Form 5472 for Foreign-Owned LLCs: Essential FAQs (2025)

MyFreetaxAmerica

• 4 min read
Form 5472 for Foreign-Owned LLCs: Essential FAQs (2025)

If you're a non-US resident who owns a single-member LLC in the United States, you need to understand Form 5472. This FAQ guide answers the most important questions about filing requirements and staying compliant with the IRS.

⚠️ Critical: The penalty for not filing Form 5472 is $25,000 minimum.

1. What is Form 5472 and who must file it?

Form 5472 is an annual information return required from foreign-owned U.S. LLCs. You must file if you're:

  • A non-US resident owning a single-member LLC
  • A foreign company owning a single-member LLC
  • A foreign owner holding 25%+ of a multi-member LLC taxed as a corporation

According to the IRS, you're a foreign person if you're a non-resident alien, foreign company, or foreign trust/estate.

Note: U.S. citizens don't file Form 5472, even if living abroad. Multi-member LLCs taxed as partnerships file Form 1065 instead.

2. My LLC has no income. Do I still need to file?

Yes! Even dormant LLCs with zero revenue must file Form 5472. The money you paid to form your LLC counts as a "reportable transaction." There are no exceptions for inactive LLCs.

3. What are reportable transactions?

Any money or property moving between you and your LLC:

  • Capital contributions (money you invest)
  • Capital distributions (money you take out)
  • LLC formation costs
  • State filing fees you paid personally
  • Loans to/from the LLC

4. Can I file Form 5472 myself without an expensive accountant?

Absolutely! MyFreeTaxAmerica.com makes it easy and affordable.

Instead of paying thousands to accountants, use software designed specifically for foreign LLC owners:

✓ Step-by-step guidance through every section
✓ Automatic error checking to prevent $25,000 penalties
✓ Pro forma Form 1120 included
✓ Massive savings vs. traditional accounting fees

With penalties this high, you need accuracy—but you shouldn't pay thousands for it. MyFreeTaxAmerica.com gives you professional results at a fraction of the cost.

5. What forms do I actually need to file?

You need two forms:

Form 5472 - The main information return
Form 1120 - Pro forma (simplified version)

For Form 1120, you only complete:

  • LLC name and address
  • Section B (EIN)
  • Section E (check "Initial return" for first year)
  • Write "Foreign-owned U.S. DE" at the top
  • Sign at the bottom as "Owner"

Leave everything else blank. MyFreeTaxAmerica.com walks you through both forms.

6. Do I need an EIN before filing?

Yes! Your LLC must have an Employer Identification Number.

7. When is Form 5472 due?

Due date: April 15th each year (for calendar year LLCs)

Example: LLC formed in 2024 → File by April 15, 2025

Need more time? File Form 7004 for a 6-month extension until October 15th.

8. Where do I send the forms?

Mail to:
Internal Revenue Service
1973 Rulon White Blvd.
M/S 6112, Attn: PIN Unit
Ogden, Utah 84201

Fax: 855-887-7737

Always verify the address in Form 5472 instructions as it may change.

9. What are the penalties for not filing?

Penalties are severe:

  • First violation: $25,000
  • Continued non-compliance: Additional $25,000 every 30 days
  • Criminal charges possible: Under IRS Code 7203, 7206, and 7207

This is why using reliable software like MyFreeTaxAmerica.com is critical—it prevents costly mistakes.

10. What records must I keep?

You must maintain:

  • All LLC transaction records
  • Formation documents
  • Bank statements and receipts
  • Proof of all information reported on Form 5472

Keep these for at least 3 years after filing.

11. Are there other tax forms I might need besides Form 5472?

Possibly, depending on your situation:

  • Form 1040NR - Nonresident Alien tax return
  • ITIN - Individual Taxpayer Identification Number
  • FBAR - Foreign bank account reporting
  • State taxes - Varies by state

Check IRS tax treaties (60+ countries) for benefits. Consult an accountant for personal tax advice; MyFreeTaxAmerica.com handles Form 5472 compliance.

12. Do I need to pay U.S. taxes on my LLC income?

It depends on:

  • Your country of residence
  • How you generate income
  • Whether you're engaged in U.S. trade or business
  • Available treaty benefits

Form 5472 is an information return, not a tax return. Tax obligations are separate and require professional consultation.

13. When should I hire an accountant instead of using software?

Consider professional help for:

  • Multiple related parties with complex transactions
  • Questions about U.S. tax obligations beyond Form 5472
  • Advanced international tax planning
  • Multi-state compliance issues

For straightforward Form 5472 filing, MyFreeTaxAmerica.com handles everything you need at a fraction of accountant costs.

14. How do I get started with filing?

Your 4-step action plan:

  1. Get your EIN (if you don't have one)
  2. Gather documents: Formation papers, transaction records
  3. Use MyFreeTaxAmerica.com for guided, affordable filing
  4. Submit by April 15th (or October 15th with extension)

Take Action Now

Form 5472 compliance is mandatory for foreign-owned LLCs. With $25,000 penalties on the line, you can't afford to ignore this requirement—but you also shouldn't overpay for compliance.

MyFreeTaxAmerica.com provides:

  • Professional-grade accuracy without accountant prices
  • Step-by-step guidance eliminating guesswork
  • Peace of mind knowing you're compliant

Don't wait—even dormant LLCs must file. The cost of compliance with MyFreeTaxAmerica.com is always less than the cost of penalties.

Disclaimer: This is educational information only, not tax or legal advice. Consult qualified professionals for your specific situation.

Helpful Resources

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