Form 5472 for foreign-owned LLCs: who files, when, and how
A single-member US LLC owned by someone who isn't a US person has one federal filing that surprises almost everyone: Form 5472, attached to a pro forma Form 1120. It's due every year, even when the LLC earned nothing.
Who has to file
Since tax years beginning on or after January 1, 2017, a US LLC with one owner who is a foreign person is treated as a corporation for this reporting rule. That covers:
- a single-member LLC owned by a non-US individual;
- a single-member LLC owned by a foreign company;
- a US corporation that is at least 25% foreign-owned (it attaches Form 5472 to its regular Form 1120).
"Disregarded for income tax" doesn't mean "no filing". The LLC still reports its dealings with its owner.
What gets reported
Form 5472 lists transactions between the LLC and its foreign owner. For a foreign-owned single-member LLC this includes:
- money you put into the LLC (contributions), including paying the formation fees yourself;
- money you take out (distributions);
- loans to or from the LLC and repayments;
- payments for services, sales and other amounts between you and the LLC;
- expenses you paid personally on the LLC's behalf.
Forming the LLC and funding its bank account are reportable on their own, which is why a company with zero revenue still files.
When it's due
For a calendar-year LLC, the pro forma 1120 with Form 5472 is due on April 15 of the following year. File Form 7004 by that date to get an automatic extension to October 15. If the 15th falls on a weekend or holiday, the deadline moves to the next business day.
How it's filed
A foreign-owned single-member LLC can't send this package through the regular IRS e-file system. You fill in only the name, address and EIN section of Form 1120, write "Foreign-owned U.S. DE" across the top, attach Form 5472 and a statement describing the Part V transactions, and send it by fax or mail to the address in the current Form 5472 instructions. Check the instructions on irs.gov before you send, because fax numbers and addresses change.
What you need before filing
- the LLC's EIN;
- the owner's name, address, country of citizenship and country of tax residence;
- the owner's foreign tax ID number, if there is one;
- a full list of money that moved between you and the LLC during the year;
- total assets at year-end, which for most small LLCs is the bank balance on December 31.
Keeping your books through the year makes the last two easy: every transfer between you and the LLC is already marked and totaled.