Form 5472 Line-by-Line Guide for Foreign-Owned US LLCs

If you are a non-US resident who owns a single-member US limited liability company (LLC), learning how to fill out Form 5472 and its companion return is an essential yearly chore. For US tax purposes, your LLC is classified as a foreign-owned domestic disregarded entity (foreign-owned U.S. DE), meaning the company does not pay corporate income tax by default, but it must report its ownership and cross-border transactions to the Internal Revenue Service (IRS).

To file correctly, you do not submit Form 5472 alone. You must attach it to a "pro forma" Form 1120 (U.S. Corporation Income Tax Return), writing "Foreign-owned U.S. DE" across the top, and deliver both documents together by fax or dedicated mail. Missing this requirement or submitting an incomplete form exposes your business to an automatic statutory penalty of $25,000 per violation.

In short:

• Foreign owners of single-member US LLCs must file Form 5472 accompanied by a pro forma Form 1120, even if the LLC generated zero revenue.
• The pro forma Form 1120 acts as a cover page; you only complete the business name, address, Employer Identification Number (EIN), and items B and E.
• Reportable transactions on Form 5472 include contributions of capital, distributions, owner loans, reimbursements, and any operational fees between you and the company.
• The packet cannot be submitted through standard commercial e-file platforms; you must fax it to 855-887-7737 or mail it to the IRS PIN Unit in Ogden, Utah.
• The standard due date matches the federal corporate tax deadline (usually April 15), with a 6-month extension available via Form 7004.

Who needs this

Under Internal Revenue Code (IRC) Section 6038A, any domestic disregarded entity that is 100% owned (directly or indirectly) by a foreign person must file Form 5472 when it engages in reportable transactions.

You must file if:

• You are an individual who is not a US citizen or resident alien, or you are a foreign legal entity.
• You own 100% of a US LLC formed under state law (such as Delaware, Wyoming, or New Mexico).
• The LLC has not made an election on Form 8832 to be taxed as a corporation (it remains a disregarded entity).
• The company engaged in at least one reportable transaction during the calendar year (including formation expenses paid from personal funds, capital injections, withdrawals, or sales of goods and services with you or your foreign entities).

You do NOT need this specific filing if:

• Your LLC has two or more owners and is treated as a partnership (partnerships file Form 1065 instead).
• The LLC is 100% owned by a US citizen or permanent resident (green card holder).
• You elected to treat your LLC as a standard C corporation on Form 8832 (in which case you file a standard, full Form 1120 and attach Form 5472 under normal corporate rules).

What you need before you start

Gather the following items before drafting your forms:

• LLC Legal Documents: Your Articles of Organization and Certificate of Formation to confirm the legal name, state of registration, and formation date.
• LLC EIN Confirmation Letter (Form CP 575 or 147C): The official 9-digit US tax identification number issued to your LLC.
• Foreign Tax Identification Number (FTIN): Your personal tax registration number or national identity number from your home country of tax residence.
• Accounting Ledger and Bank Statements: A record of every transaction between you (the owner) and the LLC during the tax year. This includes initial startup contributions, cash deposits, personal funds used to pay state fees or registered agent charges, and owner distributions.
• Principal Business Activity Code: A 6-digit NAICS code representing the LLC's core commercial operations (found in the Instructions for Form 1120 or Form 5472).

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How to fill out Form 5472 and the pro forma Form 1120

A foreign-owned US disregarded entity cannot file Form 5472 as a standalone document. The IRS Instructions for Form 5472 specify that it must be filed as an attachment to a "pro forma" Form 1120. A pro forma return is a shell return used exclusively to carry information; you do not fill in income, deductions, or tax schedules on this Form 1120.

Step 1: The Pro Forma Form 1120

Use the version of Form 1120 (PDF) matching the reporting year. At the very top of the page, above the form title, write or type in bold text: Foreign-owned U.S. DE.

