Every foreign-owned US LLC must file Form 5472 annually. Missing it costs $25,000. We handle it for you — accurately, on time, every year.
$25,000 IRS Penalty for Missing Form 5472 — Every Year
The IRS automatically assesses a $25,000 penalty per LLC, per year for failure to file Form 5472. This penalty applies even if you had zero revenue and even if you did not know the form existed. Late or incomplete filings carry the same penalty. Don't risk it.
Understanding your annual IRS filing obligation as a foreign owner
Form 5472 is an IRS information return required for foreign-owned US disregarded entities — most commonly single-member LLCs with a non-US owner. The form is filed together with a pro forma Form 1120 (US Corporation Income Tax Return) each tax year.
The purpose of Form 5472 is to give the IRS visibility into financial transactions between your US LLC and you as the foreign owner (or other related foreign parties). Congress enacted these rules to prevent unreported wealth transfers through US entities.
Critical point: Filing is required even if your LLC had zero revenue, made no profit, and conducted no business during the year. As long as the LLC existed and had any reportable transactions (including simply receiving your initial capital contribution), the filing obligation exists.
Under Treasury Regulation 1.6038A-1, a foreign-owned domestic disregarded entity is treated as a domestic corporation separate from its owner solely for purposes of the Form 5472 and Form 1120 filing requirement. The annual deadline is April 15 (or October 15 with extension).
You are required to file if all of the following apply
Your LLC is organized in any US state (Wyoming, Delaware, etc.) and is treated as a disregarded entity for US tax purposes (i.e., single-member LLC).
You are a foreign individual, foreign corporation, or other non-US entity that owns at least 25% of the LLC (directly or indirectly).
The LLC engaged in any reportable transaction with a related party — including contributions, distributions, loans, or sales — during the tax year.
If you are a non-US founder who formed a US LLC — even a simple Wyoming or Delaware single-member LLC — you almost certainly need to file Form 5472 every year. The moment you sent money to your LLC (your initial capital contribution), that qualified as a reportable transaction. This rule catches nearly every foreign-owned single-member LLC.
Any money or property movement between you and your LLC must be reported
Money you put into the LLC as the owner — even your very first deposit to open a business bank account.
Any profits or funds withdrawn from the LLC back to you as the owner.
Loans you made to the LLC or loans the LLC made to you, including any repayments of principal or interest.
Any sale, purchase, or transfer of property between you and your LLC — including intellectual property and equipment.
Services rendered between you and the LLC — for example, consulting services you personally performed for the LLC.
Rent paid to or from the LLC, and any royalty payments for use of intellectual property.
Everything handled for a flat fee — no surprises
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Common questions about Form 5472 obligations
Yes. The filing obligation is not triggered by revenue — it is triggered by the existence of reportable transactions. Your initial capital contribution (money you put into the LLC) is itself a reportable transaction. Even if you had zero customers, zero income, and zero activity, you likely still need to file. The only true exception is if the LLC had literally zero transactions of any kind during the year.
The IRS automatically assesses a $25,000 penalty per LLC, per year. There is no warning or grace period — the penalty is imposed immediately upon failure to file. If the failure continues after the IRS notifies you, an additional $25,000 penalty can apply for each 90-day period the violation continues. Late filing penalties may be reduced via a First-Time Penalty Abatement request, but approval is not guaranteed. Prevention is far less expensive than resolution.
You must report all "reportable transactions" between your LLC and related parties (primarily you, the foreign owner). This includes capital contributions, distributions, loans (and repayments), sales and purchases of property, services rendered, and rents and royalties. You do not need to report ordinary business transactions between your LLC and unrelated third-party customers or vendors.
Technically yes, but there are significant pitfalls. Form 5472 must be filed with a pro forma Form 1120, which most non-tax professionals are unfamiliar with. The form must be paper-filed (it cannot be e-filed as a standalone form), sent to the correct IRS address, and must accurately capture all reportable transactions. An error or omission still triggers the $25,000 penalty. Given the $75 cost of our service versus a $25,000 penalty risk, professional filing is the prudent choice for most founders.
Form 5472 is due by April 15 of the year following the tax year (e.g., April 15, 2026 for the 2025 tax year). An automatic extension to October 15 is available by filing Form 7004. We recommend filing well ahead of the deadline, and we proactively contact all clients each year to ensure timely filing.
For $75, we handle your Form 5472 accurately and on time — every year. Book a free call or get a Pricing to get started today.