How to File Form 5472 for a Foreign-Owned LLC

Most foreign owners of a US single-member LLC learn about Form 5472 the hard way: a friend mentions the $25,000 penalty, or a bank asks whether the LLC filed anything with the IRS last year. The form itself is short. The filing process is what trips people up, because it does not work like a normal US tax return. You can’t e-file it, it goes to a special IRS unit in Ogden, Utah, and it has to sit on top of a mostly blank Form 1120.

This guide walks through the filing itself, step by step. If you’re still working out whether your LLC needs to file at all, start with our article on who must file Form 5472 and how the penalty works, then come back here.

What you are actually filing

A foreign-owned single-member LLC is a “disregarded entity” for US income tax. It normally files nothing on its own. The IRS makes an exception for reporting: the LLC is treated as a corporation for Form 5472 purposes, so it files two documents together:

• A pro forma Form 1120. Only a few items are completed: the LLC’s name and address, item B (the EIN) and item E (the boxes for an initial, final, name change or address change return). No income figures and no tax.
• Form 5472 attached behind it, reporting the money and property that moved between the LLC and its foreign owner or other related parties during the year.

Both pages go in as one package. The IRS instructions ask you to write “Foreign-owned U.S. DE” across the top of the Form 1120.

Step 1: Gather what you need before you start

Collect these before you open a single form. Missing any one of them is the usual reason a filing stalls in March.

Item	Where it comes from
LLC’s EIN	IRS confirmation letter CP 575. Without an EIN the LLC cannot file.
Owner’s foreign tax ID or US ID	Passport country tax number, or an ITIN or SSN if the owner has one
Owner’s address and country of citizenship, organization or residence	Owner records
Total assets at year end (Form 5472, line 1c)	LLC bank statements and any other assets the LLC holds
Every transfer between the owner and the LLC	Bank statements: capital put in, money taken out, loans, payments for services, formation costs paid by the owner

That last row matters most. Money the owner sends in to open the bank account is a reportable transaction. So is the $300 the owner paid personally to form the LLC, and so is every draw back to the owner’s own account. Many first-time filers report nothing because the LLC “didn’t make money”, and that’s the mistake the penalty is built to catch.

Not sure about the ID numbers? Our guide to EIN vs ITIN for foreign business owners explains which one the owner needs.

Step 2: Complete the pro forma Form 1120

Use the Form 1120 for the year you’re reporting. Fill in only:

• The LLC’s legal name and address at the top
• Item B, the employer identification number
• Item E, the checkboxes, for example “Initial return” in the LLC’s first year

Write “Foreign-owned U.S. DE” across the top of page one. Leave the income and deduction lines blank. The owner (or an authorized officer) signs it.

Step 3: Complete Form 5472

Form 5472 has seven parts. A typical single-owner LLC uses four of them.

• Part I describes the LLC: name, EIN, total assets, the business activity and its principal country of business.
• Part II identifies the 25% foreign owner. For a single-member LLC, that’s the one owner.
• Part IV lists the money that moved between the LLC and the foreign related party. Amounts go on specific lines, such as amounts borrowed, amounts loaned, payments for services and other amounts paid or received.
• Part V is the box most people miss. A foreign-owned DE checks it if it had other transactions with the owner, such as contributions to the LLC, distributions from it, or costs of forming the LLC. These are described on a short attached statement.

Use full dollar amounts. Reasonable estimates are allowed in some cases under the instructions, but a guess with no records behind it is not a reasonable estimate.

Step 4: Send it to the IRS by fax or mail

This is where foreign-owned LLCs differ from everyone else. According to the IRS Instructions for Form 5472, a foreign-owned US DE cannot file Form 5472 electronically. You have two options:

• Fax the package at 300 DPI or higher to 855-887-7737
• Mail it to: Internal Revenue Service, 1973 Rulon White Blvd, Mail Stop 6112, Attn: PIN Unit, Ogden, UT 84201

Do not use the Form 1120 mailing addresses. They’re for regular corporations, and a 5472 package sent there can sit in the wrong pile while the deadline passes. Keep the fax confirmation page or a tracked courier receipt. If the IRS ever says it never arrived, that proof is your best defense.

Step 5: Know the deadline, and extend it if you need to

For an LLC on a calendar year, the package is due April 15. The LLC uses the same tax year as its owner for US purposes, or the calendar year if the owner has none.

If you need more time, file Form 7004 by April 15. That gives an automatic six months, so the new deadline is October 15. Three details make the extension valid:

1. Enter the code for Form 1120 in Part I, line 1
2. Write “Foreign-owned U.S. DE” across the top
3. Fax or mail it to the same Ogden fax number or address above, not the normal Form 7004 address

An extension gives you more time to file. It doesn’t fix a filing that was due in an earlier year.

What it costs to file

The IRS charges nothing to file. The cost is preparation. At NexusWorks, a Form 5472 with the pro forma 1120 starts from $350 per year, and the price goes up with the number of transactions and whether earlier years need catching up. You can see the full list on our pricing page. Non-US founders who want formation, the EIN and this filing handled together usually choose the Global Founder package on our company formation page.

If you already missed a year

Don’t wait for a letter. File the missing years as soon as the records are rebuilt, each one complete and on its own pro forma 1120. A late but complete filing, together with a clear explanation, is a far better starting point than an IRS notice that arrives first. Depending on the facts, a penalty abatement request may be possible. That’s a judgment call for a CPA who has seen the bank statements, not something to try from a template.

Frequently asked questions

Can I e-file Form 5472 for my foreign-owned LLC?

No. The IRS instructions say a foreign-owned US disregarded entity cannot file Form 5472 electronically. It has to be faxed to 855-887-7737 or mailed to the PIN Unit in Ogden, Utah.

Is Form 5472 due if my LLC had no income?

Usually yes. The form reports transactions with the owner, not income. Putting money into the LLC, paying its formation costs or taking money out are all reportable, even in a year with zero sales.

How do I extend the Form 5472 deadline?

File Form 7004 by April 15 using the Form 1120 code, write “Foreign-owned U.S. DE” at the top, and fax or mail it to the same Ogden unit. The deadline moves to October 15.

What is the penalty for not filing Form 5472?

$25,000 for each year a required form is not filed on time and in the right manner. A substantially incomplete form counts as not filing, and more penalties can follow if the failure continues after an IRS notice.

Want this done correctly the first time? Book a call with our team and bring your LLC’s bank statements. We’ll tell you exactly what needs to be reported and by when.