Per the official instructions, you only complete the following identity items on the first page:

Leave Pages 2 through 6 of Form 1120 completely blank (including Schedule C, Schedule J, Schedule K, Schedule L, Schedule M-1, and Schedule M-2).

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Step 2: Form 5472 Walkthrough

Complete Form 5472 (PDF) (Rev. December 2023). All monetary figures must be entered in US dollars, rounded to the nearest dollar.

Part I: Reporting Corporation

All reporting entities must complete Part I. For our purposes, the "reporting corporation" is your single-member LLC.

Leave lines 1i blank unless filing a corporate consolidated return.

Part II: 25% Foreign Shareholder

Report information about the foreign owner on lines 4a through 4e. Lines 5a through 7e remain blank unless there are secondary or intermediate corporate owners.

Part III: Related Party

Part III identifies the person or company on the other side of the reportable transactions. For a single-member LLC transacting directly with its founder, the related party is the founder herself.

Check the box indicating whether the related party is a foreign person or a U.S. person. For a foreign founder, check foreign person.

Part IV: Monetary Transactions Between Reporting Corporations and Foreign Related Party

Part IV tracks money moving between the LLC and the foreign related party (you). Note that transactions between the LLC and independent third parties (such as third-party customers or suppliers) do not appear here.

Common lines for single-member LLCs:

• Line 21 (Other amounts received): Capital contributions made by the founder into the LLC bank account.
• Line 29 (Consideration paid for technical, managerial, etc., services): Consulting fees or service compensation paid by the LLC directly to the founder.
• Line 35 (Other amounts paid): Owner withdrawals or profit distributions taken from the LLC bank account to the founder's personal account.

Leave lines 9–20, 23–28, and 30–34 blank if they do not apply to your operations.

Part V: Reportable Transactions of a Foreign-Owned U.S. DE

Part V applies specifically to foreign-owned disregarded entities. Regulations Section 1.482-1(i)(7) defines transactions broadly to include contributions, distributions, formation costs, and entity dissolution.

• Checkbox: Check the box in Part V if you engaged in any transaction defined under these regulations that was not already captured in Part IV, or to confirm attached statements describing entity formation or equity transactions.
• Attachment: If you paid company formation expenses out-of-pocket, or made capital contributions/distributions, attach a simple statement titled: "Form 5472, Part V - Reportable Transactions of Foreign-Owned U.S. DE". State the nature and US dollar value of the transactions.

Part VI: Nonmonetary and Less-Than-Full Consideration Transactions

Complete this section only if you exchanged non-cash property, barter services, or digital assets with the LLC without full cash consideration. If none, leave the checkbox blank and proceed.

Part VII: Additional Information

All reporting corporations must answer the questions in Part VII:

• Line 37: Check No (unless you physically import commercial goods into the US from yourself or your foreign company).
• Line 38a–c: Leave blank if Line 37 is No.
• Line 39: Check No (cost sharing arrangements do not apply to standard freelance or SaaS LLCs).
• Line 40a: Check No (disallowed interest/royalty deductions under Section 267A).
• Line 41a: Check No (unless making an explicit Section 250 FDII claim).
• Line 42a & 42b: Check No (unless formal related-party debt agreements using IRS safe-haven rates were executed).
• Line 43a & 43b: Do not complete. The instructions specifically instruct: "Do not complete these lines if the reporting corporation is a foreign-owned U.S. DE."

Parts VIII and IX

• Part VIII (Cost Sharing Arrangement): Leave blank.
• Part IX (Base Erosion Payments - Section 59A): Leave blank. Foreign-owned disregarded entities with standard business operations are not subject to the Base Erosion and Anti-Abuse Tax (BEAT).

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Worked example

To see how these rules apply in practice, let us examine a typical founder scenario.

Amélie Martin is a French tax resident living in Paris. On March 15, 2024, she formed Meridian Cloud Solutions LLC, a Delaware single-member LLC providing cloud software architecture consulting.

