Form 5472 for foreign-owned LLCs: The complete 2026 guide to IRS compliance

Form 5472 is an information return that the IRS requires to collect details about transactions between a US entity and its foreign owner or related parties. Foreign-owned single-member LLCs must file this form every year, even when they have no income. The penalties for not filing are steep: $25,000 per year.

If you’re a non-US founder, this form is essential to keep your LLC in US tax compliance.

This guide breaks down everything you need to know about Form 5472 for foreign-owned single-member LLCs: what it is, who must file, the filing steps, deadlines, and common mistakes to avoid.

What is IRS Form 5472?

IRS Form 5472 is an information return that you use to report transactions between your US LLC and yourself as a foreign owner (or your “related parties”). 

An information return is a report that contains information about a taxpayer or their company.  But it does not create a tax liability – so you don’t need to pay any taxes based on this form.

Only specific transactions need to be reported, so-called “reportable transactions”. Those are transactions that occur between the US LLC and the foreign owner or any party related to the LLC owner. 

We’ll explain both concepts, “reportable transactions” and “related parties”, in detail below and give examples.

Who must file Form 5472?

The 5472 form is not only for foreign-owned LLCs but for any US company that has at least 25% foreign ownership. This includes C corporations and multi-member LLCS, if they meet certain requirements.

• Foreign-owned single-member LLC (100% foreign ownership)
• C Corporation with 25% or more of the share controlled by non-US shareholders
• Multi-member LLC that elected to be taxed as corporation and have at least 25% foreign ownership

While all those must file Form 5472, the way they file it differs substantially. This article will briefly cover all filing situations and then focus on single-member LLCs.

Single-member LLC owned by a non-US person or company

This is the most common scenario for foreign founders. 

If you formed a US LLC with only one owner, and that owner is not a US citizen or resident, your company is considered a foreign-owned single-member LLC.

A foreign-owned single-member LLC must file each year, even if your LLC has no income or no US clients.

Form 5472 cannot be filed alone; it must be filed together with another IRS form, that is filled out in a specific way..

US tax forms for a single-member LLCs with foreign owner:

• IRS Form 5472
• Pro forma Form 1120

If your LLC has any “effectively connected income” (ECI), you will need to file additional tax forms and may need to pay US taxes. See our guide to the taxation of foreign-owned single-member LLCs for a deep-dive into this topic.

Multi-member LLCs with foreign members

When your LLC has two or more owners, it’s typically taxed as a partnership. Form 5472 only applies to corporations, not to partnerships. So, unless the LLC elected to be taxed as a corporation, it does not file 5472.

US partnership tax filing requirements:

• Form 1065 (partnership return)
• Schedule K-1 for each partner
• Form 8805 for foreign partner withholding

If your multi-member LLC includes both US and non-US members, you may need to file additional IRS forms.

C Corporations owned by foreign individuals or companies

If your US entity is a C Corporation and 25% or more of it is owned by a foreign person or company, you must also file Form 5472.

Filing requirements include:

• Form 1120 corporate income tax return
• Form 5472 

IRS Form 5472 filing requirements by entity type

Here’s a quick summary of which entity types must file 5472:

Entity Type	Foreign ownership	Form 5472 Required?	Typical Tax Return
Single-member LLC with non-US owner	100%		Pro forma 1120 + 5472
Multi-member LLC (foreign + US members)	Partial or full		Form 1065 + K-1s
C Corporation with ≥25% foreign ownership	Partial or full		Form 1120 + 5472

Need help with your reporting requirements? Our experienced team has worked with founders globally to keep them US tax compliant. 

As you can see, form 5472 never stands alone — it’s always filed together with Form 1120. How you fill out Form 1120 depends on your business type. It’s different for a single-member LLC than for a C Corp.

Important tip: Some non-US founders mistakenly file Form 5472 for multi-member LLCs taxed as partnerships. That’s incorrect and can create confusion or penalties.

Pro forma Form 1120 for single-member foreign-owned LLCs

If you own a US LLC with one foreign owner, the IRS treats your company as a “disregarded entity” for tax purposes — meaning it’s ignored for income tax but not for reporting obligations.

