What is the penalty for not filing Form 5472?
- $25,000 for not filing, and $25,000 for not keeping the records the form requires.
- When is Form 5472 due?
- On the due date of the pro forma Form 1120, including extensions.
Sources
- IRS, Instructions for Form 5472 (checked )
- IRS, Limited liability company (LLC) (checked )
General information, not legal or tax advice.