During 2024, her cash flows were as follows:

• Formation & Setup: Amélie deposited $5,000 from her personal French account into the LLC's US business bank account as startup capital.
• Commercial Revenues: The LLC received $50,000 from corporate clients in the UK and Germany. Because these transactions were with unrelated third parties, they are not reported on Form 5472.
• Operating Expenses: The LLC paid $3,000 to third-party software vendors (AWS, Stripe). These third-party costs are not reported on Form 5472.
• Owner Distributions: Amélie transferred $17,000 from the LLC bank account to her personal account in France as profit distributions.

How the numbers flow to the forms:

1. Pro Forma Form 1120:

   • Amélie writes "Foreign-owned U.S. DE" at the top.
   • She enters "Meridian Cloud Solutions LLC", the Delaware address, and EIN 12-3456789.
   • Box E(1) is checked for an initial return.
   • Income and deduction lines 1 through 37 remain completely blank.
   • She signs the bottom as "Sole Member".

2. Form 5472:

   • Part I, Line 1c (Total assets): $15,000 (the cash balance remaining in the LLC bank account on December 31).
   • Part I, Line 1f & 1h (Total gross payments): $22,000 (calculated as $5,000 capital contribution + $17,000 distribution).
   • Part I, Line 3: Checked (Foreign-owned U.S. DE).
   • Part II & III: Amélie lists herself, her French address, and her French FTIN.
   • Part IV, Line 21 (Other amounts received): $5,000 (her initial capital contribution).
   • Part IV, Line 22: $5,000.
   • Part IV, Line 35 (Other amounts paid): $17,000 (her owner distributions).
   • Part IV, Line 36: $17,000.
   • Part V: Checked, with an attached statement detailing the $5,000 contribution and $17,000 distribution.
   • Part VII: Lines 37, 39, 40a, 41a, and 42 checked "No". Lines 43a–43b left completely blank.

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How and where to file

Foreign-owned US disregarded entities cannot file Form 5472 electronically through regular tax software. You must submit your packet by fax or mail using the dedicated IRS intake unit.

Dedicated Filing Methods

Assemble your packet in this order:

1. Pro forma Form 1120 (with "Foreign-owned U.S. DE" written at the top and signed).
2. Form 5472.
3. Attached statements (such as the Part V explanation).

Submit via one of the two official channels:

• By Fax (Preferred): Fax your complete document package to: 855-887-7737 (transmission resolution must be 300 DPI or higher).
• By Mail: Send via postal service or courier to: Internal Revenue Service 1973 Rulon White Blvd M/S 6112 Attn: PIN Unit Ogden, UT 84201

Do not use the general corporate filing addresses listed in the Form 1120 instructions.

Deadlines and Extensions

• Standard Deadline: Form 5472 follows the federal corporate income tax deadline, which is generally April 15 following the close of the calendar tax year.
• Requesting an Extension: You can obtain an automatic 6-month extension by filing Form 7004 (PDF).
  • On Form 7004, Part I, Line 1, enter Form Code 12 (the code for Form 1120).
  • Write "Foreign-owned U.S. DE" across the top of Form 7004.
  • Enter -0- on lines 6, 7, and 8.
  • You must fax or mail Form 7004 to the same Ogden, UT fax number or address shown above by the regular due date.
  • An extension moves your filing deadline to October 15.

Proof of Filing

The IRS does not issue stamped receipts for faxed or mailed informational returns. Keep a permanent record consisting of:

• A complete PDF copy of the exact package sent.
• The transmission confirmation sheet generated by your fax service showing date, time, and successful delivery.
• If mailed, registered mail or courier delivery tracking receipts confirming arrival at the Ogden PIN Unit.