To report to the IRS each year, you must:

1. Prepare a pro forma Form 1120 (basically, the first page of a corporate tax return form, used only as a cover sheet, and
2. Attach Form 5472, which reports transactions between your LLC and you (the foreign owner) or other related parties.

Think of Form 1120 here as the envelope, and Form 5472 as the letter inside it.

What to include:

• Basic company info on Form 1120 (LLC name, address, EIN)
• “Foreign-Owned U.S. Disregarded Entity” written across the top
• Completed Form 5472 attached behind it

Multi-member LLCs: No Form 1120

If your US LLC has two or more members, it’s usually treated as a partnership for tax purposes. In that case:

• You don’t file Forms 5472 and 1120
• Instead, you file Form 1065 (partnership return) and provide each member a Schedule K-1

However, if your multi-member LLC chose to be taxed as a corporation (by filing Form 8832), then the corporate rules apply — meaning Form 5472 + Form 1120 may be required. (See below.)

Important Tip: Some non-US founders mistakenly file Form 5472 for multi-member LLCs taxed as partnerships. That’s incorrect and can create confusion or penalties.

Form 1120 for foreign-owned C corporations

If your company is a US C corporation that is 25% or more foreign-owned, you must also file Form 5472 — but here, it’s filed as part of your corporate income tax return.

The C corporation files a full Form 1120, not a pro forma one. The filing includes:

• Form 5472 for each foreign owner or related party
• Form 1120 standard corporate income return and expense schedules

Required tax forms by entity type

Here’s a quick overview of required tax forms:

Entity Type	Which 1120 to File	Attach Form 5472?	Notes
Single-member foreign-owned LLC	Pro forma Form 1120		Required even if no income
Multi-member LLC taxed as partnership	Form 1065		Not required unless taxed as corp
Foreign-owned C corporation	Full Form 1120		Required for ≥25% foreign ownership

What is a “Reportable Transaction”

The IRS wants visibility into any movement of money or value between a US company and its foreign owner (or other related foreign parties). That’s what Form 5472 captures — even if there’s no profit, invoice, or customer involved.

Below are examples of “reportable transactions” for different business types.

Reportable transactions for single-member foreign-owned LLCs

Any time money or property flows between a US LLC and the non-US owner, or any parties related to the owner, it must be disclosed. That includes funding the company, paying yourself back, or covering expenses from a personal account.

Example	Reportable?	Notes
You pay the LLC registration fee and other incorporation expense from your personal account		Registration
You wire $5 000 from your foreign account to the LLC bank account		Capital contribution
You pay a vendor personally and get reimbursed by the LLC		Owner reimbursement
You pay yourself from your LLC		Owner distribution
You loan the LLC money or the LLC loans you money		Must report amount and terms
LLC pays a US-based contractor		Not a foreign related-party

Zero-transaction myth: Even if your LLC never made a dollar, you must still file Form 5472 each year with reportable transactions. 

Important: Form 5472 must always be filed in the year of formation. The owner paid with their personal fund for LLC formation, and that is considered a capital contribution. 

How to track and document your reportable transactions

To make filing easier and avoid mistakes:

1. Keep a separate business bank account for US operations.
2. Record every transfer between yourself (or your foreign company) and the US entity.
3. Note currency conversion rates used.
4. Keep receipts and agreements for at least five years in case the IRS asks for proof.

Our team of inhouse bookkeepers can identify reportable transactions for you and work directly with the tax team to prepare Form 5472.

Tip: Always record transactions in their original currency and the 5472 preparers will convert to USD using official exchange rates.

Understanding “Related Parties” for Form 5472

The IRS doesn’t just want to know about transactions between your US entity and you as the foreign owner — it also wants details about any “related parties.”

Note that the IRS looks at control, not just ownership. If you or your company can influence both sides of a transaction, the foreign party is probably “related.”

If your LLC sends or receives money from any of these parties, those transactions are reportable on Form 5472.