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Common mistakes to avoid

• Filing Form 5472 alone: The IRS will reject Form 5472 if it is not physically attached to a pro forma Form 1120.
• Entering operational revenues on Form 1120: Putting your business income or business deductions on lines 1–28 of Form 1120 violates the pro forma instructions and can cause the IRS to classify your LLC as a taxable corporation.
• Reporting third-party customer sales in Part IV: Lines 9 through 36 are strictly for transactions between the LLC and the foreign related party (you). General customer revenue does not belong here.
• Failing to report $0 revenue years: If your LLC was active and had any movement of money (such as paying renewal fees or contributing capital), Form 5472 is required even if your client sales were zero.
• Mailing to the standard Form 1120 address: Foreign-owned disregarded entities must send filings exclusively to the Ogden PIN Unit. Standard IRS service centers will experience delays or miss processing the return.
• Forgetting to check Part I, Line 3: Omitting the checkbox for "Foreign-owned U.S. DE" often results in the IRS misclassifying your entity as a delinquent C corporation.

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Your checklist

1. Obtain your LLC's legal documents and verify the official EIN issued by the IRS.
2. Calculate all cash movements between your personal accounts and the LLC bank account during the tax year.
3. Download the current official versions of Form 1120 and Form 5472.
4. Prepare the pro forma Form 1120: enter name, address, EIN, check Box E, and write "Foreign-owned U.S. DE" across the top.
5. Sign and date page 1 of Form 1120. Leave all financial schedules blank.
6. Complete Form 5472: fill Parts I, II, III, IV, V, and VII.
7. Prepare a brief statement for Part V detailing owner contributions and distributions.
8. If extra time is required, file Form 7004 before the April deadline to extend to October.
9. Fax the combined packet to the IRS PIN Unit at 855-887-7737.
10. Archive the complete signed packet along with the successful fax transmission confirmation sheet.

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Official resources

• Form 5472 (PDF): The official information return for foreign-owned entities.
• Instructions for Form 5472 (PDF): Detailed line-by-line rules, definitions, and filing requirements.
• About Form 5472: IRS landing page with updates and revisions.
• Form 1120 (PDF): The corporate income tax return used as the required pro forma cover return.
• Form 7004 (PDF): The application for an automatic 6-month filing extension.
• Instructions for Form 7004 (PDF): Rules and procedures for requesting a business filing extension.
• Form SS-4 (PDF): Application for an Employer Identification Number.
• Apply for an EIN: Official IRS overview of the EIN application process.

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Frequently asked questions

What is the penalty for filing Form 5472 late?

The IRS assesses an automatic penalty of $25,000 for failing to file Form 5472 on time, or for filing a substantially incomplete return. If the IRS issues a failure notice and the return is not submitted within 90 days, an additional $25,000 penalty applies for every 30-day period the failure continues.

Can I file Form 5472 electronically?

No. Foreign-owned U.S. disregarded entities cannot use standard electronic filing methods. You must submit your pro forma Form 1120 and Form 5472 by fax or mail directly to the IRS Ogden PIN Unit.

Do I have to file if my LLC had no transactions at all?

If the LLC had zero financial activity, no bank accounts opened, no capital contributions, no startup expenses paid by the owner, and no fees paid, there are technically no reportable transactions under Regulations Section 1.482-1(i)(7). However, most founders pay formation or state franchise fees during the year, which count as reportable transactions. Filing a return is widely considered the safest way to avoid accidental penalty notices.

Does filing Form 5472 mean my LLC has to pay US income tax?

No. Form 5472 and the pro forma Form 1120 are strictly informational filings under Section 6038A. A disregarded entity owned by a nonresident is not subject to US corporate income tax simply because it files these forms. Whether you owe personal US income tax depends on whether your activities generate income effectively connected with a US trade or business (ETBUS).

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Filing US tax paperwork from abroad can feel daunting, but once you break down each form into concrete steps, the process is straightforward. If you want professional assistance preparing your annual reporting, explore our Form 5472 + Pro Forma 1120 service or request a free preliminary check to confirm your filing obligations.