Examples of related parties

Under IRS rules, a related party can include:

Relationship	Description	Example
Foreign owner	The non-US person or company that owns your US LLC or C corp	You personally, if you own 100% of the LLC
Foreign parent company	A company abroad that owns your US entity	A Singapore company owns a US Delaware C corp
Foreign subsidiary or affiliate	A foreign company your US entity owns or controls	Your US LLC owns 60% of a UK startup
Same owner’s other company	Another business controlled by the same foreign owner	You own a UK company and a US LLC — they transact
Immediate family members	Spouse, parents, children, siblings who own or control related entities	Your spouse owns a Hong Kong company that pays your US LLC
Foreign partnership or trust	Foreign structures owned or controlled by the same person	Your foreign holding company or trust transfers funds to your US entity

Common examples of related party transactions

One of the most common mistakes foreign owners of US LLCs make is overlooking transactions of the LLC with related parties. This is especially true when those transactions don’t show up in your LLC’s bank statement.

Examples:

• Your personal foreign account sends startup capital to your US LLC.
• Your US LLC pays your spouse’s foreign design company for work.
• Your foreign company reimburses your US entity for shared expenses.
• Your brother pays the LLC’s registered agent fee on your behalf.

The last example shows how “hidden” related party transactions can be. Even if the related party does not get reimbursed for payments made on behalf of the LLC, the transaction must be reported.

Properly identifying related parties helps you:

• Avoid incomplete filings or mismatched records
• Justify intercompany payments (e.g., service fees, reimbursements)
• Reduce the risk of penalties or audits

Need help with this? Our experienced team of bookkeepers and tax specialists will identify reportable transactions in your bank statements and ask specific questions (via a questionnaire) to identify other reportable transactions that are not made through your LLC bank account.

Step-by-step filing guide for IRS Form 5472

Step 1: Obtain an EIN

You need an Employer Identification Number (EIN) from the IRS to file Form 5472 —even if you have no employees. (Our incorporation package includes obtaining the EIN.)

Step 2: Complete Form 5472

• Fill out LLC details and foreign owner information.
• Report each type of transaction.
• Leave unused sections blank (not “0”).

Step 3: Prepare Pro Forma 1120 for single-member LLCs

• Basic entity info only (name, address, EIN).
• Write “Foreign-Owned U.S. Disregarded Entity” across the top.
• Attach Form 5472.

Step 4: File with the IRS

Send both forms by fax or mail to the IRS Ogden address. Keep a copy for five years.

Need help? Entity Inc. can file Form 5472 for you and ensure IRS compliance.

Form 5472 due dates, extensions & penalties

Your 5472 filing is due on April 15 but you can request an extension until October 15. Don’t miss the deadline as late filing penalties can be very steep. The penalty is not only for late filings. It can also be triggered by incorrect filing information.

Event	Date	Form
Standard Deadline	April 15 (after year-end)	5472 + 1120
Extended Deadline	October 15 (request with Form 7004)	5472 + 1120
Late Filing Penalty	$25,000 per year	Increases after 90 days

Common mistakes to avoid

If you ever looked at the tax form with its 9 parts and read the 8 page instructions, it’s understandable that many foreign founders make mistakes with their filings. We often see LLC owners, who used a standalone incorporation service to register their LLC (or even one of the full-service providers) and are then left alone to figure out their taxes themselves.

Here are some of the most common mistakes we see:

1. Thinking “no income” means no filing.
2. Failing to list loans or reimbursements as transactions.
3. Not including all transactions with related parties.
4. Reporting in USD incorrectly (IRS requires exact exchange rates). 
5. Submitting Form 5472 without an EIN.
6. Missing deadlines because your accountant didn’t know about the requirement.

FAQs about Form 5472

Do I have to file if my LLC had no income?

Can I file Form 5472 online?

What if I missed a year?

Does each foreign owner need a separate Form 5472?

Is this the same as Form 5471?

How Entity Inc. helps foreign founders stay compliant

We specialize in helping non-US founders meet IRS requirements for foreign-owned LLCs and have successfully filed thousands of 5472 forms for entrepreneurs worldwide.

Included Services

• Preparation and filing of Form 5472 and pro forma 1120.
• Review of your LLC structure for reporting accuracy.
• Extension filings and penalty relief advice.

“They do our tax filings every year. When I started, everything in the US was confusing, but Entity Inc. team told me what I needed and helped with everything so I could focus on my business.” — Sharif El Komi, founder.